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Help for employees in Israel

Help for employees in Israel.

The Israeli government has adopted new measures as part of the economic plan approved until June 2021. These measures will help employees in Israel and those on unpaid leave.

Safety net for employees on unpaid leave (Halat ):

  • Unemployment benefits:

  • Unemployment benefit entitlements in Israel will be fully extended until the end of June 2021, or until the unemployment rate falls back below 7.5%.

If the unemployment rate falls between 7.5% and 10%, unemployment benefits will be reduced to 90% of the monthly amount.

If the unemployment rate in Israel falls below 7.5%, the extension of eligibility will cease after 30 days, starting from the end of the month in which the fall is recorded.

The state has also approved the following measures:

  • Cancellation of 5-day waiting period for the start of the unemployment period.
  • Shortening of the minimum contribution period as an employee with Bitouah Léoumi: 6 months instead of 12 months.
  • Unemployed people under 28 will receive the same amount as those over 28.
  • Adjustment of the application mechanism:

The state now wants to reduce the minimum period of Halat - unpaid leave - to a minimum of 14 days.

Thus, if an employee is sent on unpaid leave in Israel for a period of 14 days or more, he or she will again be able to register for unemployment and receive benefits. Provided you have paid contributions for 6 of the last 18 months.

Read also: Financial support plan for companies in Israel.

Extra help - Withdraw money from your keren ishtalmout tax-free.

  • Tax exemption on the withdrawal of funds from your Keren Ichtalmout :

The state has validated the law granting a tax exemption on the withdrawal of your keren ishtalmout, even when the fund is held for less than 6 years.

If one of the spouses is on unpaid leave or unemployed, he or she can withdraw part of the amount contributed to the Keren Ishtalmout tax-free.

This benefit is capped at 7,500 shekels per month for a maximum period of 6 months.

We remind you that, under normal circumstances, the withdrawal of Keren Ishtalmout funds before the 6-year period since the opening of the fund, is taxed according to the current scale.

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Our offices in Israel

Our firm specializes in Israeli accounting and taxation, with in-depth expertise in Olim Hadashim benefits and tax optimization.

Our consultants in Tel Aviv

English speaking accountants in Israel
Address: 31 boulevard Rothschild, Tel-Aviv (Israel)
Phone number: 03-9446635
Fax: 03-9494682
Email: office@cpa-dray.com

Our consultants in Jerusalem

English speaking accountants in Israel
Address: Kanfei Nesharim 68. Merkaz Oranim
Phone number: 02 631 9000
Fax: 02 631 9005
Email: office@cpa-dray.com