Israel Advances Tax Rebate Payments Ahead of Rosh Hashanah Holiday

The Israeli Tax Authority has rescheduled the second phase of 2025 employment benefit payments, moving them up by over a month to ensure approximately 130,000 recipients receive the funds before the Tishrei holidays. The transfers are now set for Wednesday, September 9, instead of the originally planned October 15. This decision, totaling over 260 million shekels, aims to provide financial relief to citizens ahead of the holiday period.

The employment benefit, also known as a negative income tax, is designed for low-to-moderate income employees and self-employed individuals. Eligibility is determined on an individual basis, with both working spouses potentially qualifying for separate payments. Key recipients include working parents aged 21 and over, and individuals over 55 without children, provided they meet income criteria.

For example, a person aged 21 with one or two children can receive the benefit if their monthly income ranges from 2,450 to 7,289 shekels. This upper limit increases to 8,020 shekels for those with three or more children. Single parents with one or two children have a broader income range of 1,510 to 13,660 shekels monthly.

Eligibility can be affected by factors such as owning an investment property. The maximum employment benefit for 2025 can reach 10,260 shekels, distributed in four installments, meaning each payment could be around 2,565 shekels. Additional support of up to 500 shekels per month per child under three is available, totaling up to 6,000 shekels annually, without requiring a separate application.

The Tax Authority has also sent out around 240,000 notifications to potential beneficiaries, urging them to check their eligibility and apply online. Furthermore, working women born after January 1, 1960, who are at least 60 years old and meet the conditions, can apply for an advance on their 2026 benefit. Applications for the 2024 employment benefit remain open online until December 31, 2026.