Israeli Tax Authority Distributes First 2025 Work Grant Payments to 130,000 Eligible Recipients

The Israeli Tax Authority is transferring the first installment of the 2025 work grant, also known as the "negative income tax," today, Thursday. Approximately 130,000 eligible low-income employees and self-employed individuals who have already applied will receive a total of about 260 million shekels directly into their bank accounts. The grant amount varies based on the applicant's age, family status, number of children, and income level, potentially reaching several thousand shekels annually.

Applications for the grant can be submitted online through the Tax Authority's website. Payments are not automatic for all low-wage workers; only those who applied and meet the income and eligibility criteria will receive the grant. Eligible recipients include workers aged 21 and over who are parents, as well as workers aged 55 and above without children, provided their income falls within specified ranges.

For example, a worker aged 21 or older with one or two children may qualify if their monthly income is between 2,450 and 7,289 shekels, while those with three or more children qualify with income between 2,450 and 8,020 shekels. Single parents have wider income eligibility ranges, such as between 1,510 and 13,660 shekels monthly for those with one or two children. However, meeting income thresholds alone does not guarantee eligibility; other conditions apply, including restrictions on owning investment properties.

The work grant is paid in several installments throughout the year, depending on the application date. This current payment is the first installment for the 2025 eligibility year and is being disbursed in mid-July.