Panel Recommends Major Fee Cuts for Hiring Foreign Workers
Translated & summarized from Panet by baba
An Israeli government committee recommended slashing fees for hiring foreign workers by up to 83% and streamlining the payment process to support the economy, especially small and medium-sized businesses.
The story in 5 lines · by baba
- Committee proposes reducing foreign worker hiring fees significantly.
- New unified application fee set at 370 shekels.
- SMEs to see up to 83% fee reduction for foreign workers.
- Fees will be adjusted for actual employment duration.
- Reforms aim to support the economy and small businesses.
A committee of directors-general for foreign worker affairs, chaired by the Prime Minister's Office, convened on Wednesday, September 16, 2026, and proposed significant measures to reduce the costs and bureaucratic hurdles associated with employing foreign workers. The committee's key recommendations include unifying and lowering application fees across all sectors to a flat rate of 370 shekels, a substantial reduction from the current fees which range from 710 to 1,420 shekels depending on the sector. Additionally, small and medium-sized enterprises (SMEs) employing up to 100 workers will see an approximately 83% decrease in annual fees for up to ten foreign workers, with the new fee set at 1,420 shekels per worker, down from the current 8,490 shekels. The committee also proposed adjusting the fee structure to reflect the actual period of employment, ensuring employers only pay for the time a foreign worker is legally employed in Israel. This change aims to prevent situations where employers are charged a full annual fee even if the worker arrives late in the year or leaves early, without adequate reimbursement. These reforms are intended to bolster the economy, with a particular focus on supporting SMEs.
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