Israel Foreign Worker Employer Levy 2027 Calculator

Foreign Worker Levy by Sector

Israeli employers of foreign workers pay an extra Heitel Ovdim Zarim (foreign worker levy) on top of gross salary: 15% for construction, hospitality, and industry; 10% for agriculture; and 0% for personal caregivers (sade) — the only sector exempt. The levy was introduced to discourage long-term foreign labor reliance and channel revenue toward Israeli worker training programs. Caregivers in private homes are exempt because they perform tasks Israelis broadly will not.

Bituach Leumi for Foreign Workers

Employers pay reduced employer-side Bituach Leumi (~3.45% basic) on foreign worker salaries — full employer rates apply only to citizens and permanent residents. Foreign workers are entitled to work injury, maternity (under some permit categories), and limited health-fund coverage through their employer. The employee-side deduction (~0.4%) is similarly reduced.

Housing and Other Permitted Deductions

Employers in construction and agriculture may deduct up to 7.5% of salary toward housing provided to the worker (dormitory or shared housing). Food, transportation, and laundry deductions are capped tightly under sector-specific orders (Tzav Histadrut). Excessive deductions or substandard housing trigger Ministry of Labor fines and can result in permit revocation.

Permit Compliance and Risk

Employing undocumented workers carries fines of up to NIS 100,000 per worker, with criminal prosecution possible for repeat offenders. Permit holders (kayam) must be checked against the PIBA (Population & Immigration Authority) system — expired permits create employer liability even if the worker initially had valid status. Sector quotas reset annually and unfilled allocations expire; over-quota hires are treated as undocumented.

Sources: piba.gov.il foreign worker rules 2026-27, btl.gov.il sector levies. Last updated: May 2026.