Israeli Tax Authority Distributes NIS 260 Million in Work Grants to 130,000 Eligible Recipients

On Thursday, approximately 130,000 eligible Israeli citizens will receive the first installment of the 2025 Work Grant (negative income tax) directly into their bank accounts. The total payout amounts to around NIS 260 million. The grant, which can reach several thousand shekels annually depending on the claimant's circumstances, is intended to improve the financial situation of low-wage workers, reduce socio-economic gaps, and incentivize workforce participation.

The Israeli Tax Authority is processing these payments today for the 2025 eligibility year. The Work Grant is paid in multiple installments, with the first installment disbursed on July 15 of the eligibility year. Eligible recipients include employees and self-employed individuals aged 21 and over who are parents, or those aged 55 and above without children, provided their income meets the criteria outlined in the 2025 Work Grant guide.

Starting in 2024, an additional grant is available for workers who are parents of toddlers. Furthermore, employed women born after January 1, 1960, who are over 60 years old and meet other criteria, can apply for both the Work Grant and an advance payment for the 2026 eligibility year. Applications for the 2024 Work Grant remain open online through the Tax Authority’s website until December 31, 2026. The application process is straightforward and fully digital.