Israel: Deposit Withholding Now Required for Employers in Infrastructure Sector

Employers in the infrastructure sector (who build roads, bridges, power plants and other critical infrastructure projects) are now required to withhold a portion of their foreign national employees’ salaries each month to ensure that they depart from Israel upon the expiration of their visas. Previously, this only applied to employers in the construction industry or those employers utilizing specific technologies. If a foreign national timely departs prior to their visa expiration, they are typically refunded all deposited fees. However, if they overstay their visas, their deposits will be deducted until they have been in the country without authorization for over a year, at which time their deposit will be fully forfeited.  The government views the penalties as a method to ensure compliance with immigration laws.