By Amit Acco, Partner |
On March 12, 2025, updates were published regarding the maximum amounts employers can deduct from foreign workers’ salaries for adequate housing, medical insurance, and employment agency fees.
The following relates to employees in sectors which are NOT agriculture and Health Care (for example: Experts, Employees in Industry and services)
Adequate Housing
The maximum monthly deduction an employer can make from a foreign worker’s salary (excluding agricultural workers) for adequate housing, when the housing is not owned by the employer, is as follows:
| Region | Amount (NIS) |
|---|---|
| Jerusalem | 492.39 |
| Tel Aviv | 559.90 |
| Haifa/Central | 373.30 |
| South | 331.86 |
| North | 305.34 |
Additionally, employers can deduct the following maximum amounts for ancillary housing expenses:
- General ancillary expenses: 107.27 NIS
Medical Insurance
Due to changes in the Consumer Price Index published in December 2024 compared to December 2023, the maximum deduction from a foreign worker’s salary for medical insurance is:
- For non-caregiving workers: 143.72 NIS
Employment Agency Fees
Adjustments to the amounts that can be charged to foreign workers by private employment agencies are as follows:
- Before the worker’s entry into Israel: A private agency collaborating with a foreign agency cannot charge more than 4,288.36 NIS for the agreement between them.
- After the worker’s entry into Israel: A private agency may charge the foreign worker a maximum fee of 962.09 NIS (plus VAT) at the end of 26 or 38 months from the worker’s first entry into Israel.
Kan-Tor & Acco (KTA) offers comprehensive legal advice and labor law services to employers, ensuring full compliance with Israeli regulations while optimizing employment costs. Our expert team assists in navigating complex labor laws, managing salary deductions within legal limits, and structuring employment agreements that align with both business needs and regulatory requirements. With a proactive approach, KTA helps employers minimize risks, streamline workforce management, and maintain compliance with evolving labor laws.
