Israel Advances Work Grant Payments Ahead of Jewish Holidays

The Israeli Tax Authority has decided to expedite the second payment of the Work Grant, also known as negative income tax, to tens of thousands of salaried employees and self-employed individuals. The payment, originally scheduled for October 15, will now be disbursed on September 9, over a month earlier, to provide financial relief to families in advance of the High Holidays.

This accelerated payment aims to help households with low to middle incomes manage increased expenses during the holiday season, which typically involve higher spending on food, hospitality, clothing, and vacations. For those who have already applied and been approved, the payment will be automatically deposited into their updated bank accounts.

The Work Grant is designed for individuals who are employed and generating income. The amount is determined by factors such as average monthly income, number of children, family structure, and other data. For the 2025 tax year, the maximum annual amount is approximately NIS 10,260, with potential additional benefits for parents of toddlers.

Eligibility criteria include being a salaried employee or self-employed individual aged 21 or older with children. For those over 55, eligibility is based on income tests, even without children. Income thresholds vary significantly based on family size and structure. For instance, a parent with one or two children can have an average monthly income between NIS 2,450 and NIS 7,289, while a single parent with two children can qualify with an income up to NIS 11,190.

Property ownership is also a factor, with a primary residence generally permitted, but owning more than 50% of another property may disqualify an applicant. Income is averaged monthly based on actual work months. A supplementary grant of up to NIS 500 per toddler under age three is available for the 2025 tax year, potentially reaching NIS 1,000 for families with two toddlers.

A Tax Authority study indicated that about 70% of eligible individuals apply for the grant, meaning a significant portion of potential recipients do not claim the funds. The study also found that prior awareness of the grant and its payment amount strongly influences application rates. Applications for the 2025 tax year are open until the end of 2027, and for 2024 until December 31, 2026. Women over 60 who meet the criteria can also apply for an advance payment for the 2026 grant.