Dear Clients and Friends,

We wish to inform you that, in order to facilitate the employment of foreign workers by the Israeli industry, the government has decided to approve the allocation of permits for up to 3,000 foreign workers in the industrial sector, in two phases. The permits granted in the first allocation will be valid through December 31, 2026.

Submission of applications will be open to Israeli companies in the industrial sector who wish to hire trained and untrained workers in professions found to be in short supply as per the relevant directives of the Population and Immigration Authority.

The permits for foreign workers per employer will be capped at a limit of 10% of all Israeli employees in that company (the maximum number of foreign workers to be rounded to the nearest whole number). However, a company employing up to 20 workers can request permits to employ up to 2 foreign workers.

The good news regarding this allocation arrangement is that the basic salary details are significantly more attractive to employers than they have been in previous such arrangements.

The salary categories are divided into four groups, as follows:

Group A, engineers and technicians: A salary of no less than 130% of the average market salary for a salaried employee.

Group B, trained employees: A salary of no less than 110% of the average market salary for a salaried employee.

Group C, machine operators: A salary of no less than 85% of the average market salary for a salaried employee.

Group D, untrained workers: A salary of no less than 60% of the average market salary for a salaried employee.

• The average market salary for a salaried employee as of 2023 is NIS 11,730.

In each allocation, 60% of the permits will be allocated to Groups A, B, and C and 40% to group D.

Permits to employ foreign workers under this arrangement will only be granted to workers from countries whose GDP (fixed by purchasing power) is higher than or equal to Israel’s GDP as per the relevant published list.

Requests for recommendations from the Ministry of the Economy and Industry as to the receipt of these permits for employment of foreign workers under this arrangement must be submitted by November 30, 2023.

We are available to advise on any questions or issues relating to this matter, and we will be happy to assist you in submitting the applications to receive recommendations from the Ministry of the Economy and Industry.

With hopes for quiet days,

Labour Law Department

Herzog Fox & Neeman