By: Amit Acco, Partner |
The Ministry of Labor recently published for public comment a proposal to amend regulations in order to increase the permitted deductions from foreign workers’ wages for housing and related expenses. This marks a significant change, as the total amount employers can deduct will range between 713 to 1,247 NIS per month, compared to 412 to 667 NIS previously.
The proposal eliminates the sector-based distinctions that existed until now and sets deduction limits based on residential areas and housing types. For instance, employers in Tel Aviv may deduct up to 1,051 NIS, in Jerusalem up to 883 NIS, and in mobile housing units across the country up to 671 NIS. Additionally, the amount allocated for housing-related expenses will be updated to an additional 196 NIS across all sectors.
This initiative arises amid a nationwide labor shortage, exacerbated by restrictions on Palestinian workers entering Israel. The government is working to increase the number of migrant workers in industries facing workforce deficits, but the key question remains: Is increasing wage deductions a proper solution, or does it constitute an infringement on foreign workers’ rights?
Employers argue that their actual housing expenses far exceed current deductions, and that the amendment will allow them to provide adequate housing for workers. On the other hand, labor organizations fear that these increased deductions will significantly impact foreign workers’ wages, many of whom already struggle with poor living conditions.
Ken-Tor & Akko Law Firm, specializing in immigration to Israel, assists employers in navigating the complex regulations surrounding the employment of foreign workers. We provide comprehensive legal consultation regarding workers’ rights, employer obligations, and other regulatory aspects. If you employ foreign workers and wish to understand how these regulatory changes may affect you, we are here to help.
