Search
Contact
Login
Share this article
IMPACT – MEDIUM
What is the change? Israel raised its 2018 minimum gross monthly salary from 5,000 Israeli new shekels (about US$1,450) to 5,300 shekels, effective Jan. 1.
What does the change mean? The increase directly affects the salaries of foreign employees on SEA/STEP visas who must be paid the minimum gross monthly salary. Foreign employees working on a B-1 work permit must be paid twice the average salary (to be announced later this month).
Background: In addition to the increase in the minimum gross monthly salary, the government announced it will not change the minimum mandatory pension payments of 6 percent for employees. The employer contribution will remain at 6.5 percent. The government also announced that processing fees for 2018 will be slightly higher than 2017. The new government fee for a B-1 work visa will be 9,675 shekels (not including fees paid to the Ministry of the Interior’s Work Permit Unit).
BAL Analysis: Companies should plan for the new salary minimums for SEA/STEP visas for 2018.
This alert has been provided by the BAL Global Practice group and our network provider located in Israel. For additional information, please contact your BAL attorney.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Israel has launched a new program that will allow foreign entrepreneurs to obtain Innovation Visas.
What does the change mean? Interested foreign entrepreneurs may now apply for visas by submitting applications to one of 12 organizations – called “landing pads” – which will host successful applicants and help them get started on their projects. Those who are able to successfully launch a company in Israel could then become eligible to obtain extended work authorization at the end of the initial period.
Background: The program, called the Israeli Innovation Visa (IV) program, is being piloted for a three-year period. The application process will work as follows:
Entrepreneurs who create companies and receive support for extended work authorization from the Innovation Authority will be able to seek expert visas valid for up to five years and three months in total.
BAL Analysis: The program is designed not only to provide qualifying foreign entrepreneurs a relocation path to Israel, but also guidance as they navigate the country’s high-tech sector. The program is being piloted for three years, and Israeli officials hope it will help cement the country’s reputation as a top destination for foreign entrepreneurs interested in technical innovation.
What is the change? Israel’s parliament, the Knesset, approved a law last week to allow Jewish heritage immigrants (Olim) to obtain passports immediately upon arrival in Israel.
What does the change mean? Effective immediately, Olim coming to Israel under the Law of Return will be able to obtain passports immediately upon arrival. Previously, Olim had to reside in Israel for a year before they could be issued a passport.
Background: The Law of Return allows for all Jewish heritage immigrants to reside and apply for citizenship in Israel, regardless of their nationality. Until recently, however, this group of immigrants had to make Israel their primary place of residence and had to reside in the country for at least a year before they could obtain passports. The Knesset gave final approval last week to legislation allowing Olim to apply for and obtain passports immediately upon arriving in Israel, even if it is not their primary country of residence.
BAL Analysis: The change will make foreign travel from Israel easier for newly arrived Olim and will be particularly helpful to those who still have family or business interests abroad.
What is the change? Israel has published new regulations on work visas for foreign nationals working on large- or medium-scale projects that require specific technological or mechanical expertise.
What does the change mean? The new regulations were written to streamline processing and to establish a means for determining what types of projects require foreign nationals with specific technological or mechanical expertise who would not otherwise qualify for work visas. The new regulations allow for the waiver of a key salary requirement to enable companies to bring such workers, mostly blue-collar skilled employees, to Israel. Few details were released, however, on what projects will qualify.
Background: The application process for the work visas described have some similarities with the process for obtaining a regular B-1 work visa. Employers will be required to submit separate written applications for each foreign employee. Applications should include a project description and an explanation of the employee’s expertise, skills and knowledge.
Israeli companies contracting with foreign companies to complete a project must also provide copies of the contracts they have with their foreign partners.
The normal requirement that companies pay foreign workers double the average Israeli salary will be waived for workers coming to Israel via this route. Employers will be required, however, to meet other employment standards and conditions, including providing an employment contract, adequate housing and medical insurance, among other requirements. Foreign nationals must be directly employed by the foreign employer and cannot be third-party employees or freelancers.
BAL Analysis: While the new program offers the potential to help Israeli companies in need of project-related technological or mechanical expertise, some key details remain unavailable at this point and it may prove difficult for private sector company projects to qualify for this visa route. Those interested in the program should contact BAL at least eight months ahead of a project’s start date to allow for BAL to determine if this option will be available and to allow for adequate planning and time for visa processing.
What is the change? Israel has clarified that any work permit that is not followed up with a visa application within 90 days will automatically be deemed canceled.
What does the change mean? The policy is intended to prevent companies from hoarding work permits or holding onto them until their one-year expiration.
Background: The Ministry of Interior’s Work Permit Unit set the policy because of a large number of unused work permits.
BAL Analysis: Companies filing for work permit should be aware that they will be canceled within 90 days unless followed up with a visa application, regardless of expiration date. In light of the clarification that work permit violations constitute criminal offenses, employers should anticipate increased inspections and criminal prosecutions.
What is the change? Israel’s National Immigration Authority has indicated that it will step up inspections, with a particular focus on contractors and third-party employees working at client sites.
What does the change mean? Employers are advised to review the immigration statuses of contractors and subcontractors, the activities of business travelers and maintain copies of immigration documents and reports that may be requested by authorities.
BAL Analysis: Companies can face serious consequences if employees, contractors or subcontractors are working without the proper permit or are conducing activities that are not allowed on the permit or visa they hold. Employers are urged to review the status of contractors and subcontractors and be sure they maintain relevant documents.
Copyright © 2017 Berry Appleman& Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? The Ministry of Interior’s work permit unit said this week that applications for short-term employment authorization, or SEA, permits for foreign nationals already in Israel will be automatically denied.
What does the change mean? Companies must apply for SEA permits before the foreign national seeking short-term work authorization travels to Israel.
Background: Officials issued the clarification about the SEA permit process after receiving a high number of applications for short-term work authorization on behalf of foreign nationals already in Israel. The work permit unit clarified that such applications will be automatically denied and that the filing fee will not be returned.
BAL Analysis: Businesses should take note of the clarification and plan accordingly. While traveling to Israel prior to obtaining an SEA permit is not an option for those seeking short-term work authorization, SEA permits can be obtained relatively quickly and remain a good option for companies in need of short-term work from a qualifying foreign national.
What is the change? Israeli government offices will close April 10-19 for Passover, suspending visa and work permit processing during the holiday. Israeli consulates may also close or limit their hours.
What does the change mean? Applicants with time-sensitive applications should file them as soon as possible and anticipate delays when offices reopen.
BAL Analysis: Companies and individuals applying for visas and work permits should factor the holiday break into their plans. Those applying abroad should contact the relevant Israeli consulate for individual holiday schedules.
What is the change? Israel has announced the launch of a program that will allow companies to obtain “hi-tech” status, providing them an expedited process to bring high-skilled foreign workers to the country.
What does the change mean? Once the program takes effect, companies qualifying as hi-tech will likely be waived from the requirements of ensuring adequate housing and providing a written contract at the employer’s work site. Spouses of hi-tech employees will likely be allowed to work in Israel. Hi-tech employees are also expected to be waived from requirements that they undergo medical checks before consular processing.
Background: The Israeli government announced its intentions to create the program Jan. 15. While not implemented yet, the program has been taken as a sign that Israel is serious about competing in the global market for highly skilled tech workers. The program is expected to be launched at some point in the second quarter of 2017.
BAL Analysis: Plans for a hi-tech program for qualifying companies in Israel could provide significant benefits to companies that rely on foreign tech workers. BAL will continue to follow developments in Israel and will alert clients as more information becomes available.
What is the change? The Israeli government has agreed to reciprocal terms with the U.S. on investor visas.
What does the change mean? The decision clears the way for Israel to offer investor visas to U.S. nationals under terms that are similar to those of the U.S. E-2 treaty investor program for which Israeli citizens will be eligible.
Background: The two countries have been in discussion over the visas since 2012, when the U.S. moved to make Israelis eligible for investor visas but required reciprocal rules. In 2014, Israel also approved a decision to offer investor visas to Americans, but implementation stalled because Israel was required to make changes to its regulations in order to parallel the U.S. rules. The Israeli government has now accepted the changes required by the U.S. and is poised to implement the visas once procedures are in place.
The U.S. E-2 treaty investor visas allow certain foreign nationals to enter the U.S. for purposes of making a substantial investment in a bona fide new or existing business in which they have at least 50 percent ownership or control.
BAL Analysis: In the coming months, interested investors can expect procedures to be published and a start date to be announced for the visas.