Israel's Tax Authority Advances 'Work Grant' Payments Ahead of Holidays

Tens of thousands of salaried employees and self-employed individuals in Israel will receive their second "Ma'anak Avoda" (work grant) payment for 2025 early, on September 9, instead of the originally scheduled October 15. The Tax Authority decided to expedite the payment before the autumn holidays to help recipients cover increased expenses during this period. The funds will be directly deposited into their bank accounts on file with the authority.

The first "Ma'anak Avoda" payment for 2025 was disbursed in July, with approximately 130,000 recipients receiving a total of around 260 million shekels, averaging about 2,000 shekels per person. The work grant, also known as a negative income tax, is intended for working citizens with low to middle incomes who have children or have reached a certain age.

The grant amount is calculated based on factors including average monthly income, number of children, family composition, and other criteria. The maximum annual grant for the 2025 tax year is approximately 10,260 shekels, excluding special supplements for parents of young children. The actual sum is determined individually, increasing within a specific income range before gradually decreasing as earnings approach the upper limit.