Israel to Distribute $70 Million in Wage Subsidies Ahead of Holidays

Approximately 130,000 working Israelis will receive a second installment of the "Ma'anak Avoda" (negative income tax) subsidy for 2025 on Wednesday, September 9th, according to Ynet, citing the Tax Authority. The total payout amounts to roughly 260 million shekels (approximately $70 million USD). This payment was originally scheduled for at least a month later, but the Tax Authority decided to expedite it so recipients could use the funds during the upcoming autumn holidays.

The Ma'anak Avoda is a subsidy provided by the Israel Tax Authority to low-income workers and self-employed individuals whose income falls below a certain threshold. This threshold is updated annually and varies based on factors such as age, number of children, and single-parent status. The program's objective is to incentivize low-wage earners to remain in the workforce.

The subsidy amount can reach thousands of shekels annually, contingent on individual circumstances. Payments are directly deposited into the bank accounts of eligible recipients who have submitted an application through the Tax Authority's website. Applications for the 2024 tax year are accepted until December 31, 2026, and for the 2025 tax year until December 31, 2027. Payments are disbursed in several installments throughout the year, with earlier applicants receiving their first payment in mid-July.

Eligibility for the subsidy is contingent on not owning an investment property. However, owning a single, occupied residence does not disqualify an applicant. The article also notes that specific criteria for eligibility for the 2025 Ma'anak Avoda are available.