Israel to Distribute Over $70 Million in Work Grants Next Week

Approximately 130,000 eligible Israelis will receive the second installment of the work grant, also known as negative income tax, for the 2025 tax year next Wednesday. The total payout will exceed NIS 260 million (approximately $70 million USD). The grant, which can amount to thousands of shekels annually depending on the claimant's circumstances, is paid directly into recipients' bank accounts by the Tax Authority.

The Tax Authority decided to expedite the second payment, originally scheduled for at least another month later, to assist eligible individuals with expenses related to the upcoming High Holy Days (Tishrei holidays). The application process is described as simple and can be completed online via the Tax Authority's website.

Eligibility for the grant extends to employees and self-employed individuals aged 21 and above who are parents, or those aged 55 and above, even without children, provided their income meets specific criteria outlined in the 2025 work grant guide. For example, individuals aged 21+ with one or two children earning between NIS 2,450 and NIS 7,289 monthly are eligible. Those with three or more children in the same age bracket earning between NIS 2,450 and NIS 8,020 monthly also qualify. Single parents aged 21+ with one or two children earning between NIS 1,510 and NIS 13,660 monthly are also eligible.

It is important to note that the grant is only provided for low-income brackets detailed on the Tax Authority's website. Additionally, employees will not receive the grant if they or their spouse own an investment property.