Minimum Prevailing Wage for Foreign Experts Increased

The situation

Effective January 1, 2018, the minimum monthly prevailing wage for foreign national experts has increased to NIS 19,604, up three percent from last year.

A closer look

• Initial and renewal applications. Employers of foreign national experts seeking to obtain or renew a work permit on or after January 1, 2018 must increase the foreign national’s minimum salary to comply with the new rule.
• Pending applications. Employers of foreign national experts with pending work permit applications as of January 1, 2018 must increase the foreign national’s minimum salary to comply with the new rule. 
• Immigration applications that do not meet the minimum salary will be rejected.
• Exclusions. Foreign nationals under Short Employment Authorization visas or short-term expedited process (STEP) visas are not affected by the increase.

Reminders on other requirements

• Benefits and allowances. As before, benefits and allowances may only be included if they are officially recorded in the pay slip, guaranteed and fixed, and are not paid in kind. Specifically, employers can include the gross salary, unconditional per diem payments, unconditional monthly relocation compensation, unconditional monthly international travel allowance for home visits, unconditional monthly bonuses and any other unconditional monthly payment made to the foreign national expert.
• Currency. As before, salaries can be paid in any currency and not necessarily in Israel.

Fragomen worked closely with Kan-Tor & Acco Law Firm (Israel) to prepare this alert. It 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].