Prevailing Wage and Foreign Worker Fees Rise; Worksite Inspections Continue

The Israeli government has raised the prevailing wage, annual fee for foreign employees and work visa filing fees. Worksite inspections and related deportations of unauthorized workers are also expected to continue on a monthly basis, following 163 deportations reported in 2013.

Prevailing Wage and Foreign Worker Fees Increase

Effective January 1, 2014, the prevailing wage is now 17,910 NIS gross per month (USD 5,123). The previous prevailing wage was 17,000 NIS. The prevailing wage for a one-year B-1 work visa has historically been twice the average market salary.

The annual fee employers must pay for each foreign national has increased from 9,460 NIS to 9,600 NIS (USD 2,746). B-1 work visa and work permit fees now total 11,170 NIS (USD 3,195), up from 10,930 NIS.

Worksite Inspections and Deportations Continue

Worksite inspections are expected to continue on a monthly basis throughout the year. Immigration Enforcement reports that 163 unauthorized foreign workers, primarily in the technology and energy sectors, were deported from the southern region in 2013. Many foreign nationals who were deported have been barred from re-entry for ten years, while employers found with unauthorized workers onsite are restricted from hiring foreign nationals.

The Inspection Unit within the National Immigration Authority has also targeted third-party employees working at client sites and sites with large numbers of contractors.

What This Means for Employers

Employers should incorporate the increased filing fees and costs into their corporate budgets.

With future inspections likely, employers are strongly advised to review the immigration status of all contractors and sub-contractors and the activities of all business travelers in Israel to ensure compliance. Employers should also maintain reports and copies of immigration documents to provide to immigration inspectors. Fragomen can assist with preparing files for a potential inspection.

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 do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].