Minimum Salary Level Increased

The situation

Effective January 1, 2019, the minimum monthly salary for B-1 Expert Work Visa and Hi-Tech B-1 Work Visa (HIT 90 and Hit 365 Visa) applicants in Israel has increased to ILS 20,278, up 3.4 percent from last year.

A closer look

• Existing employees. Employers of foreign nationals currently under B-1 Expert Work Visa and Hi-Tech B-1 Work Visa (HIT 90 and Hit 365 Visa) must increase the foreign national’s salary to comply with the new rule immediately.
• Initial and renewal applications. Employers of foreign nationals who obtain or renew a B-1 Expert Work Visa and Hi-Tech B-1 Work Visa (HIT 90 and Hit 365 Visa) on or after January 1, 2019 must increase the foreign national’s salary to comply with the new rule. Immigration applications that do not meet the minimum salary will be refused.
• Pending applications. Employers of foreign nationals with pending B-1 Expert Work Visa and Hi-Tech B-1 Work Visa (HIT 90 and Hit 365 Visa) applications as of January 1, 2019 must increase the foreign national’s salary to comply with the new rule. Immigration applications that do not meet the minimum salary will be refused.
• Unaffected categories. Short-Term Employment Authorization (SEA) applicants and Short-Term Expedited Process (STEP) B-1 Work Visa applicants are not affected by the changes.

Reminders on other requirements

• Benefits and allowances. As before, benefits and allowances may only be included in the minimum salary calculation if they are guaranteed, paid via bank transfer, processed via payroll, and paid monthly for the entire assignment or employment duration.
• Housing allowance. As before, the host company is required to provide a housing allowance to foreign workers.
• Market salary rate. As before, salaries must also meet the market salary rate for the proposed position.
• Currency. As before, employers are required to guarantee the salary in ILS regardless of payroll location and/or exchange rate fluctuations.

Background

Israel increased the salary threshold by 2.2 percent for 2017 and 2.7 percent for 2018.

Looking ahead

Croatia, Latvia and Slovenia are expected to announce new salary thresholds in the coming weeks.

Fragomen worked closely with Kan-Tor & Acco Law Firm (Israel) to prepare this alert. This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].