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Employment in Israel

Professional Social Media Etiquette in Israel

Social media is being used all around the world for professional purposes as well as personal. As the main form of communication for some people, it’s important to understand how Israelis use the various platforms, and what’s acceptable and what’s not in the workplace and business world.

WhatsApp for work communication

Israel is a country built on informality and this extends to social media use in the workplace as well. WhatsApp is often the main method of business communication, especially when a quick or brief response is warranted. WhatsApps are often sent after – or before! – work hours. Depending on company culture, you may not need to respond to them right away, or it may be sufficient to reply that you have seen the message and will deal with it during work hours. Other workplaces may expect that you are responsive even when you are not in the office.

In order to stay efficient while respecting the WhatsApp work culture, you will want to use WhatsApp web or download WhatsApp to your computer, so you can quickly type responses and copy task requests into the task management software you use.

Keep in mind that your profile picture and statuses are being viewed by work colleagues as well as your friends and stick to pictures and content you feel comfortable sharing with people you work with.

Private messages on social media sites

Potential clients might reach out via Facebook, headhunters will contact you on LinkedIn and you will get questions on Instagram. Israelis don’t limit their business interactions to email and WhatsApp. Whatever accounts you have need to be periodically monitored, in case someone has reached out to you and is awaiting a response. If you take too long to respond, the contact will likely move on and contact someone else.

Don’t slander a former employer or a business

Slander laws are very strict in Israel, so if you post something negative about a business you open yourself up to a lawsuit, even if the information you shared is 100% true. Potential employers will also look at your social media to get a sense of who you are, and you don’t want to be seen as difficult and hard to work with. As your mother used to say, “If you have nothing nice to say, don’t say anything.”

Be aware of your company’s social media policies

Your company may have policies about what you can post on your own social media about the company. They may also have policies about using social media while you’re at work. Some Israeli workplaces even shut down access to social media sites on their browsers to minimize distractions during work hours. Make sure you know what’s acceptable and what’s not at your workplace, and act accordingly.

Post only what you don’t mind a potential employer seeing 

Israeli employers are looking at the social media accounts of potential hires and current employees. If you’re freelancing, prospective clients will check you out on social media before deciding whether to work with you. Be mindful of what you post and whether it shows you in the best light. You want to avoid bad language, inappropriate pictures, anything that can be interpreted as racist, consistent negativity, rudeness or support for violence. 

Use of social media is just one way in which professional interactions might be different in Israel as opposed to your home country. We’ve demystified some of this for you in Israeli Company Culture (and Your Culture Shock) and Business Culture in Israel. We also recommend that you read our free e-book, Your Route to Career Success in Israel.

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Employment in Israel

When Kids Are on Vacation but It’s a Regular Work Day

One of the challenges of the Israeli workforce is that there are many days when kids are on vacation but their parents are not. These include erev chag, the days between Yom Kippur and Sukkot, Chanukah, Purim and Shushan Purim, the week before Pesach, and – of course – the long summer vacation. If you have small children who can’t be left home alone, these days can present a huge challenge. Here’s how Israelis manage regular work days that are school vacations.

Taking vacation days

Many Israelis use their vacation days to hang out with their kids while they are on vacation. Most employees don’t have enough vacation days to take off all the days, plus there’s lots of competition among workers to get these days off, so this option has its limits. One way to deal with this is for the mom to take some of the time off while the dad takes different days off. 

Kaytanot

Kaytanot (or camps) are not just for the summer! Many municipalities run camps for kids during Chanukah vacation, the week before Pesach and the days between Yom Kippur and Sukkot. Sometimes these camps are connected to afternoon programs (Tzaharon) and sometimes they are open to the public. There are also enterprising individuals who run private camps during these times to keep kids entertained and safe while their parents are at work.

Working from home

If the kids are capable of entertaining themselves at home, working from home is a good solution. This is, obviously, only possible if the workplace allows remote working. It works best if the kids have new activities or friends to play with that will keep them occupied for long stretches of time. It may also necessitate some work being made up later in the evening when the kids are asleep or someone else is watching the kids.

Grandparents, relatives or babysitters

Many Israelis rely on grandparents to help out on vacation days. If the grandparents work themselves or are otherwise occupied, they might ask aunts, uncles or cousins to pitch in. When all else fails, they rely on paid babysitters. Since olim tend not to have relatives in the country, the babysitter option may seem like the only one. Alternatively, olim can help each other out by taking care of each other’s kids so that each family is free some of the time to work.

Flexible or remote jobs

Since this is a recurring issue, and is compounded by the necessity of caring for sick kids, taking kids to doctor’s appointments, getting them to extracurricular activities and other parenting tasks that get in the way of work, one or both parents might choose to work in a more flexible job. Jobs that aren’t flexible but whose vacation days are aligned with the school calendar can also alleviate a lot of these issues. Teachers, guidance counselors and other educational professionals work hard but enjoy vacation days when their kids are home.

Remote jobs and freelance work tend to allow for more time off. People in these jobs can often schedule their work around their home lives and be there for their kids when they’re on vacation. And in later years, when the big kids are old enough to take care of the younger ones, parents may reevaluate and choose full-time in–office employment.

For more tips on how Israelis with young children manage their careers, see Juggling Kids’ Schedules and Work: How Do Israelis Do It?

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Employment in Israel

Year End Tax Refunds

You may be entitled to a tax refund for 2024 for one of the following reasons:

Charitable donations 

You may be eligible for up to 35% of the amount donated to any organization with tax deductible status (chapter 46), up to the amount of income taxes paid.|

If you are a Route 38 team member, we can assist you in claiming this refund in one of the following ways:

A.  Submit all receipts to our office no later than December 10 , in addition to the attached Declaration that no services were received in exchange for the donation.  We will complete all paperwork on your behalf and apply the credit to your December tlush. 

IMPORTANT NOTE: for donations totaling over 25,000 ILS total, the deadline is December 3.

This service costs 350 ILS.

B. You can file  independently online via the Income tax authority website by registering at Mas Hachnasa.

If for some reason you cannot register, the alternative is to schedule an appointment at your local Mas Hachnasa office.  Bring all qualifying receipts, a recent Tlush and your Teudat Zehut. The Mas Hachnasa office will issue an Ishur stating the amount of your refund.  Submit this Ishur to our office by December 31 and we will apply the credit to your December pay stub.

This service is free of charge.

It is best to apply as early as possible.  Towards year’s end the tax authorities get very backlogged.

All charity receipts must be the following:

  1. Original copies (or digital)
  2. Dated 2024
  3. Have Israeli tax deductible status (chapter 46)
  4. Be written out in the name of the taxpayer

Note that one can  file a tax return for up to 7 years at the Mas Hachnasa office to claim this refund retroactively.

Partial employment

If you began working with Route 38 mid year and had some months in 2024 that you were not employed or lived abroad and did not receive unemployment payments, you may be eligible for a tax refund.

Special education child or disability in the family

This may qualify you for tax credits which can be applied retroactively for the entire year.

Please reach out to your account manager for further clarification and assistance.

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Employment in Israel

Maximizing Your LinkedIn Profile for Getting Hired in Israel

Your LinkedIn profile is an integral part of any job search in Israel. According to CTech, 93% of Israeli organizations use social media for recruitment, with 87% reporting success. 80% say they were successful on LinkedIn, while 47% succeeded on Facebook.

Not only are recruiters looking for talent on LinkedIn, they are also checking out the LinkedIn profiles of candidates who apply for jobs, so it’s important that you maximize your profile with your job hunt in mind.

Make a good first impression

The first thing people see when they look at your LinkedIn profile is your headline and summary. These should succinctly state what you do and what makes you different from other similar professionals out there. Be sure to tailor your text to the industry you are in and use keywords that recruiters will likely be looking for. Since this first impression is so important, consider using AI tools like ChatGPT to polish your text and make it more eye-catching.

Don’t just list your work experience and skills

A list of jobs and what you did at each one is boring and uninformative. Instead, use the work experience section to highlight key accomplishments at each position you held in the past. Showcase the various skills that you have and demonstrate that you have brought value to each workplace. A skill should be described in a sentence or two, not in a short phrase, so it’s clear that you have really mastered this proficiency.

Beef up your recommendations

Your LinkedIn profile should include recommendations from former bosses, colleagues and clients. Send a message to people you know will have positive things to say, let them know you’re job hunting (that’s useful networking too) and ask for their recommendation. Not everyone will have time or know what to say, so don’t take it personally if someone isn’t responsive. Let them know what you would like emphasized in their recommendation (i.e. specific skills or personality traits) as that will make it easier for them to quickly write something up.

Engagement

Recruiters in Israel like to see an active LinkedIn account, not just a calling card. As part of your job search, connect to more people on the platform and post engaging industry-specific content. Join industry groups and interact there as well. If you’re not currently employed, you can make it clear that you are searching for work and let people know what types of jobs are a good fit. You never know when one of your connections will have an idea for you.

When you see a job post from a specific company, it’s a good idea to search your network on LinkedIn to see if you have any connections that work there. Message them that you are applying to work at their company and ask if they can put in a good word for you or pass your CV along with their recommendation. Israelis are givers and they enjoy helping others, so chances are that even if your connection is tenuous, they will be happy to help you out. If they don’t feel they know enough about you to recommend you, they will likely still be willing to give you tips about company culture, which can be helpful in the interviewing process.

Invest in LinkedIn even when you’re employed

It’s tempting to forget about networking when you’re gainfully employed, but you never know when you will want or need to move on. Plus, there are recruiters out there who will offer you opportunities when you’re not even looking, so best practice is to invest in LinkedIn on a regular basis. Keep your profile up-to-date, continue to add connections and post regularly on industry-specific topics.

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Employment in Israel

Working While on Unemployment

Question: I lost my job and am currently receiving unemployment. I’ve just been offered a short-term job that would bring in some much-needed funds to my household income. But I don’t want this to interfere with my unemployment benefits. Is this possible?

Answer: According to Israeli law, you can work part-time while receiving unemployment, as long as you’re not working for the same entity that let you go. If you are paid a daily rate that is higher than the unemployment daily rate, you must report these days to Bituach Leumi and your income will be deducted from your unemployment. You continue to make your required visits to the unemployment office and seek employment, either in another part-time job or in a full-time position.

In a case where the daily income from work is lower than the unemployment rate, you can request that the employment office (Lishkat Taasuka) deduct these days from your unemployment. These days won’t count toward your maximum days of unemployment and you won’t receive payment from Bituach Leumi for them. Since you’re not getting paid for those days, your salary is not deducted from the monthly unemployment payment.

Reporting income during the unemployment period is done online directly to Bituach Leumi. If you’re an employee, you send your pay stubs. If your part-time work is freelance, your income is estimated based on your annual income divided by 12 and is adjusted after the end of the year.

Please note that employees that are put on unpaid leave (Chalat) are not allowed to work at all for the company that put them on leave while receiving unemployment. 

Since income is deducted from unemployment payments, a short-term job may not be financially smart. In many cases, it is better to put your time and energy into looking for a more permanent position. However, if there’s a chance that this temporary job will become long-term or that you will learn valuable skills for the job market, it’s worth taking the hit on unemployment. If you’re restless and not enjoying your time off from work, that can be another reason to take a job that won’t bring in more than you would get on unemployment.

Some helpful resources to assist you in finding a job:

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Employment in Israel

How to Do a Teum Mas

What is a Teum Mas?

A Teum Mas is a coordination of income tax. The income tax authority lets your place of employment know how much tax to withhold from your salary. If you work at more than one job but haven’t done a Teum Mas, the tax authority requires your secondary employer to withhold the maximum income tax rate (47%).

When is a Teum Mas required?

If you have income from more than one job, you need to fill out a Teum Mas. In addition to wages, you are required to do a Teum Mas for certain types of pensions and payments received for certain services such as lecturing. If you received unemployment and started working during the same calendar year, you also need a Teum Mas. You don’t need one if you have a business (Osek Patur or Murshe) and one salaried job. 

When should the Teum Mas be done?

A Teum Mas is best done at the beginning of the calendar year, since that’s a new tax year. If you didn’t do it right away, you have until the end of the year to fill it out and receive a tax refund. However, after the end of the calendar year, you can no longer do a Teum Mas for the previous year.

If you are still working for the same employers as the previous year, your Teum Mas will be kept temporarily for January and February, but if you haven’t filled out a new one by then, you will be taxed the highest rate starting in March.

How do you do a Teum Mas?

  1. Ask your employers for their Tik Nikuyim (employee file) number. You won’t be able to fill out the form without this information. (If your other income was unemployment, you will need proof of payment from Bituach Leumi instead of a Tik Nikuyim.)
  2. Sign up for the income tax website and receive an identification code.
  3. Sign in to the website and fill out the form. Some of the information (such as the number of children you have) will already be in the system. Check that everything is accurate and enter the information about your employers, including estimated annual salary.
  4. You will either receive the Teum Mas immediately or within 5 days. Download the documents and send each employer their instructions.
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Employment in Israel

I’ve Been Offered a US Job – Now What?

Congratulations! It’s always exciting to get a job offer. Before you start a job with an American company, you’ll want to take these steps to ensure that you are legally compliant and earning what you need:

Compare salaries

Once you have an offer from the US job in hand, take a look at salary survey sites and ask friends in similar positions if the salary you’re being offered is appropriate, and check what the salary would be for the same job in Israel. You’ll incur extra expenses by working for a US company, and you don’t want to lose out by making that choice.

Clarify terms

When you work in an Israeli job, you are legally entitled to a certain amount of vacation days, sick days and parental leave. If your company is more generous than the law requires, the terms will, of course, be delineated in your contract. Before you take an American job, clarify how they deal with vacation, medical issues and birth. Make sure that the terms are acceptable to you and that, if they are less generous than what you would get from an Israeli job, that the tradeoff is worthwhile. 

Calculate your expenses

When you work in Israel, you have to pay taxes here, regardless of what country the salary comes from. You can do this by setting yourself up as a freelancer here in Israel or by becoming an employee of an Employer of Record service like Route 38. Before deciding which direction to go in, you need to know how much you will be paying in each scenario for:

  • Income tax
  • Bituach Leumi
  • Pension
  • Accounting fees (as a freelancer) or processing fees (through an EOR)


Once you have the numbers, you can see which scenario provides you with more take-home pay and make an informed decision.

Since these calculations are complex, we recommend speaking to an accountant who is well-versed in these issues and/or booking a consultation with us by emailing info@route38.co.il. We will honestly assess your situation and give you the best advice for your individual situation.

Get set up

Income tax, Bituach Leumi and pension are paid from the first shekel earned, so you need to set up your income structure before you begin the American job. If you have chosen to go the freelance route, you need to open files at the VAT office and Bituach Leumi. If you have an existing pension fund, you can have it transferred over to your business entity. If you prefer to start a new one or have never had one, set this up as well. Although you can do these things on your own, most people hire an accountant or tax consultant to deal with the bureaucracy.

If you choose to work with Route 38, you will have to get your employer on board and have them sign a contract with Route 38. There is no need to open files at VAT or Bituach Leumi (since we pay these and deduct them from your salary) but you do need to set up a pension fund. This can be done through our insurance agent or independently. 

Start working

Now that you are legally compliant, you can start working at your US job. Find a comfortable workstation, set up your software and dive right in. Enjoy the advantages of remote work and a career that fulfills and excites you.  

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Employment in Israel

6 Ways Making Aliyah Can Benefit Your Career

One of the biggest questions that potential olim have is what will happen to their careers once they make aliyah. This is especially acute for people who have established and successful careers in their home countries and are fearful that they will have to take a step down when they move to Israel. Although this may sometimes be true, there are also olim whose careers have advanced and/or who enjoy their current work situation much more than the one they had before aliyah. Here are some ways that aliyah can benefit your career.

Expertise that’s not common in Israel 

If your expertise is less common in Israel, you may be in high demand in the Israeli job market. If you are well-established and experienced in your field, it’s likely that you have skills that are valuable to Israeli companies. A CV which emphasizes these skills and demonstrates your expertise can help catapult your career to new levels.

For instance, according to Nefesh B’Nefesh, physicians with specialties such as family medicine, pediatrics, female gynecologists, geriatrics, radiology, internal medicine, nuclear medicine, anesthesiology, neonatology, nephrology, neurology, pathology, and surgery are in high demand in Israel.

English-speakers are in high demand

Native English is a skill that opens many doors in the Israeli job market. In addition to teaching English and content writing, many other jobs are available to English speakers. These include careers in marketing, project management, customer relations, sales, grant writing and fundraising. 

Any company with international clients or a nonprofit with overseas donors needs English speakers to interact with them. The ability to send well-written emails, run meetings and present in English is a sought-after skill that will make you more attractive to potential employers.

Change of career 

A move to Israel is often an opportunity to switch careers and reinvent yourself. If you’re not happy with your current career path or your job doesn’t easily translate to the Israeli market, aliyah is a good time to make a change. 

Israeli society is less classist in general and certainly when it comes to careers, so there is a large variety of professions that you may not have considered before aliyah. And if you have a passion you haven’t yet explored, think about opening a business and becoming your own boss.

Vacation days that are aligned with Jewish holidays

One of the challenges that Jews living outside Israel face is that most of their vacation days are used up for Jewish holidays and they have to explain to incredulous bosses why they have to take off so many days for the various chagim. In Israel, Jewish holidays are automatic vacation days. You don’t have to make up those hours, use up your vacation days or beg your boss’ indulgence in order to celebrate. 

There are, of course, some jobs that require working on Shabbat and holidays, such as those that involve national security. But the vast majority of jobs are aligned with Jewish holidays, making for a smoother career path and a better work/life balance.

Protection for pregnancy and parental leave

Israeli law protects pregnant mothers and provides for maternity and paternity leave when a baby is born. It also protects parents from losing their jobs because they took parental leave. They cannot be fired within 60 days of returning to work, except under special circumstances (such as company-wide layoffs). This protection and the positive cultural attitudes surrounding parenthood make it easier for parents of young children to succeed and advance in their careers. 

More spending power if you keep your current job

In recent years, it has become very popular for people to bring their jobs with them when they make aliyah. If working remotely in your current job is an option, there are many reasons to consider it. It will ease your transition to Israel and be less disruptive to your career path. If your salary is significantly higher than what you would earn in a similar job in Israel, you’ll enjoy more spending power on the same salary.  

While the prospect of aliyah can be daunting, it’s important to remember that the Israeli job market has advanced along with the country’s general development and many olim enjoy satisfying and lucrative careers.

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Employment in Israel

5 Ways to Supplement Your Income

When your expenses exceed or are uncomfortably close to the income you’re bringing home, you can of course work on budgeting and cutting expenses. But another avenue to solve this problem is by supplementing your income. There are 5 common ways this is done in Israel: 

  1. Open a side business – Whether you are already an entrepreneur or an employee, a side business can bring in that extra income you’re looking for. Do you have a talent or a hobby you can turn into a business? Are your friends always asking for your help with something? That might be a service that is needed in your community. Don’t forget to consult an accountant before starting a business, to ensure you are legally compliant and set up for success.
  1. Take a second jobWorking more than one job is common in Israel, especially if neither job is full-time. Many people work one job in the mornings and another in the afternoons. If your main job takes up a full day, maybe you have time in the evenings for a few hours of remote work or babysitting. If you’re in a profession with time off on school vacations, consider working on those days for businesses that have extra traffic when school is out. Make sure you let the tax authorities know that you have two jobs and fill out a Teum Mas so you pay the right amount of taxes on each income.
  1. Raise your rates – If you work for yourself, raising your prices is an effective way to increase your income. Don’t be afraid that the market in Israel can’t bear higher prices. When you charge more, you let customers know that your product or service is higher quality and worth the investment. As you gain experience and perfect your offerings, you should raise your rates accordingly.
  2. Ask for a raise – As an employee, you have less control over the salary you receive, but Israeli employers aren’t necessarily going to promote you or give you a raise if you don’t ask. At your annual review or another opportune time, present your accomplishments in the job and ask for that raise. If you get an emphatic no, it may be time to start looking around for other opportunities in your field which offer room for advancement.
  3. Invest – If you’ve got some money saved up, investing it can generate passive income for you. Many investment opportunities require a sizable sum, but there are some that will allow you to invest smaller sums. Investing is best done with professional advice, especially if you’re an American citizen and have to avoid certain types of investments for tax purposes. 
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Employment in Israel

Do Israeli Companies Want Cover Letters?

This is actually a controversial question! Many Israeli HR professionals say they don’t read them and that writing one is a waste of time. Other hiring managers say that they do read them and that they help them get a better feel for the candidate. 

In some cases, the application system or the job ad request a cover letter. In these cases, it is important to include one, since HR managers may discount your application simply because you didn’t follow directions. If a cover letter was not requested, it’s best to write a short text in the body of the email in which you attach your CV and not include a cover letter in a separate document.

What to include in an Israeli cover letter

The cover letter should not be a regurgitation of what you’ve already written in your CV. Instead, write a few sentences that include things that don’t appear on the resume, such as:

  • Why you’re right for this job – what skills you have that are important for the job and what sets you apart from other candidates
  • If you have informal experience which is relevant to the job, this is the place to include it
  • Express enthusiasm for the position and show that you’ve done some research about the company by mentioning that you connect to their mission or they type of work they do

Formatting the cover email

Start the letter with Dear X, if you know the hiring manager’s name. If not, Dear Hiring Manager works too. Don’t use Dear Sir/Madam or To Whom It May Concern, as those are old fashioned ways of addressing a letter. On the other hand, Hi or Hello might be considered too informal.

After introducing yourself, format the body of the email with bullet points, numbers or moderate use of bold to make the main points stand out. This is important because the hiring manager is probably skimming and not actually reading.

Mention that your CV is attached, just in case the recipient didn’t notice it. And don’t forget to thank them for their time.

Keep it brief – no more than 3-4 sentences total. HR professionals are short on time and you want to respect that. 

Apply through a friend

Hiring managers agree that the best way to get your CV to the top of the pile in an Israeli company is by applying through an employee already working there. A recommendation from a friend (or a friend of a friend) is worth more than a well-written cover letter.

Many companies offer their employees bonuses if they refer new employees. Even if not, they will get brownie points for bringing in someone good. Add to that the Israeli tendency to want to help others (we are a nation of chesed, after all) and you are likely to find that even tenuous connections will be happy to pass on your CV. In any case, it doesn’t hurt to ask.

Wishing you luck in your job search!

You may also find these articles helpful:

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Employment in Israel

Travel Expenses in Israeli Labor Law

As an employee in Israel, you are legally entitled to a refund on travel expenses unless your employer arranges transportation for you. The refund is for the amount it would cost you to get to work and back on public transportation, up to a cap of 22.60 NIS per day or the price of a monthly ticket, whichever amount is lower. This amount is calculated according to the amount you would be charged and takes into account any discount you might have, such as a senior citizen or student rate. You cannot waive the right to receive travel expenses and the refund is considered taxable income.

If you need to get to work or back home at times when there is no public transportation, such as national holidays, Shabbat or late at night, you are entitled to 22.60 NIS for each of those days, unless a different arrangement was made in the employment contract.

When you live 500 meters or less from work, you don’t get travel expenses, because it is assumed that you can walk to work. A person who is unable to walk, such as someone with a physical handicap, is an exception to this case. If you are entitled to free rides on public transportation (such as if you’re 75+ years old) you will not receive travel expenses.

Travel expenses are paid only on days when you come to work. If you stay at the job location on some nights (for instance, a hotel employee or a security guard), you would only receive a refund for days you actually went home.

When public transportation isn’t used, for example, if you decide to walk or come in your car, you are still entitled to the refund. 

You don’t need to take any steps to get your travel expenses refunded; this is taken care of by the employer, based on the home address you provided them. As always, you should check your pay stubs and make sure this payment is included in your salary.

Travel time

Generally, travel to and from work is not considered work time and is not paid. Even if you travel abroad for business, you are only entitled to payment for time you’re on the flight if it’s during hours when you would usually be working. 

The exception to this rule is if you were asked by your employer to travel to a specific location, such as a client’s office, in which case, travel time would be considered work time. 

You and your employer can, of course, make a different agreement, in which travel time is included in your work hours. You might want to bring this up with your employer if you frequently travel outside of regular work hours.

Food and accommodations

Legally, employers don’t have to reimburse expenses on business trips abroad or inside Israel, but many companies have policies that cover food and accommodations, either according to receipts saved by the employee or by an honor system. This refund is called Eshel (an acronym for food, drink and sleep). Before going on a business trip, clarify the policy with HR and be sure to keep records and save receipts for relevant expenses.

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Employment in Israel

Job Perks in Israeli Companies

Israeli law is very specific about employee rights and many companies provide only what the government requires. But this is not the case in every job. There are many job perks that might be offered by Israeli companies, and it is worth finding out what is prevalent in your industry and what a potential employer offers before accepting a job.

Some of the perks that are offered are worth actual money, so they should be considered when you decide whether the salary you’re being paid is acceptable. Job perks might include:

Holiday gifts

In some companies, gifts are given to employees before Rosh Hashanah and before Pesach (or before one or the other). These gifts can range from something small and symbolic to something relatively expensive. Some companies give cash bonuses or gift cards but many will give actual gifts and allow you to choose from a few options. 

Cibus or 10bis

Some companies, especially in the hi-tech industry, provide employees a stipend for purchasing meals through either the Cibus or 10bis app. Employees order in lunch and don’t need to go out to get a meal, so this keeps employees focused on work and taking shorter lunch breaks. Be aware that employers have different policies about using these cards, and some will only allow their use when the employee is actually in the office.

Kitchen full of food and snacks

Another way to keep employees well-fed, satisfied and focused on work is to keep a kitchen full of basic food items and snacks. Some companies will provide fixings for sandwiches, crackers, cookies, potato chips etc. They may also have a sandwich maker, microwave, refrigerator and coffee machine.

Keren Hishtalmut 

Many companies offer their employees the option to receive a Keren Hishtalmut (education fund). Although originally meant for the purpose of professional training, this is basically a tax-free savings plan with contributions made both by the employer and the employee. After three years, the funds can be withdrawn for educational purposes and after six years, for any purpose. Contributing to a Keren Hishtalmut is less expensive for the employer than raising the employee’s salary, so it can be a win-win for both sides.

Equity or options

Start-ups which are strapped for cash might offer stock options or equity in the company instead of a higher salary. This perk is more of a gamble; if you believe in the product and the founders, you may want to take the risk that this will pay off in the future.

Professional courses

Some employers will pay for professional training and may even allow you to take these courses during regular work hours. Professional courses are a long-term investment in your career, since they increase your employability and are likely to lead to a higher salary in your next job or a promotion in your current one. 

In the field of education, professional courses aren’t free but they are heavily subsidized and the more courses you take, the higher your salary.

Phone and computer

Since the world has moved heavily to portable devices, employers often provide the employee with a phone or computer that they can use both at work and at home. Of course, mobile devices may also come with the expectation that you will be available for work outside the normal work hours. When you terminate your employment (or it is terminated), you will likely be offered the option of buying the device at a discounted price. Otherwise, you will have to return it.

Car lease

In order to make it easier for employees to get to work on time, your company might offer the option of leasing a car through whichever leasing company they use. This is an attractive offer, since there is usually a gas allowance and maintenance included in the price. But you really need to do your research and see if the deal you are being offered is better financially than buying a fairly new second-hand car. When you leave the job, you will have to return the car or buy it from the leasing company. 

Private health insurance

Although basic services are provided by the government-run Kupot Cholim (health clinics), many Israelis have private health and/or dental insurance to supplement the basics. In select companies, private insurance is offered to employees. Hopefully you will never actually need it, but if you do, it can be worth quite a lot of money and save time and aggravation in getting necessary medical treatment. 

Vacation days 

Current laws mandate 12 mandatory vacation days in addition to national holidays. Any vacation days above that amount, assuming the employer allows you to take them, are unpaid. In senior positions in most companies, employees are offered more generous vacation packages. You might get a few extra days a year or even enjoy unlimited vacation days. The idea of unlimited days is that as long as the work is getting done, the employer is not concerned with when it is done. Paradoxically, employees with unlimited vacation days often take less vacation because they feel more guilty when they take time off.

When you look at the number of vacation days you’re getting, you also need to ask about compulsory vacation. Israeli law allows employers to close their offices and send everyone on vacation, and these days are deducted from the annual vacation days due to each worker. Common times that this is done include Erev Chag (the day before a Jewish holiday), Chol Hamoed (intermediary days of Sukkot and Pesach) and the end of August.

Sick days from day one

According to Israeli law, if you take one sick day, you are not paid for it. The second and third days are 50% pay and the fourth and on are 100% pay. A perk that you may be able to get is to be paid from the first sick day. This will make it more feasible to take one day off when you’re not feeling well but don’t have a serious illness, without being financially penalized.

Unions and discounts

Certain industries are unionized. Unions fight for employee rights in general and also offer their members discounts on various attractions, hotels, cultural events, products and services. Unions service educators, government and military personnel, healthcare workers and more.

Hybrid work and flexible work hours

In recent years, it has become increasingly popular for employers to require less time in the office and allow for partial or complete work from home, as well as flexibility in when the required hours are worked. Hybrid work can be important if you live far from your office and flexible work hours are important for parents and for people who do their best work outside conventional hours. Even one day a week at home can break up the work week and stave off exhaustion from commuting and office interactions.

Gym or fitness classes

Large companies sometimes have gym facilities on the premises or offer fitness classes to their employees. If exercise is an important part of your lifestyle, having these options at your fingertips without having to travel to another location or paying for a membership can be a significant perk.

Fun days for employees or for employees’ families

This one is a little controversial, because not everyone likes company fun days. Israeli companies see them as opportunities for promoting team spirit and encouraging collaboration. If you enjoy interacting socially with colleagues, these fun days can be a nice perk. If you don’t enjoy them or they are scheduled at inconvenient times outside of work hours, you might see them as more of a burden (especially since you are usually required or strongly encouraged to attend). 

There are some companies where fun days are organized for employees along with their families. These can be great activities to bring kids to, saving you from organizing and paying for something for your kids to do during school vacation.

Remember that not all jobs and not all industries will be rich in perks. Some will stick pretty closely to what’s required by law, while others will be more generous. You have to weigh the value of the perks against the salary, job satisfaction and work-life balance when making a decision about taking or staying at a job. When negotiating a salary, keep in mind that perks cost the company less than a higher salary, so when a potential employer won’t budge on the amount they’re offering, you can often ask for and receive some extra perks. 

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Employment in Israel

Working for a Nonprofit in Israel

Considering working for a nonprofit in Israel? Here’s what you need to know before you go down that career path.

Advantages of nonprofit work in Israel

  • Working in the nonprofit sector in Israel is a fulfilling career, because you can go to work every day and make a difference to the Israeli society, economy and/or political landscape. Nonprofits run the gamut from organizations that feed the poor to those that promote diversity, encourage dialogue or protect political interests. There are organizations that support terror victims, soldiers, religious institutions, children at risk and so much more.
  • Nonprofits often require fewer working hours than careers in hi-tech, medicine etc., making for a better work-life balance. They tend not to expect overtime hours and assume that, in most cases, you leave work behind at the end of the workday and pick it up again the next morning.
  • Because most Israeli nonprofits are at least partially funded by overseas donations, English-speaking staff are often sought after for positions such as fundraising, grant writing, content writing, donor relations and marketing.
  • Although there are fewer jobs available in the nonprofit sector than in hi-tech, there are still plenty of openings, especially in the Jerusalem area where many organizations are based. If you have nonprofit experience and/or excellent writing and communication, there are organizations looking for these skills.

Disadvantages of working in an Israeli nonprofit

  • Salaries in the nonprofit sector are lower than the for-profit sector and significantly less than the hi-tech industry, except at the senior management level. CEOs and experienced fundraisers at nonprofits are often well-paid, but this doesn’t necessarily translate to better salaries for the majority of the staff.
  • Jobs at the senior level are highly competitive and rarely advertised. Instead, they are obtained through word of mouth or protexia (connections). If you have just arrived in Israel and haven’t built up a network yet, it will be hard to find this type of job. Whether you have already made aliyah or are still in the planning stages, you will need to create a network if you want a high-level nonprofit position.
  • Nonprofits generally have smaller budgets, leading to understaffing and the expectation that one employee will do a variety of tasks that would be assigned to a number of people in a for-profit organization. If you’re the sole English-speaker in the office, you might be asked to translate texts or show donors around, even if these tasks are not covered by your job description. However, if you are the kind of person that thinks wearing many hats keeps things interesting, this could actually be an advantage.
  • Gifts, fun days, holiday parties, bonuses and other job perks are more common in for-profit companies than in not for profits. If you got used to these types of benefits in your previous job, you might be disappointed by their absence in a nonprofit position.

How to get a nonprofit job in Israel

As mentioned above, networking is a great way to find a nonprofit job, especially on the management level. You can also look for a job in the traditional way, particularly for non-management positions. Job boards like Nefesh B’Nefesh and Facebook groups for English-speakers are a good place to start your search. Don’t forget to let people know what type of position you are seeking, since you never know when something suitable will come across their desk. If your job search is public, you can even make an announcement on social media. Otherwise, contact friends privately and put out discreet feelers.

Wishing you a successful job hunt and a career that fulfills and inspires you!

Categories
Employment in Israel

Navigating the Question of Salary Expectations

If you’ve ever been interviewed in Israel, you have probably experienced the scariest question of them all: “What are your salary expectations?” This question strikes fear in the hearts of job seekers everywhere, because the wrong answer can have far-reaching consequences. If you quote too high, you risk losing the job altogether. But if you quote too low, they might take you up on it and underpay you for months or years to come.

Unfortunately, if you are asked this question point-blank you do have to give an answer, so here are some tips on navigating this issue.

Market research

You will be in a much better position to discuss salary expectations if you’ve done some market research and know what salaries are common for people in your position. It can also help to know if the company you are interviewing at tends to be generous or frugal in its salaries. You can look for this type of information on websites where people anonymously report their salaries, in articles posted online about careers or by asking people to share their first or second-hand knowledge. Most Israelis will not tell you their salaries (or share information that will help you guess it) in a public forum, but many will be happy to share privately if they know they are helping out a fellow colleague. Ask publicly, but stress that you are open to discuss via private message.

Don’t undersell yourself

Women, especially, have a tendency to undervalue their work and ask for lower salaries (and more modest raises), so they often find themselves making less than their male colleagues and sometimes even less than their subordinates. Before going to an interview and answering that dreaded question about salary expectations, try out your quote on friends, family or former colleagues and get their reactions. Saying it out loud also helps you be more confident about the quote so you don’t sound wishy-washy in the interview. 

Don’t answer too quickly

In some Israeli job interviews, you are asked your salary expectations before you have even gotten any details about the job. If that happens to you, ask for more information about the responsibilities of the position before answering. You may have to adjust your expectations based on what they tell you about the job. For instance, if you didn’t know the job included management and are now being informed it does, ask for a higher salary than you originally planned.

Quote a range

Your salary expectation doesn’t have to be a specific number. You can say that you are looking for a salary between x and y. Obviously, the lower number should still be acceptable to you, since they may very well end up offering that to you. The higher number should be higher than you actually expect to get, so they can negotiate you down. 

Stress your flexibility

Another way to approach this question is to quote a number on the higher side and stress that you are flexible. If the number is way above what they want to pay, this job is likely not for you. But if it’s above their range but not obscenely so, they will jump on your flexibility and begin a negotiation. Once they start negotiating, remember that you can ask for benefits like sick days from day one, more vacation days and Keren Hishtalmut, in lieu of a higher salary. 

Use your current or previous salary as a marker

Switching jobs is an opportunity to raise your salary. When asked about salary expectations, you can say that at your current or previous place of employment you were making x and would like to improve upon that. This is a reasonable answer, since employers expect that you are looking to increase your salary in your new job. If you were paid market value before and spent a few years at a job, a higher salary is certainly in the cards. Obviously, this strategy won’t benefit you if you were being severely underpaid in your previous position!

Turn the question back on the employer

This advice comes with a caveat, as many have reported that they tried it and it didn’t work. But others have had good experiences with answering the question with a question of their own. When the employer asks your salary expectations, ask them what range they have in mind for the position. Sometimes they will tell you and then you can try to get the higher end of that range. Often, they will still insist that you quote a salary without them giving anything away, at which point you will have to give a more direct answer. 

Negotiate in the HR interview

Many Israeli hiring processes include an initial interview with your potential manager, followed by an interview with the HR department. That second interview is where serious salary negotiations happen. If you think you lowballed yourself in the previous discussion of salary or want extra benefits, this is the time to ask for what you want. If you change your quote drastically from what you initially said, you risk losing the position, but if you say that you thought it through or did more research and would like slightly more, you may very well receive it. The company wants to hire you at this point, so you have some negotiating power and you should take advantage of it. 

It’s not easy to navigate the question of salary expectations, but these strategies should help you answer the question confidently and get the salary you deserve.

Categories
Employment in Israel

Interviewing While Pregnant

The rules for telling a potential employer about a pregnancy are similar to telling a current employer. A woman is not obligated to divulge that she is pregnant until the fifth month, except in a case where the pregnancy affects the job, for instance, if the job requires physical exertion or exposure to dangerous chemicals. If the woman is interviewing for a specific amount of time or for a project with a deadline which will be affected by her maternity leave, she is required to disclose her pregnancy before accepting the job.

If a woman does mention in the hiring process that she is pregnant, the employer is legally not allowed to discriminate against her when deciding whether to hire her. However, this type of discrimination still happens, since employers are worried about being left high and dry soon after training and onboarding a new employee. And it’s hard to prove that you weren’t hired due to your pregnancy, since the company can claim that there were better candidates or that you weren’t hired for other professional reasons.

Is it a good idea to keep a pregnancy to yourself?

You might feel that it’s dishonest not to let the employer know you are pregnant and that you want to start your working relationship with complete honesty. Before you decide to let them know, keep in mind that the law recognizes that pregnancy is a private matter and need not be shared until it’s relevant to the workplace. There have been enough cases of companies rescinding offers when they hear about a pregnancy (despite it being illegal), so it’s not really worth the risk.

There are some women who feel that disclosing their pregnancy is a good way to test whether the company will be supportive of pregnancy, maternity leave and parenting issues. If you’re thinking this way, consider how much you need a job. If you’re willing to wait it out until you find a super-supportive employer, by all means, tell them you’re pregnant. But if you need a salary now, worry about their supportiveness later. Take the job, enjoy your legal rights, and if the job isn’t a good fit for the work-life balance you need, you can always leave at a later date.

Bottom line, a potential employer is not allowed to ask you questions about pregnancy or discriminate based on it before the fifth month, and you are fully within your rights not to tell them until you are five months along.

Categories
Employment in Israel

5 Ways to Advance Your Career in Israel

Feeling stuck in your career? Want to move forward but aren’t sure how? Here are 5 ways you advance your career in Israel.

Plan your career path

In order to advance your career, you need to know where you are headed. Determining your short-term and long-term goals is the first step in accomplishing them. Do you want to move up to management? Do you prefer a more flexible work schedule or a higher salary? Are you interested in a different position than you have now (or even a totally different career)?

Once you have broader goals, narrow them down to actionable items. 

Let’s say you want a raise. How will you prove to your manager that you deserve one? Volunteering for projects, finishing tasks before the deadline and speaking up in meetings are all ways to demonstrate your worth to the company.

When is the right time to ask? Some companies in Israel do salary reviews at the end of the calendar year, while others do them individually for employees based on the length of their employment in the company. Still others don’t do them at all, so you won’t get a raise if you don’t ask. Figure out when you should approach this at your workplace and don’t miss the opportunity.

Learn new skills

The more skills you have, the more sought-out you will be as an employee. Upping your game by learning new skills, either in your industry or in a totally new one, can give your career that extra boost. You can do this by taking professional courses or by getting involved in work projects that require you to learn aspects of the business you haven’t previously experienced.

Build a network

In Israel, it’s all about who you know. Online and offline networks are the best source of job opportunities and resources. Have a professional question you need answered or a connection to a professional? When you have a strong network, you can accomplish things that you didn’t know you could and impress your bosses in the process. 

Olim often feel like they are behind in the networking game, since they don’t have connections from grade school or the army, but anyone can build a network if they devote time and energy to it. Giving freely of your time and expertise puts good karma out into the universe and often encourages others to reciprocate.

Keep your LinkedIn profile up-to-date

A common mistake is to neglect your LinkedIn profile when you’re happily employed. Since you never know what the future brings, it’s recommended to keep your profile up-to-date with relevant information about your position and skills. Israeli headhunters and recruiters scour LinkedIn for candidates for jobs, even those who haven’t announced that they are looking for work. You’ll never know what’s around the corner if you don’t present yourself optimally online.

Don’t get too comfortable

Knowing that it can be challenging to get a job after aliyah, you may have taken the first job that offered reasonable conditions. But a few years down the line, it is time to increase your income, move up the corporate ladder and enjoy better work conditions. 

In today’s job market, many companies prefer to recruit new talent instead of promoting from within. If that’s the case in your workplace, it may be that the only way to get a raise and better position is by looking elsewhere. Although in the past it was common to stick with one job for many years, today it’s perfectly acceptable to switch jobs every few years. When you feel you have gotten as far as you can get in your current job, start looking around for something else. You will likely be pleasantly surprised to discover what’s out there.

Categories
Employment in Israel

Is Hi-Tech All It’s Cracked Up to Be?

You’ll often hear Israelis (especially Anglo-Israelis) say that the best jobs in Israel are those that are in the hi-tech sector. The main reason cited is that hi-tech salaries tend to be higher than jobs in many other industries. 

Salaries in hi-tech vs. other industries

The average salary in Israel as of January 2024 was 12,942 NIS a month, while the average salary in hi-tech was 30,126. That’s a difference of over 17,000 shekel! In addition to the high salaries, some hi-tech jobs come with perks like food vouchers and car leases that make them even more attractive.  

While salaries do tend to be high in the hi-tech industry, the amount of money that is deposited into your bank account is not the only factor to take into account when judging the advantages of a job.

Job security

One of the reasons that the average salary in hi-tech is so high is that in times of crisis (such as war) the lower-paid employees get laid off and are not replaced. The hi-tech industry is very competitive, so companies don’t feel pressured to retain employees when they can easily replace them. In fact, it’s rare to find people who have been employed at the same hi-tech company for many years, whether because they were fired or because they quit when they saw they weren’t getting promoted or receiving raises at their previous place of employment.

Long hours

A frequent complaint of hi-tech workers is that the hours are grueling. In addition to the fact that most hi-tech jobs require full time hours (42 a week), many also expect overtime and availability by phone/WhatsApp/email during non-work hours. Sometimes you are expected to work until a certain hour no matter when you have gotten into work, to overlap with other employees who have come in later. These long hours can cut into work-life balance and be especially difficult for parents of young children.

On the other hand, in the aftermath of Covid many hi-tech companies have implemented hybrid  and remote work policies, cutting down on commute and reducing the amount of time spent away from home.

High pressure

A lot of hi-tech jobs are pretty high pressure, with expectations that may be unrealistic. Sometimes this is a factor of two few employees doing too much work, sometimes it’s a result of ineffective planning and occasionally it’s just the work culture in a particular company. This kind of pressure can cause you to feel frustrated, anxious and worried about your job security.

Of course, many other jobs are also high pressure without the high salary and perks that come with hi-tech work, and this issue isn’t exclusive to only one industry.

Is hi-tech right for you?

If you thrive on long hours (or at least don’t mind them), aren’t nervous about switching jobs periodically and don’t get too worked up over pressure at work, hi-tech might be the right fit. You’ll also need an affinity for the skills that are needed in the hi-tech world – programming, cybersecurity, website development, marketing, technical writing etc. You will need either a degree in a relevant field or a certificate from a recognized and respected institution. 

Many olim find that aliyah provides a good opportunity to switch careers. If you’re in that mindset, consider retraining in a field that will serve you in the hi-tech industry. If hi-tech is definitely not the right direction for you, another way to earn a higher than average salary is by finding a remote job for an American company.

Whatever you choose, we wish you a successful and fruitful career here in Israel.

Categories
Employment in Israel

Switching from Freelancer to Employee

Freelancing isn’t for everyone and it isn’t for every stage of life. Market shifts, changes in your lifestyle or a better understanding of your work preferences are all good reasons to close your freelance business and enter the job market. If, for whatever reason, you have decided to leave freelancing, it’s important to go about it the right way. 

Interviewing for a job 

When you interview for a job, you will likely be asked why you decided to leave the freelance world and seek employment. This question may reflect hesitation on the part of your potential employer, who is worried that you don’t like authority or that you’re compromising on a job when you really want to freelance.

It’s OK to tell an interviewer that you loved the work you were doing but didn’t like running a business. Don’t worry about sounding like a failure. This answer makes it clear that you are an employee at heart and that you are choosing a job because it’s what’s best for you. However, when asked why you want this job, don’t say you’re looking for a steady paycheck. Instead, emphasize what excites you about the work itself.

For more tips on getting a job in Israel, see The Hiring Process in Israel and How to Get a Job in Israel.

Closing your business

Once you get a job as an employee, you need to close your business. This is important so you don’t incur expenses for a business that’s no longer operating. Start by filling out Form 18 for the VAT office, or, in the case of an Osek Patur, an online Hatzharat Osek Patur. Form 18 must be sent to your local VAT office and must include information about any equipment, inventory or property you still have in your possession.

Next, fill out Form 6101 for Bituach Leumi and 2550 for the Tax Authority. These can be done online, although it is prudent to go to the Tax Authority in person to ensure that everything was reported and closed properly. 

If you have a business bank account, shut it down so you aren’t paying extra fees on an account you don’t need. Keep records and receipts for seven years, in case you are audited by the Tax authority.

Adjusting to your new job

Even if you are very sure that you want to work as an employee, there will be a period of adjustment. You have to get used to having a boss and possibly an entire office hierarchy. You’ll have to adjust to asking for time off instead of just taking it when you feel like it. Your salary will likely look smaller, since freelancers have to make about 1.4 times more than employees to take home the same amount. Give it some time and focus on the advantages of having less responsibility, a steady paycheck and a new challenge.

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Employment in Israel

Unpaid Leave and Your Rights

Unpaid leave in Israel is a situation in which you are not working temporarily and not receiving a salary but are still officially employed by the company. Whether this situation was of your choosing or decided upon by your employer, you do have rights which must not be impinged on.

When unpaid leave is taken

Unpaid leave can be taken when you need time off due to illness (beyond regular sick days), a trip, extension of maternity leave etc. It can also be suggested by the employer, when there isn’t enough work or funds to pay salaries but there is hope that the financial status of the company will improve and the job will become viable again. This type of leave was widespread during Covid and has also been implemented during Iron Swords, especially in the tourism industry which took a big hit due to the war.

Unpaid leave can only be taken with the consent of both the employee and the employer. The only case in which the employer doesn’t have to agree is when a new mother extends her maternity leave. Legally, she can take up to a quarter of the time she has been working at the same place of business, but not more than a year.

If an employer forces you to take unpaid leave, you are within your rights to quit, claim deterioration of work conditions and be treated as if you were fired, as long as you notify the employer of your intention to quit for this reason and give them a chance to rectify matters. If the leave is lengthy and has no end date, this is equivalent to firing you.

When permission is required

There are some situations in which an employer can instigate unpaid leave only with special permission from the office responsible for women’s labor law:

  • Pregnant woman
  • Mother or father on parental leave
  • Employee (male or female) undergoing fertility treatments
  • Potential parent
  • Person in the process of fostering a child
  • A woman residing in a shelter for victims of domestic violence 

Financial rights

While on unpaid leave, you don’t get a salary, of course (that’s the unpaid part), but you are paid for sick days and vacation days you aren’t using. If your employer puts you on unpaid leave for his own purposes, you can collect unemployment if the leave lasts longer than 30 days. 

Your employer is not responsible for paying any perks, like use of company property or holiday gifts during the period of unpaid leave.

Seniority

Your seniority status at the company will not be lost during unpaid leave but you won’t accrue more. Seniority for severance pay continues if the leave is up to 14 days long; after 14 days, the period of leave is not counted as work time, and you won’t get severance for it.

Pension

Your employer is not obligated to pay your pension during unpaid leave, but they are responsible for informing your management company that it is not being paid. In order to avoid losing certain benefits, contact your pension company and arrange to pay the minimum amount that keeps the fund active.

Bituach Leumi

If you are on unpaid leave for more than two complete calendar months, your employer pays Bituach Leumi for two months as if you were working for minimum wage. If you worked for part of each of those months, Bituach Leumi will be withdrawn from your salary as usual. After two months, you need to arrange to pay Bituach Leumi directly unless you are collecting unemployment, in which case it will be withdrawn automatically.

Income tax

When you return to your job, you will likely be owed income tax, since in the months previous to your leave you paid a percentage on the assumption that you would be working a full year. In a situation where you were collecting unemployment, you may not be eligible for a refund. When you return to work, bring your Bituach Leumi payment statements to your employer and ask if you are owed. If you were supposed to receive a refund, but it didn’t show up automatically in your salary, file taxes at the end of the calendar year for a recalculation.  

Going back to work

When you return to work, you must have the same work conditions as before, but you don’t necessarily have to be returned to the same position. The employer is allowed to restructure the workplace in your absence and assign you a different job, providing that your salary and other work conditions stay the same. If conditions have deteriorated, you are within your rights to quit and be considered as fired.

Categories
Employment in Israel

What Happens to My Pension when I Switch Jobs?

When you start your first job in Israel, the company is obligated to deposit funds into a pension plan once you have been there for 6 months. The minimum contribution is 18.5%, 6% of which is deducted from your salary and the rest is paid by your employer. This includes both pension and severance pay. Some contracts will have something called Seif 14, which raises the severance pay to 8.33%, paid for by the employer.

But what happens when you switch jobs?

Your new employer is obligated to deposit into your pension fund once you have been employed for three months or at the end of the calendar year, whichever one comes first. They must pay into your pension retroactively, from your first day of employment. 

Most employers have a pension company that they work with and they may recommend that you switch to that company. However, you are under no obligation to do so and you can ask them to deposit into the plan you already have from your previous job.

The differences between pension plans are hard to understand on your own and it’s generally recommended that you consult with an insurance agent who specializes in pensions to determine whether you should switch or stay where you are. Be aware that many insurance agents are salespeople for a specific pension plan and are not objective professionals.

If you are keeping your previous plan, you must notify them that you are now working for a new employer. This can be done via your agent or directly by you. Next, provide your employer with the name of the plan and your account number. Always check that deposits are being made, since mistakes have been known to happen.

Employment gaps and your pension

Sometimes you don’t go directly from one job to the next. It may take you a while to find your next challenge, or maybe you decided to take a break from working for a little while for personal reasons or for an extended maternity leave. In these cases, it’s important to note that if there are no deposits into your pension plan for five months, you will lose two crucial elements of this insurance: coverage if you are unable to work for medical reasons and allowances paid to your family members in the event of your demise.

In order to avoid losing these aspects of your pension plan, let your pension company know that you aren’t working and sign a form called Hesder Bituach, which allows you to pay a nominal fee to keep your plan active. You can set up a standing order (Horaat Keva) to pay this or have the amount deducted automatically from your savings in the fund. It’s also possible to pay a higher amount and add to your actual pension amount (this is often called Risk Zmani, or temporary risk). However, in most cases it is best to pay only the minimum to keep the insurance going, so as not to change the coverage amounts.

In both cases, once you start a new job and that employer pays into your plan, you retain your seniority and the conditions you previously had.

If you decide to open a business instead of getting a new job, consult with a trusted insurance agent to get advice on how to best continue your pension plan.

Severance pay

Included in your pension plan are funds that are earmarked for severance pay and can be withdrawn if you are fired and, in some cases, if you quit your job. This might be a good idea in a financial emergency, but the ideal is to leave them in the pension fund, since, at retirement age, that money will be about 40% of your retirement pay.

Withdrawing severance before retirement has two disadvantages:

  • It lowers the tax benefit when you retire by more than the amount you withdraw (for example, if you withdraw 100,000 ILS, the calculation is an added 35% + CPI (Madad HaMichirim LaTzarchan)
  • The money you withdraw will stop gaining from investments, and the gains when retiring will be subject to your income tax bracket and not a flat 25% fee like on other capital gains tax (Mas Rivchei Hon)

It’s recommended to consult with an accountant or tax advisor before making a decision to withdraw severance pay.

If you are due severance pay, your employer will give you Form 161, in which you request one of three options:

  1. Withdrawal of severance
  2. Addition of the severance pay to your retirement fund
  3. Leaving it in the fund and maintaining the right to withdraw it in the future as severance pay


If for some reason you are not given the form, the pay will automatically be added to your retirement fund.

Learn more about your pension

Your pension is an important part of your financial portfolio, so it’s important to understand how it works and what you will be paid upon retirement. More information is available in our article, How Do Pensions in Israel Work?

Thank you to Motty Handler, registered insurance agent, hmotty@gmail.com, for his help in writing this article.

Categories
Employment in Israel

Juggling Kids’ Schedules and Work – How Do Israelis Do It?

It might seem like one of the biggest mysteries of life in Israel: How do Israelis manage to work full-time when kids have such short days at school and so many things are scheduled during work hours? It’s not actually such a huge mystery; here’s how they do it.

After-school programs

Official school days are very short in most schools, but extracurricular activities often make up the difference. Younger children can be enrolled in “Tzaharon,” an afternoon program that provides hot lunch, activities and possibly even homework help. These programs generally run until 4 or 5 PM, and some of them are open on certain school vacation days. Tzaharon usually goes up to third grade, so older kids don’t have access to them. Instead, they may be enrolled in Chugim (extracurriculars) like sports, art, drama, English lessons and more. Chugim may be run by the schools or they may be at other locations, requiring transportation to be arranged. 

Staying home alone

In Israel, kids who are in fourth grade and above are considered old enough to stay home alone. Even younger kids can be home without parents if there are older children in the house who are responsible. Parents leave a meal that can be easily heated up in the microwave and kids serve themselves lunch. After lunch, kids will relax at home or walk to nearby Chugim.

Long and short work days

Parents in a dual-income household will often switch off coming home early (by 4 PM) with their spouse. Each parent will work some short days and make up those hours either by staying late at the office on other days, or by working from home in the evening after the kids go to bed. 

Grandparents and babysitters

Israelis tend to rely heavily on relatives, especially grandparents, to help out in the early evenings and on days when kids are on vacation but work is not. Those who don’t have grandparents who live nearby and are available for childcare will hire babysitters for hours between when kids come home and when the parents arrive. Often neighbors will help each other out as well, especially for a one-time issue or when the arrangement goes both ways.

Vacation and sick days

It’s expected that some of an employee’s vacation and sick days will be used for childcare. When kids are sick or have doctor’s appointments, sick days can be used to cover them. Taking off on days like Purim or Erev Chag because kids are home is accepted practice in most workplaces (with proper notice and permission given, of course). At the end of August, when there are almost no childcare options available other than babysitters, many parents choose to take time off. They often choose to travel or vacation in Israel during that time, although prices are higher that time of year. If they stay home, parents usually split the vacation days with their spouse, so there’s always one parent at work and one at home with the kids.

Israelis are family-minded in general, so many workplaces are understanding about the need to attend violin recitals, gan parties, army ceremonies and school plays. Israelis will definitely ask to leave early on days when these events are taking place and these requests are often granted.

Prioritizing

Israeli parents know they can’t do it all; they choose what to skimp on and what takes priority. They may buy processed food for their kids’ lunch or throw ingredients into a crockpot to cook on their own. They might relegate trips to the playground to the weekend or do laundry haphazardly. Each family will choose what’s important to them and what to let go of. As long as kids are healthy and happy, compromises can be made in other areas, so parents can work full-time and provide financially. 

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Employment in Israel

How to Collect Unemployment in Israel

It can be scary to find yourself suddenly without a job, but unemployment benefits are there to help tide you over and provide some income while you look for your next opportunity. Here’s what you need to know about collecting unemployment in Israel.

Eligibility for unemployment

You are eligible for unemployment if you meet these criteria:

  • An Israeli citizen
  • At least 20 years old (or meet the requirement for an exception, such as completion of army service or two years of National Service)
  • Below the age of 67
  • Have worked for a qualifying period. An employee who received a monthly salary must have worked 360 days out of the 540 days before becoming unemployed. A worker with a daily salary must have worked 300 days. Paid vacation days, sick days and maternity leave are all considered work days for this purpose.
  • Registered as unemployed at the Israeli Employment Service (Lishkat Taasukah). Sign up as soon as possible after you lose your job.
  • Willing to look into jobs or participate in job training provided by the Employment Service 

You are not eligible for unemployment if:

  • You are self-employed and have closed your business (unless you are a tour guide, lecturer or artist, in which case you might be eligible)
  • You are a controlling shareholder in a company, even if you are also a salaried worker
  • You are a member of a kibbutz or cooperative settlement, unless you are employed as a salaried worker (in the kibbutz/settlement or externally)
  • You are receiving any of these payments: maternity pay, workers comp, vacation day payout, payment for reserve duty in the IDF

If you were fired, your eligibility for unemployment begins immediately. If you quit, then your eligibility for unemployment only starts after 90 days unless your quitting was seen as justified. Justified reasons include worsening work conditions, health issues, a change in commuting distance or sexual harassment in the workplace.

Applying for unemployment

In order to apply for unemployment, you will need these forms from your employer: Form 100, which includes your income from the past 12 months and a form which states the date and reason of the end of your employment. 

If you have these forms ready right away, submit them here along with your application for unemployment. If you don’t have the forms yet, you can sign up immediately with Lishkat Taasukah and apply for payments later on.

Once you have applied online, you must appear at the Lishkat Taasukah within 14 days. You will need to bring ID: your Teudat Zehut, passport or driver’s license. If you are unable to work due to a medical condition, bring paperwork to back that up. Also bring an updated CV, certificates of education and proof of professional licenses. 

The unemployment office will interview you in that first meeting and let you know how often and on what days you need to sign in at the office on a regular basis. There are some exceptions where individuals are not required to physically come into the office and there are times when all sign-ins are done virtually, such as during Iron Swords or during Covid.

Length of unemployment benefits

The length of unemployment benefits varies depending on age and number of dependents. For instance, if you are under 25 and have 3 dependents, you will get unemployment for 138 days. If you are over 45 with the same number of dependents, unemployment will be paid to you for 175 days. The length and eligibility for unemployment changes if you submit more than one claim in a two year period, or more than one in a four year period if you are under 40 years old.

Discharged soldiers and those who have completed National Service are eligible for up to 70 days of unemployment. Participants in vocational training are paid during their studies for up to 138 days.

Ending unemployment benefits

Once you have finished collecting for the amount you are eligible for, payments will stop automatically. If you still haven’t found a job, you might be eligible for income support from Bituach Leumi.

If you find a job before the unemployment benefits run out, you must inform Bituach Leumi and your payments will be stopped. In a situation in which you were on unpaid leave from your job, if you went back to work at the same business, your employer is responsible for informing Bituach Leumi that you have returned to your job.

Looking for a new job

Lishkat Taasukah will try to help you find a job, but their efforts are not often successful. We can’t find you a job, but we can give you advice about looking for one. Read these articles for guidance on looking for a job:

Categories
Bringing Your Existing Job to Israel Employment in Israel

Finding Remote Work from Home Jobs in Israel

Are you dreaming of a flexible job that doesn’t require commuting? Do you have a situation which makes it hard to work outside the house? It sounds like you’re a perfect candidate for a remote work from home job!

The good news is that Covid has brought about a permanent change in the workplace, and working from home is more popular than ever before. However, many workplaces have integrated work from home into their existing work policies, offering hybrid jobs where you can work from home once or twice a week, but are expected to come into the office on the other days.

Jobs that are entirely work from home do exist in Israel, especially in industries in which face-to-face interactions are less important and technology can be relied on heavily. Some of the industries in which work from home is more popular include:

  • Online teaching
  • Editing and proofreading
  • Graphic design
  • Digital marketing
  • Data entry
  • Virtual assistant/office manager
  • Grant writing
  • Translation

In addition to looking for jobs in industries which lend themselves to work from home, another way to find a remote job is by applying to work for a small business in any industry. Small businesses often do not have office space and equipment for employees, so they prefer to hire people who will work from their own home office. Working in a small business may also offer other advantages, such as more diverse job responsibilities and the excitement of building something from the ground up.

Now that technology has turned the world into one big global village, your remote work from home job doesn’t have to be for an Israeli company. Many overseas companies want to hire people in Israel, due to the large pool of talent in the country as well as the attractive costs. In many cases, it’s possible to make aliyah and bring your job on aliyah too. You continue working for the same company from your home office in Israel instead of from the office in your previous location. 

If you’re already in Israel, you can look for job listings for remote positions which are posted on social media platforms and online job search sites. For more advice on how to find these types of jobs, see How to Find US Companies Open to Employing Israelis.

If fully remote work and maximum flexibility are crucial to your wellbeing, consider freelancing in your chosen profession. When you freelance, your boss can’t suddenly decide employees must come into the office, you set your own hours and you decide how much work to take on. On the other hand, you have to drum up business and have to manage clients, marketing, admin and finances. 

Remember that a remote work relationship, whether for an Israeli company, an overseas firm or in a freelance capacity, is first and foremost based on trust. Your employer or client needs to trust that you are doing high-quality work in a timely manner, that you are available for calls or meetings and that you have their best interests at heart. Once trust is built, you can maintain a long and fruitful working relationship without ever leaving your house to go to work.

Categories
Employment in Israel

How to Ask for a Raise in Israel

Asking for a raise can be a scary proposition – it means putting yourself out there and possibly facing rejection. Although there are some companies in which raises are given automatically after a certain amount of time, in most cases, you will only get a raise if you ask for it. Israel is a country of negotiations (think Middle Eastern shuk), so it’s important to approach salary discussions with the right strategy.

When to ask for a raise

There are a number of times where it’s expected that an employee will ask for a raise. One of these is during an annual or semi-annual review. If your company holds these at pre-arranged times, this is the perfect opportunity to request a salary hike. It’s also common to ask for a raise after you’ve been at the company for a year. If annual reviews take place before you have been there for 12 months, you might want to wait until the end of your year before bringing up the subject.

If you are going on maternity leave, it’s to your benefit to get a raise a few months beforehand, as your Bituach Leumi payments are based on the last three salaries before you give birth. If there’s an opportune time to ask in the first few months of pregnancy, it’s certainly a good idea.

Another time to ask for a raise is when you’ve gotten another offer but would consider staying at the current company if they matched it. If you have another offer on the table, you are in a strong negotiating position. You might even be able to get a slightly higher salary than the other employer is offering. This is a good tactic if you enjoy working for your current employer and would happily stay at a higher salary.

Sometimes employers offer a new title with greater responsibility but “forget” to offer a salary raise to go with it. If this happens to you, explain to your bosses that you would love to take on the new position on the condition that you are compensated for it. You can also proactively ask for a new title and the salary that goes with it. Companies often prefer to promote from within and this is a good way to advance your career and raise your salary at the same time.

List your responsibilities and accomplishments

You might want a raise because the cost of living has gone up and your bank account is suffering, but this is not what matters to your employer. They need to be convinced that you are a valuable employee and that it’s worth it to them to keep you happy for the long-term. 

Don’t assume that your manager, the CEO or HR know what you have been doing at work. There are often tasks that no one notices precisely because they are getting done. Sometimes teamwork hides the part that you took in a particular project. Someone else may have assigned you to tasks that they don’t even realize you are responsible for. 

Before the meeting, make a clear list of your responsibilities and what you have accomplished for each one and present these to state your case.

Mention the industry standard

Let your employer know that you have done research and understand that your current salary is below the industry standard. Doing this serves as a hint that you are looking elsewhere and that if you are not satisfied with your salary, you won’t necessarily stay in the job. This gives your manager a reason to help you get paid what you deserve.

Don’t mention other employee’s salaries. Employers don’t like to hear that their employees are comparing salaries and using this information to pressure them. If you know what other people at the company are making, that info can help you figure out what to ask for, but keep the fact that you know this to yourself. 

What to ask for

If you’ve been underpaid for a while, you may feel that you deserve a huge salary hike, but on the other hand, you know that the likelihood of receiving it is pretty low. You’re better off asking for 5-8% more than you are currently making, since this is considered reasonable.

Always ask for more than you actually want so they can negotiate you down. Your employer is unlikely to agree to the first raise you propose, so start higher and let them offer you a little less.

What to do if a raise isn’t on the table

If you’ve asked for a raise and been told that it’s just not possible, that doesn’t necessarily mean that you can’t improve your work conditions. Request other perks such as more vacation days, a Keren Hishtalmut, more flexibility or the ability to work remotely. If your bosses value your work and want you to stay but don’t have the budget for a raise, they may be willing to consider other options that will give you an incentive to continue to work for them.

If your raise is denied, you can also consider leaving to a different company. Sometimes the only way to raise your salary is by starting a new job. Your negotiating power is always stronger right before you sign a contract, so use that time to ask for a higher salary than you’re making now. It can be scary to think about looking for a new job when you have one you’re already happy with, but there are jobs out there that have other advantages beyond paying better. They might be closer to home, have a better office culture, provide you with more challenging or interesting work or offer more flexibility. In any case, it doesn’t hurt to look around. You can always decide to stay where you are currently if you don’t find something better.

For more tips on succeeding in your career, download Your Route to Career Success in Israel.

Categories
Aliyah Employment in Israel

Working for a UK Company from Israel

The days when everybody had to be in the office all day every day have thankfully ended. Nowadays, many companies understand that remote work can be productive for the company while being convenient for the worker. Companies have even begun to be more open to having people work for them who live in a different country.

If you’ve made aliyah from the UK or a different English-speaking country, or if you are planning your aliyah right now, working for a UK company from Israel might be the right career choice for you. It allows you to easily work in English, in a work culture you are more familiar with and helps you transition smoothly if you are a new immigrant.

When you work in Israel, you are required to report your salary and pay taxes to the Israeli government. This is true regardless of where the company you work for is situated. You don’t want to pay double taxes, so you need to make sure that the HMRC (the UK’s tax authority) knows that you are no longer a UK-resident. You do this by submitting Form P85 and attaching a Form P45 if you were employed during the current tax year. (More information about tax considerations when making aliyah from the UK can be found on the Nefesh B’Nefesh website.)

Now that you’ve gotten UK taxes out of the way, you have to decide how you will report your income in Israel. This can be accomplished in a number of ways, including becoming an employee of an Israeli Employer of Record service or opening an Israeli business.

Employees of Israeli companies get a payslip each month and all necessary deductions (income tax, Bituach Leumi, pension deposits and health tax) are automatically withheld. Business owners report their income bi-monthly by providing the government with receipts for payments made. Then they pay all taxes and legally required payments directly to the relevant government offices. If their income is above 120,000 NIS (as of 2024), they are also required to collect and pay VAT – although in many cases it will be at 0%. (If they happen to be American citizens, the US government will also require them to pay 15% of their income to Social Security.)

Reasons to choose an EOR

Working through an Employer of Record service provides these advantages:

  • Less paperwork – You let the EOR know how much to bill the UK company for your services each month and they take care of the rest. You don’t need to file reports, report income or make payments yourself.
  • No need to exchange currency – If you’re being paid in pounds but need shekels to live in Israel, an EOR will exchange your salary for you.
  • No accounting costs – Business owners need to hire accountants or tax consultants to assist with filing reports which are often too complex to do on your own, especially if you aren’t a native Hebrew speaker.
  • Get paid the same time each month – The EOR will send an invoice to the company well before the date your salary gets deposited, so you know when to expect your paycheck.
  • More transparency – What you see is what you get. Your pay stub shows exactly how much money is going into your bank account, so you never have to guess how much your take home pay is. This is also useful when dealing with banks and mortgages, since you can easily show what your income is.

Reasons to open a business

You may want to consider opening a business for these reasons:

  • No fees to an EOR – Employer of Record services charge a fee for their services and you will save this amount if you have your own business. It’s important to calculate whether this savings is more or less than your accounting fees.
  • Ability to scale and expand – If you open a business, you can take on additional clients easily and smoothly transition away from your UK job at a later date. Although you can use an EOR for more than one client, this will only work if you are providing services but not if you are selling a product.

Personalized advice

Everybody’s situation is different and there may be tax and financial implications that you haven’t considered, so it is recommended that you get personalized advice that takes into account your career goals, lifestyle and income. 

We offer consultations with unbiased advice on the best way for you to structure your career. Write to info@route38.co.il to book a time to speak.

Categories
Employment in Israel

Professional Courses to Jumpstart Your Career in Israel

Career advancement or a complete career reset are good reasons to take professional courses. Government organizations and educational institutions have figured out that many olim are in the market for courses in English that will jumpstart their career and help them accomplish their professional goals. Course topics are varied and cater to lots of different interests. Here are some of the more popular ones.

Graphic design

The ability to create aesthetically pleasing graphics is useful in many professions, from educator to marketer. Even if you’re not artistically inclined, technology makes graphic design attainable. Canva is a popular online program for creating graphics for all sorts of purposes. It’s not difficult to use but you can learn tips and tricks by taking a course. High-level courses for future graphic designers are also available.

AI

Artificial Intelligence is taking over the world with its abilities to generate texts, images and videos that can be used for presentations, marketing materials, educational content and more. As with any tool, if you know how to use it well the results will be better. A course in AI will teach you to harness the potential of the various popular AI tools and allow you to accomplish work tasks more quickly and effectively.

Programming and cyber

Hi-tech is one of the most lucrative career paths in Israel and many jobs in this field don’t require extensive knowledge of Hebrew. Many olim choose to retrain in this field after they have made aliyah. Courses vary from beginner level to more advanced topics, to prepare you for a career in a hi-tech company in Israel. 

Digital marketing 

The field of digital marketing is popular with olim for good reason. Work can be done exclusively in English and often involves interaction with customers and clients overseas. Additionally, it’s versatile – there are a number of specialties such as SEO (search engine optimization) and PPC (pay per click) for the more technically-minded, and content writing, email marketing and social media management for the wordsmiths. Courses in these topics are useful for marketers as well as for small business owners who market their own products or services.

English teaching

Whether you were a teacher before aliyah or have not taught a day in your life, you can become certified as an English teacher through an Israeli teaching college. If you were a licensed teacher, you can’t simply transfer your teaching license to Israel, since you are required to have an Israeli teaching certificate (Teudat Horaah) and have studied teaching English as a second language. Since there is a large demand for English teachers in the country, there are subsidies available for this training either directly through the colleges or through the Ministry of Aliyah and Integration. More information on training to be an English teacher is available in this handbook from the Ministry of Education.

Technical writing

Technical writing can be a lucrative career if you have a flair for writing. It can be a hard field to break into, but once you get that first job and gain experience, there are more jobs available. Technical writing courses focus on the writing aspect, but you’ll have an advantage if you are proficient in various software packages and have a background in programming. Nefesh B’Nefesh has a list of companies which provide training courses in technical writing.

Listings of professional courses in English in Israel

  • Nefesh B’Nefesh partners with multiple organizations to provide professional courses that are relevant for olim. The course listings change periodically, so it’s worth checking back every once in a while.
  • Mati and the Ministry of Aliyah and Integration offer free or inexpensive courses in topics such as digital marketing for new immigrants (up to 10 years in the country).
  • Compuskills offers courses in graphic design, interior design, copywriting, editing, photography and more.
  • Design-related courses are available through Design Alive.
  • Check out this list of Israeli universities which offer degree programs in English.

Your career isn’t set in stone

In our parents’ generation, it seems like most people picked a profession and stuck with it until retirement, sometimes even working for the same employer for most of their professional careers. But these days, upward and sideways mobility is much more common, whether it’s upskilling in the same field, switching industries or getting a job with a different company to advance in title and salary. Taking professional courses gives you the opportunity to take your career to the next level, whether in the industry you’re already working in or an entirely new one.

Categories
Employment in Israel

How to Find a Part-Time Job in Israel

Full-time work may be standard in many industries in Israel, but that doesn’t mean that everyone with a job is working 100% at their position.

Part-time work might be the best solution for:

  • Students who work and study simultaneously 
  • Parents and people with other family obligations who want a flexible schedule
  • Business owners who want to devote time to their businesses while getting a steady paycheck
  • People with other income sources
  • Those with disabilities which preclude full-time work

Industries that lend themselves to part-time work

While some industries seem to be hiring almost exclusively for full-time, there are industries in which part-time is much more common. If you know that you will want to work part-time for the long-term, it’s worth training in one of these fields.

Some examples of fields in which part-time work can be found:

  • Education
  • Nursing
  • Retail
  • Social work
  • Office management
  • Sales

The industries in which it’s harder to find part-time jobs include:

  • Hi-tech
  • Military 
  • Finance

Keep in mind that in some industries, especially those regulated by the government, full-time hours may be less than the usual 42 hours a week. The pay scale will likely be lower as well, but these jobs can be a good solution for maintaining work-life balance and often come with perks that are also worth money.

How to find part-time job listings

Job boards such as Nefesh B’Nefesh (in English) and JobMaster (in Hebrew) have a special section devoted to part-time job listings. Janglo allows you to filter by part-time work once you have chosen a category. There’s even a Facebook group dedicated specifically to part time jobs in Israel.

Unfortunately, a lot of part-time jobs are only listed among full-time jobs, so you will have to spend some time weeding through job listings to find the ones that are relevant. If searching in Hebrew, look for the words Misra Chelkit. If you’re a student, also look for Misrat Studentim.

Pitfalls of part-time work

When taking a part-time job, it’s important to check that the salary offered is commensurate with the average full-time salary for that same job. If you are working 50%, you obviously don’t want to be receiving a salary for a 30% position. 

A common issue with part-time jobs is that the workload is often greater than the amount of hours you have committed to. This can leave you perpetually stressed and you might find yourself working extra hours for lower pay. This often happens without malice and requires you to set firm boundaries and stick to them. When a new task is assigned, you might have to point out what’s already on your plate and how long that will take. Let the employer choose which tasks can be moved to lower priority and set deadlines that are acceptable to both of you and respect your limited hours.

When you take a part-time job, keep in mind that this type of job will often come with limited opportunities for advancement. You are less likely to be promoted or receive a salary raise if you aren’t working full-time. Of course, that might be all right for you at this current time and you can always switch to a full-time job later on if you want to be promoted.

Creating your own part-time position

If you’re having trouble finding part-time work in your field or want to avoid the pitfalls of this type of position, consider creating your own part-time position by opening a business. When you have your own business, you can choose your hours, decide which clients to work with and name your price. Of course, there is the danger of falling into the trap of working non-stop in your business, but if work-life balance is important to you, it’s possible to structure your business such that you earn enough while enjoying a flexible schedule.

Another option is to apply for jobs that say they are full-time and ask for a reduction in hours. This will not always work and can be time-consuming with little ROI (return on investment), but you only need one employer to agree to the arrangement. It is likely easier to convince an employer to reduce your in-office hours and make up hours in the evening, from home. This is an arrangement many parents use in order to work full-time hours but still be home during the critical hours of dinner and bedtime. 

Is there still a lot you don’t know about the Israeli workforce? Download Your Route to Career Success in Israel for a detailed account of everything you need to know about finding and keeping a job, opening a business and your rights and obligations as a worker.

Categories
Employment in Israel

Are Israeli Workplaces Family-Friendly?

Israeli workplaces are not monolithic, so in a lot of ways this is an unfair question. Some workplaces are extremely family-friendly and many are much less so. This is not a difference between big or small companies or whether the company is a subsidiary of a foreign company or entirely Israeli. It’s really about the management and the policies that are set forth by the top-level managers. The only way to know if a company is family-friendly is to ask questions in the interview, listen to the way the interviewer talks about the work culture and chat with current employees.

However, Israeli society as a whole is pretty family-oriented and that spills into the workplace, especially since there are laws that delineate the rights of employees in various family situations.

Pregnancy

Rights for pregnant women in the workplace actually start even before pregnancy if a woman is undergoing fertility treatments. She is legally able to use sick days and up to 40 hours a year for appointments, and can’t be fired or demoted while undergoing treatment.

Discrimination against pregnant women in the hiring process is illegal, and a pregnant woman cannot be fired unless the company can prove that the firing is not related to her pregnancy (such as company-wide layoffs). A pregnant woman cannot be required to work overtime and can take up to 40 hours off for appointments (if she’s a full-time employee).

For more information on the rights of pregnant women in the workplace, see Benefits for Pregnant Women.

Maternity leave

A woman who has worked for a company for more than a year is entitled to 26 weeks of maternity leave, during which the company must hold her job and can’t fire or demote her. Some of this maternity leave is paid (by Bituach Leumi).  A woman who has worked less than 12 months is eligible for 15 weeks, and some or all of this maternity leave is paid. Maternity leave benefits also apply in the case of adoption or surrogacy. 

Read more about maternity leave and maternity pay.

Vacation days for new fathers

New fathers are legally allowed to take off the day of the birth as well as five calendar days thereafter. The first three days are considered vacation days, while the other two days count as sick days. The day of the bris (if the baby is a boy) is not a legally required vacation day, but employers tend to be understanding of the need for taking this day off.

Paternity leave

A man may split the parenting leave with the mother of his child beginning from six weeks after the birth. He can also take off a week in parallel to her maternity leave, in exchange for one week less of maternity payment.

Parenting hours

A new mother who works full time is eligible for a parenting hour each day, so she works one hour less for the first four months after her return from maternity leave. This legal right applies even if she started work in a new company immediately after returning from maternity leave. This hour can be split between both parents, if the mother agrees to give up some of her hours. 

The parenting hour is usually taken at the beginning or end of the day, but if the employer has no reasonable objection, it can also be taken at a different time of day. It can be used for pumping and the employer must provide a suitable place for a woman to pump if she so chooses. 

Vacation days

Aside from national holidays, all employees have legally mandated vacation days. The minimum number of vacation days for a full-time job is 12, but an employee contract can include a larger number of days. These days must be requested from the employer and it is in their discretion to approve or not approve them. Additionally, the employer is within their rights to declare a vacation day for the entire office and deduct that day from each employee’s annual leave. 

The time to ask for more vacation days is in contract negotiations before accepting a job or at the annual review some companies hold. It may be easier to get an employer to agree to more vacation days as opposed to a salary increase.

Sick days for family members

A full-time employee is legally entitled to 18 days of sick leave and some of these days can be used in order to care for sick family members. The first day is unpaid leave unless the employee’s contract states otherwise. 

Since small children tend to get sick pretty often, parents often split the sick days so that neither employee uses up their sick days too quickly and to stay in the good graces of their employers. If working from home is an option, that can often be a good alternative to taking a sick day for a child.

See Vacation Days and Sick Days in Israel for more details on this topic.

Taking off for family simchas

In most jobs, there is no legal mandate regarding taking vacation days for weddings, bar/bat mitzvahs and other family simchas. However, managers are usually willing to allow these vacation days, even if slightly inconvenient to the business. Since these events are planned far in advance, it’s best to give lots of notice about requesting these days off. 

Shiva leave

Jewish employees who are sitting shiva and have worked at their place of employment for at least three months are entitled to seven paid days off. Non-Jewish employees are entitled to days of mourning for first-degree relatives according to the customs of their religion, up to seven days. (In some industries, the three-month employment condition is not necessary.)

Army ceremonies, school plays and other miscellaneous family events

Israeli society is rife with events that take place during the work day and are important for family members to attend. Vacation for these types of events is at the discretion of the employer. Some employers will be more generous about these days than others, and they may be more likely to grant days or hours off if the event is the type that they themselves would want to attend.

Balancing work and family

A full-time job in Israel is 42 hours a week in most industries. Israelis work hard, but they also prioritize family in a very big way. Balancing work and family is made easier by the family-friendly laws that the government has passed in order to protect employees. Workplaces can choose to stick exactly to the letter of the law or they can implement policies which promote work-family balance, such as additional vacation days and sick days paid from day one. Some companies go beyond contractual obligations and provide family-friendly services, such as summer camps for kids, family fun days, unlimited vacation days and gifts for simchas. 

When choosing a place of employment, if work-life balance is important to you, check out the official company policies and speak to current and past employees to find out what the atmosphere is at the workplace. If you’re a parent, see whether there are lots of other parents at the company or whether you will be the only one. If you can, ask the parents whether they view the company as family-friendly, what they like and what they would change about balancing work and family at this place of employment.

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Aliyah Employment in Israel

Switching Careers after Aliyah

If you’ve asked an immigrant to Israel what they do professionally, you’ve probably had more than one person respond with something like, “Well, in the United States I was a shul rabbi and here I am a salesperson” or “I used to be a lawyer and now I’m a freelance graphic designer.”

Of course, there are many people who have stayed in the same career after making aliyah and some have even stayed in the same job. But there are also plenty of olim who have made career switches either for pragmatic reasons or because they took advantage of the opportunity to change things up while they were busy shaking up the rest of their lives.

Wondering if you should switch careers after aliyah? Here are some reasons to consider it:

  • Your current career doesn’t exist in Israel. If you like your field but your specific niche isn’t relevant in Israel, you can change course slightly, or you can choose to go in a completely new direction.
  • Your career exists but will require extensive retraining or relicensing. Lawyers, doctors, nurses and accountants may be in this position. You will need to consider how complicated the process is and how important it is for you to stay in the same field.
  • Your current career is lucrative in your home country but not in Israel. For instance, medicine is generally better paying in the United States than in Israel.
  • Hebrew is required for your current career and you are far from fluent. If this is the case, consider switching to a job in which English is one of the job requirements, such as international marketing, sales to overseas clients, teaching English or hi-tech. If you love what you are doing but can’t do it for an Israeli employer, see if you can bring your existing job with you on aliyah.
  • Your career is on its way to becoming obsolete. If you’re young and have many more years to work in your profession, it makes sense to work in a field where there is a long-term future. Technology is phasing out certain careers, like secretary, medical diagnostician, content writer, investment manager and construction worker. 
  • You don’t actually like your career. Whether you never liked it or don’t like it anymore, this is a really good reason to switch it up. You’re already making sweeping changes to your lifestyle – what’s one more?
  • You’ve always dreamed of doing something different. Societal pressure, student loans and day school tuition costs may have pointed you in a direction that, while satisfying enough, isn’t what you really dream of doing. Now is your opportunity to see whether that dream can work in Israel, where both salaries and expenses are very different.

How to switch careers

It’s not always easy to break into a new field in which you have no experience, but there are some tips that can help you do this:

  • Take professional courses or learn independently. You will want to show employers in Israel that you have the necessary skills to work in your new field, so learning as much as possible is helpful. A certificate of completion from a well-known institution can go a long way.
  • Emphasize skills above experience in your CV. Since your work experience will not demonstrate why you will excel at the jobs you’re applying for, list your skills and be specific about what you know how to do.
  • Network with people in the new field. Networking is one of the best ways to get hired in Israel and it is especially useful if you don’t have the requisite experience. If someone vouches for you, there’s a greater chance you will be considered for a position.
  • Apply for work in small companies. Smaller companies may be willing to take a chance based on intuition or a personal click, where bigger companies will just throw a CV into the “no” pile without much forethought.
  • Open your own business. Now you don’t have to convince an employer that you are qualified, but you will have to convince clients that you are up to the task. Those first few clients may take a while to get, but once you have some experience under your belt, there will be less need to prove yourself.

Getting the most out of your new career

Whether you’ve opted to become an employee in a new field or have decided to open a business, there’s a lot to learn about how the workplace functions in Israel. You should be knowledgeable about employee rights and obligations, company and business culture, how taxes and pension funds are paid and how to deal with specific situations like holding down two jobs or filing for maternity pay. All this information and more is available in our free ebook, Your Route to Career Success in Israel. Wishing you much success in your career and in your aliyah.

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Employment in Israel

Rights of Miluim Soldiers and their Families in the Workplace

Many Israelis serve in the reserve forces on a regular basis as well as during emergencies. A huge percentage of reservists have served for at least part of Iron Swords, and the IDF is considering lengthening annual reserve duty and extending the maximum age for service.

If you serve in the reserves, it’s important to know your rights and obligations.

Informing your employer about reserve duty

When you receive a draft notice, whether it is a regular call-up or an emergency one (Tzav 8), you are required to let your employer know about it in a timely manner. If you received a notice before you started a new job, you are required to inform the employer within a reasonable amount of time before beginning work.

Salary for miluim service

You are entitled to a salary paid for by Bituach Leumi in exchange for your service in miluim, as follows:

Salary as of 2024Daily salaryMonthly salary
Minimum222.27 NIS6,668 NIS
Maximum1,634.33 NIS49,030 NIS

The salary for an employee is based on the average Bruto (pre-tax) salary for the three months prior to the reserve duty. A business owner’s salary is based on the average revenue for the three months prior to drafting, plus 25%.

Various additional bonuses are given by the army for longer periods of service and these will be taken into account by Bituach Leumi.

Payments for reserve duty in Iron Swords are slightly higher. The minimum (for a soldier who wasn’t working prior to getting called up or was living outside the country at the time) is 310.52 NIS per day or 9,316 NIS per month.

Some soldiers are able to work in between army shifts. If that’s the case for you, you can collect payment both from the army and from your regular job.

If you’re a business owner, you should receive your salary for reserve duty automatically. If the funds were not deposited within three weeks of your release from duty, contact Bituach Leumi. This money is considered part of your annual revenue and income tax, Bituach Leumi and health tax must be paid on it.

Employees are paid after a form is submitted to Bituach Leumi. This form can be submitted by you or by your employer. The employer receives the funds and pays you your salary after withdrawing the usual payments for income tax, Bituach Leumi and health tax.

Additional payments

Your employer is required to continue paying Bituach Leumi, severance and pension during the time you are in reserve duty. Starting in April, Bituach Leumi is reimbursing employers for a portion of this expense.

There are many additional payments which are being awarded to soldiers who served in Iron Swords. If you’re eligible, these payments will be transferred directly to your bank account by Bituach Leumi.

There is additional funding available from Bituach Leumi to those who request it for various other war related expenses such as therapy for family members of soldiers, canceled (non-refundable) vacations, delayed studies, etc.

Protection from firing

Soldiers who serve in miluim for at least two days running (regardless of whether they were called up or volunteered for service) are protected from firing for the 30 days after their service ends. During Iron Swords, this law was expanded to protect soldiers who served for 60 days or more, so they cannot be fired for two months after their return from the army. Even if a soldier was in the process of being fired, this process is stalled by the miluim and the same protection applies.

There are some exceptions to this protection. If a business is closing or laying off workers, if the employee’s position is no longer existent or if there was a major disciplinary issue, the employer can request permission to fire said employee. 

Unused vacation days

If you were unable to use up your vacation days for 2023 because you were in miluim (for at least 5 days), these days are rolled over and can be utilized in the next two years.

Spouse’s vacation days

The spouse of a soldier who served more than 30 days of reserve duty will be eligible for extra vacation days if she has children under 14, a chronic illness and children up to 18, a sick parent or first-degree relative with a disability. 

These days are in addition to the legal or contractual vacation and sick days that the spouse gets from her employer:

  • 31-60 days of miluim – 2 days
  • 61-90 days of miluim – 4 days
  • 91-120 days of miluim – 6 days
  • 121 days or more – 8 days


These days can also be used in hourly increments, if the employer agrees, in order for the spouse to take care of errands and appointments which can’t be done outside of work hours.

In addition, spouses of soldiers serving 5 days in a row or more, who have children under age 13, are able to work one less hour a day starting from the first day of miluim.

Fight for your rights

If your rights were impinged upon, either because of ignorance or unscrupulous behavior on the part of your employer, consult a labor lawyer about what steps to take to correct the situation.

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Employment in Israel

Deterioration of Work Conditions and Your Rights

What happens if you start a job with certain conditions and these are later changed to your detriment? Legally, when there is a deterioration of work conditions (Haraat Tnaim), if you have been working at that place of business for a full year, you are entitled to quit and receive compensation as if you were fired.

The purpose of this law is to prevent companies from “convincing” employees to quit by making it untenable for them to stay. This is a big concern when an employee has been at the job for a long time and the compensation payments are high, but it can happen to any worker.

What’s considered a deterioration of work conditions?

  • Habitually late salary payments
  • No longer paying for vacation, travel expenses, convalescence and overtime 
  • Lowering of salary, either globally or by changing the employee’s hours or shifts
  • Demotion
  • Drastic change of role
  • Humiliating treatment of the employee
  • In some cases, transfer of work location to somewhere farther away

In order to be considered a deterioration of work conditions, you need to show that one of these legal definitions occurred and that they are the reason that you quit. It is up to the Labor Court to determine whether you receive compensation for being fired. 

How to quit due to deterioration of work conditions

  1. Consult with a labor lawyer about whether your situation is considered a legal deterioration of work conditions and, if so, follow his/her advice on next steps.
  2. Give your employer a chance to correct the situation. Send a written letter in which you complain and ask for reinstatement of the previous conditions. You might even get lucky and get what you asked for, especially if your employer is worried about a possible lawsuit. If the situation is in fact resolved, you can’t claim compensation if you quit anyway.
  3. You’ll have a better case if you consult with a labor lawyer before resigning and receive assistance in the wording of a resignation letter which references worsening of work conditions.
  4. You must work out your notice period (see Quitting your job: What are your rights and obligations? for details) unless the situation is unsafe or abusive.
  5. If you do go to court, maximize your chances of winning by doing so with the help of a lawyer.

Staying at a job despite the new conditions

There are circumstances under which, even though you are not happy about the new conditions, you prefer to stay at the job instead of quitting. Examples might be when the company is in trouble and everyone takes a pay cut in order to help it stay afloat or if, for some reason, you aren’t able to switch jobs and you would rather have inferior conditions as opposed to no job at all.

If you were informed about worsening conditions and continued to work at the job for eight months or more, it is considered as if you consented to the new conditions and you won’t be able to sue for compensation afterwards. This is true even if you initially objected to the changes.

Your employer may ask you to sign a document stating that you agree to the worsening conditions. They do this in order to protect themselves from being sued during those eight months when you can still claim that you haven’t agreed. Once you sign the document, you have given up your right to claim that you quit due to deterioration of conditions.

Getting a new job

If the deterioration of work conditions is such that you no longer want to continue working at this job, it’s probably a good time to start looking for a new job.

If the prospect seems scary, read our article on how to get a job in Israel. It’s full of information about updating your CV, where to find job postings and the interview process.

For more information on switching jobs, also see these articles:

Categories
Employment in Israel

Working in Israel without Fluent Hebrew

Moving to Israel is not without challenges, and one of the big ones is the language. If you went to a Jewish day school you might have a passable knowledge of Hebrew, but it’s equally possible that while you can read a Jewish text, you can’t carry on a conversation in Hebrew without getting stuck mid-sentence. If you didn’t learn Hebrew at all as a kid and you’re starting from scratch as an adult, learning the language will be a bigger challenge.

It’s obviously a good idea to learn as much Hebrew as you can before you get here and continue to learn once you arrive. You’ll need Hebrew most places you go. Although many Israelis speak English, it will be hard to deal with bureaucracy, customer service and parent-teacher meetings without any Hebrew. 

Work in English

Work can sometimes be the exception to this rule. Depending on your profession, you may be able to find a job where English is a huge plus and Hebrew is not as important. Examples include teaching English, US accounting for expats, technical writing, computer programming, marketing to international clients and overseas sales. 

Be aware that even at jobs where the work is in English, office communication may be in Hebrew. Emails, WhatsApp messages, meetings and friendly conversation may all be conducted in Hebrew. You can certainly start a job like this without fluent Hebrew, but you will feel more comfortable and succeed better if you work on improving your language skills over time.

How to learn Hebrew

The best way to learn a language is to use it as much as possible. When you really need to get your point across in a professional setting, it is probably a good idea to speak English. But if you speak Hebrew in one-on-one conversations with colleagues, during coffee breaks and outside the office, you will gradually become much more fluent.

Many olim choose to start their lives in Israel with a stint at ulpan. There are both government-run and private ulpan programs, which focus on acquiring language skills which are useful in day-to-day interactions. An ulpan can be time-consuming, so if you don’t need to start working as soon as you arrive, you may want to focus on learning Hebrew first and look for work later. If you can swing working during the day and going to ulpan in the evening, there are some programs with convenient schedules for employed people.

Bring your job with you from abroad


More and more olim are now choosing to come to Israel with a job they brought with them from abroad. This has the obvious advantage of not requiring Hebrew at all, but it’s a double-edged sword; if you don’t need Hebrew for work, it is likely to take you much longer to learn the language and integrate into Israeli society. However, it certainly makes life easier at the beginning and can be a very useful first job in your new home.

For more information on working in Israel, download our free e-book, Your Route to Career Success in Israel.

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Employment in Israel

How to Find US Companies Open to Employing Israelis

Whether you are considering a move to Israel or are already here, you have probably heard that a lot of English-speaking immigrants are working for companies in the United States. Some of the benefits of this arrangement are the ability to work in English, a more familiar workplace environment, the ability to use skills unique to the US market and the possibility of earning a higher salary.

But how do olim find these jobs? Where can you find US companies that are open to employing Israelis?

Outsourcing companies

There are a number of Israeli companies that specialize in outsourcing and hire Israelis to work for their clients in the US. You benefit from the network that the company has already built, which can make finding a job easier. On the other hand, whenever there is a middleman, you need to consider the expense of that intermediary and whether you want to work for an outsourcing company rather than directly with an American company.

Popular outsourcing companies include:

Job sites

Check out job websites and filter for work from home or remote positions. English-speaking Israeli job boards are likely to have more options for remote work with American companies. The advantage of these sites is that companies that are listed on these sites have chosen to appear there since they are specifically looking for Israeli employees.

These are some boards that focus on English-speaking jobs:

Research companies

Make a list of the companies in your industry that you might like to work at. Then do some online research to see who their employees are. Do they have employees who clearly live in Israel? Or perhaps they have a remote work policy and hire employees from different areas of the US or abroad? Even if these companies aren’t specifically looking to hire Israelis, there’s a chance that they would be open to hiring someone living in Israel. Apply through the regular channels and emphasize that you would like to work remotely.

Here are some websites where you can find remote jobs (although you have to check whether specific companies will hire residents of Israel):

Networking


It’s been said before that many jobs in Israel are procured through networking. You can often get a job based on who you know, and that is true for remote jobs for US companies as well. Go to networking events, connect online to people in your industry and tell everyone you know that you’re looking for work in an American company. The more people you know who are working for US companies (whether they live in Israel or the US), the easier it will be to find out about available jobs. 

The next step

Once you find that remote job, the next step is to figure out how you will get paid and how you will report your income to the Israeli government. You can find some general advice on this dilemma in the article: How to Work from Israel for a US-based Company. For individualized guidance, book a consultation with us at info@route38.co.il

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Business in Israel Employment in Israel

Working as an Employee and as a Freelancer at the Same Time

Interested in more than one career path? Want to freelance without giving up the steady paycheck? Building a business slowly and maintaining another job in the meantime? Whatever the reason is, if you are working as an employee and as a freelancer at the same time, it’s important to understand your rights and obligations.

Bituach Leumi and Bituach Briut

Employees get Bituach Leumi (National Insurance) and Bituach Briut (Health Insurance) deducted from their salaries. Freelancers must pay these mandatory payments independently. If you are registered both as a freelancer and an employee, the Israeli government will automatically take into account your income as an employee before charging you as a freelancer. You  need to open a file with Bituch Leumi so that they know to charge you accordingly.

Income tax

Income tax is deducted automatically from your paycheck as an employee but you have to report your income as a freelancer and pay taxes on it independently. In the end of the year report, you report your employee income in addition to your freelance income, as well as expenses that you incurred for the business (but not the other job). So you can claim the internet in your home but not the commute to your job. If you have doubts about what can be claimed and what cannot be claimed, it’s best to consult with an accountant or tax advisor to make sure you are getting it right.

Pension

Anyone who works in Israel must have a pension fund. The company you work for will deposit funds into your pension every month, partially at the expense of the company and partially deducted from your salary. Freelancers are obligated to deposit funds into a pension plan, but if the amount you are required to pay (based on your revenue) is lower or the same as what you are getting from your employer, you will not have to deposit any more.

If you are required to add funds, it is up to you whether you deposit them into the same pension plan your employer uses or whether you maintain two separate plans. 

Keren Hishtalmut

A Keren Hishtalmut is a tax-free investment account which is deducted from your income. It is not offered to all employees, but in some workplaces the employer pays for part of it while the rest is paid for by the employee. Freelancers who want to open a Keren Hishtalmut must pay the entire amount themselves. It is not possible to pay into the same account from two different sources, so you will have to maintain two accounts, one from your employer and one from your freelance business.

You will get tax credits for this investment, but the number of credits you get as a freelancer takes into account the amount deposited by your employer into your other account.

Maternity leave

You are eligible for paid maternity leave if you have worked and paid Bituach Leumi for the necessary amount of time before giving birth. If you are eligible both in your freelance and employed work, maternity payment will be given to you according to your combined income. If you are eligible only in one of the incomes, you will receive payment only based on that income. For your freelance work, the maternity leave payment is estimated according to the advance tax payments you are paying. After filing a tax return it will be recalculated. 

Unemployment

If you are fired from your job as an employee, you may be eligible for unemployment payments. You can continue to work in your freelance business, but the payments you receive will be lowered to account for your freelance revenue. In general, if you lose your freelance income you are not eligible for unemployment, although there are some professions which are an exception to this rule.

Work grant

If your income is very low you might be eligible for a work grant. This grant can be awarded to a freelancer or an employee. If your combined income from your business and job are low enough, you can receive the work grant while maintaining both streams of income.

Want to learn more about working and freelancing in Israel? Download our free e-book, Your Route to Career Success in Israel.

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Employment in Israel

Are EOR services only for US citizens?

Employer of Record services are becoming more and more popular in Israel and for good reason! They have the reputation of being specifically for US citizens who want to avoid being self-employed and therefore required to pay 15% of their income to US Social Security. But this is far from the only purpose they serve, and EORs are definitely not only for US citizens.

Save the hassle and expense of accounting

When you get paid from abroad, you set yourself up legally and report your income to the Israeli government. If you do this by registering as a freelancer, you need to conform to all the rules of freelancing, including invoicing, sending receipts, reporting your income bi-monthly or annually (depending on how much you make), deducting expenses and paying VAT (if you earn more than 120,000 annually). 

If you’re employed by an EOR, the company you work for pays the EOR and the EOR provides you with an Israeli pay stub, with taxes and other payments automatically withheld. You don’t need to hire an accountant or spend hours on pesky office work that takes you away from your actual job.

Save on currency exchange

Getting paid in foreign currency? As a freelancer, you have to maintain a bank account abroad or have foreign currency deposited in your Israeli account. You live in Israel, which means your expenses are all in shekels, so it’s pretty inconvenient and expensive to be constantly converting foreign currency so you can pay your bills. International bank transfers can be expensive on both ends and the company abroad may not like paying extra each month for the privilege of paying you. Some companies will just flat out refuse to pay into a bank account outside of their country.

EORs take the burden off you. They may have bank accounts in other countries or accept the transfers into their Israeli account and take care of converting to shekels without your involvement. You get paid in shekels directly into your Israeli bank account and can pay your bills without any hassle.

Get a stable paycheck

With an EOR, you get paid the same time of the month every month. Taxes and other payments are already withheld and you don’t have to guess what your take home pay actually is. Freelancers are often unable to tell you how much they earn, since so many payments are taken off after they get paid by their clients and these payments aren’t the same every month. So there’s value in seeing it all spelled out clearly on your pay stub and only getting money in the bank which is actually yours to spend.

When you ask the bank for a loan or mortgage, it’s easy to show your income by producing your pay stubs. Banks sometimes look askance at freelance income, considering it less stable than income earned from a job, so having a pay stub can be a big advantage there.

Is an EOR right for you?

It’s hard to know if an EOR is right for you without knowing the specifics of your job, income and finances. We recommend booking a consultation with us to discuss the details of your particular situation. Whether you have already accepted a job, have been working abroad for a while or are considering accepting a new job, we can help you figure out the best way to structure this. At Route 38, we give you the best advice tailored specifically to you, with your best interests front and center. Email us at info@route38.co.il to book your consultation. 

Categories
Employment in Israel

How to Get a Job in Israel with No Network

Ask any Israeli how to get a job in Israel and they will tell you that connections and networking are a big factor. They might tell you a story about how they found out about a job through a friend of a friend, someone they served with in the army then pushed their CV to the top of the pile and when they got to the interview, they played Jewish geography and discovered that the interviewer was best friends with their former neighbor.

But what if you don’t know anyone in your field in Israel? What if you don’t have multiple relatives here and made aliyah after army age? Does this mean that your job prospects are doomed?

Of course not! Although some jobs are found through connections (what we Israelis call “protexia”) it’s also possible to find employment by applying the old fashioned way.

Here’s how to do it.

Create your Israeli CV

The first rule of thumb for an Israeli CV is to keep short and simple. Unless you’re in a specific industry where longer CVs are acceptable, keep yours to one page. Use bullet points and short sentences to describe your experience, starting with the most recent and working backwards. If you previously worked in a different field or in a job that’s not relevant to the one you are applying for, leave it off altogether, since it won’t help make your case.

Include your full name, phone numbers and email address. Some Israelis include their addresses on their CV but that opens up the possibility of potential employers thinking you live too far away or making assumptions about who you are based on where you live. It is not customary to include a picture and is no longer customary to add your marital/family status.

List your skills front and center, as they may not be obvious from your list of previous jobs. Include your education, but unless you are very young, don’t include where you went to high school.

Tailor each CV to the employer you are sending it to, emphasizing the skills and experience they will care about and de-emphasizing or excluding those which are less important. For instance, if you are applying for a teaching position, the fact that you are handy at using Word is not important, but if you are applying to be an office manager you want to include that and leave out your experience as a classroom teacher.

Search for job postings

Once you have a CV that’s market-ready, start looking for potential jobs. Social media is a great source of job postings. There are a number of Facebook and LinkedIn groups that are dedicated specifically to job posts. 

Remember that if you can find jobs on social media, potential employers can find you there too, so ensure that all your profiles are professional looking. If your profile picture shows you drinking beer with your friends, now is the time to change that. Check that your LinkedIn accurately represents your skills and experience, as it effectively serves as a second resume.

There’s no shame in posting on your social media that you are looking for work. You can state that you have just made aliyah or that you are looking for your next challenge. The more people that know you are looking, the more likely that someone (sometimes even the most unexpected someone) will send a relevant job post your way.

Aside from groups that aggregate job posts, there may also be groups for professionals in your field. That’s a great way to find out about available jobs as well as connect with people in your industry.

Job postings can also be found on Israeli job boards. Nefesh B’Nefesh manages a job board specifically geared toward olim, including many positions that don’t require much, or any, Hebrew. You can also search job listings in English on the Janglo website. Search in Hebrew on sites such as Jobnet, Drushim and AllJobs.

Write a cover letter

Never send an email that just includes an attachment! Instead, write a cover letter and send it in your email to the employer or recruiter. Don’t make the cover letter part of the file with your CV, send it directly in the email. A good cover letter is no more than four or five lines and stresses which skills and experience make you perfect for this specific job. 

If you know the name of the person who will be reading this letter, start with Dear [first name] to personalize your message. If you don’t, leave off the salutation. Do not write “Dear Sir/Madam” or “To whom it may concern.”

Consider using an AI tool such as ChatGPT to improve your cover letter. Write a draft and then run it through AI software to make it even better. Don’t forget to check it for mistakes (they do occasionally happen) and tweak it if it comes out a little bit too generic.

Proofread your CV and cover letter

Before sending, proofread, then proofread and proofread again. Even better, ask a few friends to look over your CV and cover letter before you send them. Typos and grammatical mistakes make you look sloppy, and if you are applying for a position in which language is important (like teaching, sales or marketing), mistakes are even more off-putting. Pay attention to the tenses as well. Choose either past or present but don’t zigzag between the two. You don’t want your CV thrown away because it didn’t look professional! 

Follow up

Immediately after applying, send an email or LinkedIn message to the recruiter to check that your CV was received and to reiterate your interest in the position. The first reason to do this is because most companies have bots filtering the CVs before they even reach the recruiter, so it’s possible that your CV was never actually seen by a human being. The second reason is that this will help you stand out. Most people never follow up, so when you reach out to the recruiter you demonstrate your drive and determination.

Job searching is not like dating

You don’t have to see where one job application goes before applying to another. In fact, the more jobs you apply to, the better your chances of getting called for an interview and getting the job. Devote a certain part of each day to reviewing the job listings and applying to whichever jobs seem relevant. 

Sometimes job posts will add requirements that they might be flexible on for the right candidate. They might prefer to hire someone with 3-5 years experience but your skills and two years might just be enough to impress them. They might list proficiencies in certain technologies but be willing to train you in the one you don’t know, if everything else seems right. So be bold and apply even if you don’t meet every single one of the requirements. 

Be aware that the opposite is true as well. If you are overqualified for the job (for example, the ad asks for 2-3 years of experience and you have 10), don’t be surprised if you don’t get a response to your application. That’s because the recruiter wants to hire someone less qualified and pay them a lower salary. He knows that even if you compromise on a lower salary in order to get that first Israeli job, you won’t be satisfied with the compensation for long and won’t stay in the job for the long haul.

Give networking a chance

If you’re seriously looking for a job, there’s no reason to stick to just one method. Cold applications certainly have their place, but it’s also a good idea to start networking. Even if you don’t get your next job through a connection, you never know when that network will come in handy. Connect to people in your field or related fields on social media and at in-person meetups. One-on-one coffees with relevant connections and attendance at general networking events will create that community that will help you further your career. And you might even make some new friends! Check out our article on How to Build a Network in Israel for more information on how to do this well.

Job searching is a little bit like dating

There is one similarity between job searching and dating – you only need one to work out. That right job is out there somewhere. It might take a little while and some effort to find it, but perseverance pays off in the end.

Categories
Aliyah Employment in Israel

Can I Get an Israeli Job before Making Aliyah?

If you’ve started consulting with people about aliyah, you may have noticed this phenomenon. Jews living outside Israel often state unequivocally that it’s irresponsible to make aliyah without having a job, while Israelis tell you that it’s almost impossible to get a job here until you are physically in the country. Who’s right?

The advice you’re getting abroad is based on the fact that it can be hard to manage your finances here, especially since there are a lot of adjustments you need to make. Banking, salaries, expenses – it’s all different here. And in a country where salaries are relatively low but expenses aren’t, it can be a real challenge to successfully navigate your finances here. This will, of course, be exacerbated if you are unemployed for the first few months, or longer, of your aliyah. So yes, it would be great to have a job waiting for you before you get on the plane.

Unfortunately, Israelis very much live by the seat of their pants. This is a country in which stability is a rarity, and we never know what’s coming next. We tend to hire employees who can start as soon as possible (after they work off their notice in their previous place of employment) and we may not trust that someone will actually move here until they have arrived. That makes it harder to get a job before you have made aliyah.

It’s not impossible, though! If you have an expertise that’s rare or you have connections in your field, you may be able to get a job offer before aliyah. It’s not likely to be before you make the commitment to come, so you can’t really make the decision to come only after you have a job. Instead, take the leap of faith, decide to come and start looking for a job close to your aliyah date. 

Start networking and putting feelers out there. Get to know Israelis in your field who reside in Israel or in your country of origin. Let friends and family know that you are making aliyah and what kind of work you are looking for. Beef up your LinkedIn profile and revamp your CV to fit with the Israeli style. Even if these measures don’t get you a job before you get here, they will certainly help once you arrive. 

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Employment in Israel

How to Build a Network in Israel

It is often said that job-hunting in Israel is heavily based on “protexia” (connections) and there is definitely some truth to this. As an oleh, you might think that you are at a disadvantage, not having old school and army friends to rely on for support. And if you’re experienced in your field but have no former colleagues to help you find a job, that can be concerning as well.

But here’s the good news: Networks can be built at any age and at any point in life, and the prevalence of social media in our lives means that connections can be created virtually as well. Connections with people often begin online and become real friendships later on. Israelis are hard-wired to help others, as we have all grown up on values of chesed and kindness, so even a distant connection can be the one who will help you land a job.

You can start building your network even before you start actively looking for a job in Israel. Connect to people in your field and related industries on LinkedIn. Comment on their posts, ask questions and show interest in what they share online. Join industry-related and general job groups on Facebook and LinkedIn. Contribute where you can and connect personally to people in these groups who you would like to know in real life.

Israelis that are currently in the US are a great resource as well. Reach out to founders and ask them to meet for coffee and attend events happening in cities around the US. For instance, Israeli Mapped in NY and Israeli Mapped in Boston list Israeli startups in those cities and hold get-togethers for their members.

Once you are in Israel, it’s a good idea to attend networking events. These take place all over the country and many of them are in English (although you can always go to the Hebrew ones and find people who want to practice their English with you). Get to know people, write down who they are and what they do and ask them how you can be of service to them. When you get home, search for the people you met on social media and connect to them there. Write them a note about how much you enjoyed meeting them and will keep them in mind when you hear of someone needing their services, hiring in their field etc. 

Ask to meet some of them one-on-one for coffee, to continue the conversation you started at the event or to dive deeper into how you can help each other. (Remember, if you issued the invitation, coffee is on you.)

You can also join small networking groups that have regular events and where members try to help each other out as much as possible. There are BNI groups all over Israel and there are a number of English Speaking Networking groups as well. ESN combines professional development with networking support and also hosts occasional large events.

Don’t underestimate the power of “friends of friends.” Ask your friends who they know in your field and request they introduce you, so that you can connect to those people and be mutually helpful to each other. If you’re applying to a company, it pays to ask your friends whether they know someone who works there and can help get your CV seen. If a friend asks them to use their protexia as a favor to them, they might do it even if they don’t know you personally. 

When you’re actively looking for work, let people know what kind of job you seek and ask for leads of places that are hiring. You won’t find every relevant job ad on your own, so it’s great to have people looking out for you and sending you relevant ads that they spot. There are also jobs that aren’t widely advertised or haven’t been publicized yet, which you can find out about from connections. Don’t be afraid to look “desperate” by letting people know you are on the job hunt. It’s just like dating; if you don’t tell people you want to be set up, it won’t happen. Put the word out there that you are looking and you will get help from friends and strangers alike.

Lastly, don’t neglect your network once you have a job. You never know when you will have to rely on it again. And even if you never need it yourself, you will have the privilege of helping others advance their professional careers by utilizing your own protexia, just like a true Israeli.

Categories
Employment in Israel

The Hiring Process in Israel

Finding a job in Israel is often the biggest hurdle in the aliyah process and it’s compounded by the fact that the hiring process can be quite different from what you are used to. We’re here to clear up some of that confusion and provide clarity on what to expect. If you haven’t read our post on how to get a job in Israel, start there and then come back here to read about what happens when you apply for a position.

Step 1: Your CV lands in a pile

When you send your CV to a company, first a robot goes through the CVs to weed out totally irrelevant applications. Then, your CV lands in a pile of resumes from all the appropriate job seekers who have applied for the same position. An HR employee and the hiring manager on the team will skim through all the CVs to see who seems suitable. Notice that we said skim and not read, because they tend to glance at each one and make an almost-instant decision about whether to contact you. Your CV must have all the important information on top, be easy to read and be tailored to the job you are applying for. Make sure your skills and experience are easy to spot and relevant to the position.

Step 2: Phone interview

If your CV stood out, you will get a call or e-mail from an HR representative asking you to interview for the position. Companies will often start with a 15-20 minute phone interview before asking to meet you in person. Sometimes, you will get a call out of the blue and be expected to interview on the spot. If this is inconvenient, let them know very politely that this isn’t a good time to talk and schedule a time where you can be fully present. 

To prepare for this call, research the company online, review the job description and be ready with an answer to the question, “What are your salary expectations?” It’s best to give an honest answer when asked, so that you don’t waste your time or theirs continuing in the process with a company which won’t satisfy your salary needs. 

Because each company has a slightly different hiring process, this is the time to ask what the next steps are so you are prepared for whatever comes next.

Step 3: In-person interview

If the phone call went well, you will likely be invited to an in-person interview. This is the time to showcase what you bring to the table as well as to ask questions about the job expectations and get a feel for whether this job is the right fit for you. You’ll want to understand the hours required, the tasks you will be expected to complete and who you will be working with. For instance, if you’re being hired to interface with people in the US, will you be required to work American hours? This is an especially important question if you are interviewing for a position in sales, customer support, customer success or marketing. 

You also want to pay attention to the general atmosphere of the company to determine whether this is a place where you will feel comfortable and enjoy working.

Olim are often unsure what to wear to an interview in Israel, since the more formal wear they might have worn in their country of origin seems out of place here. The best way to determine what to wear is to look online at the company website and their social media to see how their employees are dressed. You want to dress similarly, but look as if you made a bit of an effort to look put together.

Step 4: Assignment and/or presentation

Companies in Israel sometimes ask you to complete an assignment in a fairly short deadline and/or prepare a presentation for your potential team members. The purpose of this “homework” is to determine whether you have the skills necessary for the job. You can look at this as another way to see if this job is a good fit for you. If you can complete the task with relative ease and enjoy doing it, you’re on the right track. But if it’s totally out of your wheelhouse, boring or frustrating, you may not want this job.

If you are asked to give a presentation, prepare for it so you go in confident and knowledgeable. If the presentation is in English, keep in mind that you may be presenting to people who are not native English speakers. They likely know all the professional terminology in English, but might not know other complex words, so stick to vocabulary they are likely to understand. 

Step 5: Checking your references

If the hiring team is seriously considering you, they will reach out to the references that you have mentioned on your CV. It’s important that you choose references who will say positive things about you, so make sure to list people you had a good relationship with. Ask them beforehand if they are OK with being listed as a reference. If they hem and haw, choose someone else!

If you can, let them know that you are in the advanced stages of a hiring process and they might be contacted in the near future. Tell them what job you are applying for and what skills are crucial for it. This gives them a chance to prepare and raises the likelihood that they will give a good impression of you. 

Step 6: Interview with the CEO

Depending on the size of the company, you may be asked to interview with the CEO of the company. In a small startup this is more common than in a big company, since you are likely to have an ongoing relationship with the CEO if you take the job. Find out what you can about him or her beforehand, ask about the company and show that you are excited about what the company does and how you can be a part of that.

Step 7: Negotiations

If you’ve made it this far, the next step is negotiating the contract. You will be offered a salary as well as other perks, such as number of vacation days and how sick days are paid. You don’t have to accept the first offer; negotiations are acceptable and expected. There are some companies that won’t budge, but there are definitely cases where asking for more – either salary or perks – can be successful. It’s important to negotiate politely and to decide for yourself what the minimum is that you will accept. It’s OK to walk away if their best offer is not acceptable to you. 

Once negotiations are over, you will get a contract to sign. Whether the contract is in English or Hebrew, it’s always a good idea to have a lawyer look over the contract and ensure that you aren’t signing anything you aren’t aware is written there. If you find something objectionable, ask for an explanation and possibly ask for it to be removed. Again, don’t sign just because you got this far. Only sign if you are satisfied with the contract and want the job.

Step 8: Start working

If you are currently employed, you will have to give notice at your previous place of employment and start working only after that. You can ask to start work a bit after that, if you feel that a short vacation will help you transition and start the new job with more energy. Depending on the company’s needs, they may be more or less flexible on start dates. In any case, they generally expect that you will start working pretty soon after the contract is signed.
The first days at a new job are always going to be challenging. Focus on learning the job, interacting with your colleagues and fitting into the company culture. Update your CV with information about your new job and maintain your professional network, since you may need it again sometime down the line. Most importantly, enjoy your new job!

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Employment in Israel

The Termination Process

The process of firing an employee in Israel is set out clearly by the law, and the termination process seeks to protect the rights of the employee. 

An employer can’t fire an employee without a hearing (shimua). The employer will send a notice to the employee inviting him or her to a hearing. This notice must include the reasons that the employee is being fired and be sent with enough advance notice for the employee to prepare for it. The employee can come alone to the meeting or bring a lawyer or other representative. He can refute the claims and make the case for his continued employment. Alternatively, he can waive his right to a hearing, if he so chooses.

If there is a legal reason why the employee can’t be fired, such as pregnancy or pending army service), this is the time to bring that up.

The hearing is not meant to be a formality, and the employer is supposed to seriously consider the employee’s argument before making a final decision. Nonetheless, most people who have attended a termination hearing do end up getting fired.

After the company has decided to go ahead with termination, a written notice will be sent detailing the date on which the employment is terminated. An employee who has worked at the company for at least a year is entitled to a month’s notice.

Within 14 days of termination (or 7 days after the employee requests it), the employer must send a letter of termination which states the start and end dates of employment. 

An employee who has been at this workplace for a year or more is entitled to severance pay upon being fired. Severance is one month’s salary for one year of work, unless the employee’s contract promises more. If the employer fires an employee shortly before the end of the first year of employment, this is likely to be seen by the labor courts as an attempt to avoid paying severance. If this happens, the fired employee should seek legal counsel.

If the employee has unused vacation days, the employer is required to pay a regular day’s salary for each one.

Now is the time for the employee to find out whether he is eligible for unemployment from Bituach Leumi, and if so, to apply for it. He should also tweak his CV and begin the search for new employment. 

Categories
Employment in Israel

Quitting your job: What are your rights and obligations?

If you are not happy with your job or you have found a better one, it may be time to quit your current job and move on. Israel is a small country and almost everyone is connected in some way, so it’s important to leave in a professional way and on the best terms possible. 

Make sure that you give proper notice according to the law. Israeli employment law states that an employee who has received a monthly salary in an organization for up to one year must give notice as follows: one day for each of the first 6 months of employment and two and a half days for each additional month of employment. If you have been working at the same company for over a year, you must give one month’s notice. 

An hourly or daily worker who has worked up to one year must give notice of one day per month of employment. A worker of 1-2 years needs to give notice of 14 days plus one day for each two months of work in the second year, with a cap of 20 days. A worker of 2-3 years gives notice of 21 days plus a day for each two months worked during the third year. After 3 years, the notice period is a month.

If your contract says that you must let your employer know that you are resigning earlier than the legal requirement, you can still give notice according to the law and no legal action can be taken against you. Of course, this might anger your employer, so consider whether you want to do this.

You will work as usual during the notice period and receive your regular salary. You and your employer have the right to agree mutually to shorten the notice period, but it can’t be forced on either of you. If you have vacation days saved up, you can use them during your notice period, unless your employer needs your services and insists that you work. 

You will want to let your senior bosses know in person that you are leaving before you write an official resignation letter. They will almost certainly ask why you are quitting. This is not necessarily the time to tell them every single thing you hate about working at their company. You can give one or two reasons that are true but not accusatory. Or you can simply say that you have found a better opportunity or want to change directions in your career. Mention some of the things you enjoyed or learned at the company to soften the blow and leave a positive impression.

Work out your notice in the best way you can. If the company has already hired a replacement, train the new employee to make the transition as smooth as possible. 

Once you have left, beware your instinct to badmouth your previous employer in public or on social media. Your comments may very well get back to your bosses and leave a bad taste in their mouths. Remember that you may need a recommendation from them someday or that they may be asked about you in the future by potential employers. Israel is, after all, a very small country.

Categories
Employment in Israel

Resources on Employee Rights

Do you know your rights as an employee? We recommend having a general working knowledge of the employment laws in Israel. Employees who are not well-versed in their rights can be taken advantage of, and this can easily happen to olim who don’t ask the right questions (or ask the right people).

Additionally, there can be specific issues that you need in-depth information on, such as the intricacies of termination, maternity pay and pensions. Our goal here is to provide as much helpful information as possible, but if you need greater detail, here’s how to get it.

The Kol Zechut (All Rights) website is partially translated from the Hebrew site and includes many articles on all aspects of legal rights, from health and disability to immigrants and old age. There are numerous articles about employment issues, such as pensions, National Insurance, income tax, labor laws and more.

Kav LaOved is an Israeli nonprofit organization which provides individual help to employees who suspect that their rights have been violated or who want to better understand their circumstances. The organization has office hours and a hotline and can also be contacted via email. The website provides some English language brochures about topics such as work accidents, hourly workers and women’s rights in the workplace.

For more general information, see Nefesh B’Nefesh’s online article on Employee Benefits. This article covers some of the basics of the employee-employer relationship and Israel labor laws.

The Human Resources representative at your company is also a useful resource. In larger companies, there may be an entire HR department, but even in smaller companies, someone is in charge of HR. If you don’t know who that is, ask. The HR representative should be able to explain your pay stub, assist with specific questions and provide you with necessary forms. 

There is strength in community. You can easily get answers to employment questions by posting on olim social media groups, especially those that are dedicated to career discussions. Of course, not all these answers will be accurate, so take them with a grain of salt, but there is often a consensus on legalities and processes which can point you in the right direction. These groups can also provide firsthand experience of other olim, which is often invaluable.

Knowledge is power and this is certainly true in the realm of employee rights. Awareness can help you choose the right job, get what you deserve in your job and leave a job in the right way.

Categories
Employment in Israel

How to Get a Job in Israel

One of the biggest challenges of moving to any new country is finding a job and aliyah to Israel is no exception. It can be daunting to seek employment in a country where the norms are different from your home country, the primary language is Hebrew and everyone else seems to know each other. But have no fear; many olim are gainfully employed in Israel and you can be too.

Resume/CV

Your first step in your job search is to create a resume (or CV as it tends to be called here) that fits Israeli standards. CVs should be one page long and include a list of skills above your experience and education. If you’ve had many jobs, remove the oldest ones and the least relevant to the job you are applying for, so you can keep to the one page format. 

Whether you need a Hebrew CV is dependent on the industry you work in and the type of job you are looking for. Even many Israelis submit English CVs, especially in the hi-tech industry. It’s best to ask around in your industry (you can easily do this on a Facebook or LinkedIn group if you don’t personally know anyone who works in the field) to find out what language your CV should be in.

Until recently, CVs always included personal information like marital status, children and home address, so you might be told to add these to your CV. But most experts in job hunting are now recommending against this, since these personal details can cause prejudice.

When sending a CV to a company, include a cover letter in your email of up to 5 sentences, detailing why you are the right person for this job. Your cover letter should be tailored to the job you are applying for, so send a different one for each application. 

It’s important to have references prepared as companies will often ask for them. If there’s no room on your CV to list them, you can leave them out, but make sure that you have names ready and that you have asked for permission to share their contact information. Be sure to add a line on your CV that says “References available upon request.” If you are asked for references, provide names, phone numbers and email addresses.

Job Postings

One place to search for a job is online. There are a number of Hebrew job posting websites (some may require a paid membership) and the Nefesh B’Nefesh Job Board and Janglo website list jobs that are geared specifically to olim, many not requiring any Hebrew. Jobs are also listed on Facebook and LinkedIn groups, especially those catering to English speakers. Cities with large Anglo populations tend to have local Facebook groups which may have job opportunities and there are also groups devoted to job postings and career advice.

“Protexia”

It’s true that a lot of Israelis find jobs through relatives and old army buddies. You may not have those, but you might have friends who made aliyah before you, acquaintances who are willing to lend a hand and Facebook friends or LinkedIn connections who are happy to support fellow olim. Put yourself out there by calling and posting on social media about the kind of job you are looking for. This is commonly done by Israelis, whether they are looking for their first job or have left their previous job for whatever reason. You may hear about positions that haven’t been advertised yet or get your CV on the top of the pile because of a personal recommendation, so this is well worth doing.

Reaching Out to Companies Directly

If there’s a company you would like to work for, you can reach out directly to their HR department and ask if they are hiring. Even if they aren’t, they will often keep your CV on file and contact you later if an appropriate position becomes available.

Working for a Foreign Company

If you have previously worked in a company with offices around the world, find out if there’s an Israeli office you can apply to work at. You might even be able to transfer your existing position to the Israeli office. It is also possible to work for a company outside of Israel, if they are comfortable with hiring a remote employee. Many olim work from home or in a shared workspace for a company based in their home country. 

This won’t always work, since many local subsidiaries of global companies are not interested in putting an employee of a foreign subsidiary on their books due to factors such as budget, headcount restrictions and payroll imbalance. It never hurts to ask, though!

Headhunters, Career Consultants and HR Companies

Depending on your industry, you may find that a headhunter can help match you with a position that’s right for you. Headhunters specialize in helping companies (usually large ones) find the right employee. They are paid by the firm which is hiring and do not take payment from job seekers.

Career consultants help people navigate the job search. They are paid for their time and expertise, regardless of whether you find a job. According to Marna Becker of MRB Consulting, career consultants can help you by sharing their built-in network, improving your CV, boosting your networking skills and troubleshooting why you’re having trouble finding a job.

Career consultants are especially useful if you are looking for your first job in Israel, don’t have a strong network here and are not familiar with the norms and company culture in the country. They are also helpful if you’re just entering the workforce and need help deciding what profession to pursue based on your skillset, personality traits etc. Additionally, a career consultant can be of great assistance if you’re contemplating a career change and aren’t sure what you want to do or how to transfer your skills to a new field.

There are also human resource companies which specialize in placing employees in positions. Be aware that these companies are sometimes also the employers, and the salary and perks of the job may differ from those offered to the employees of the company proper. 

When to Apply

If you’re making aliyah now, be aware that Israeli companies tend to want their employees to start sooner rather than later, so searching for a job months before moving to Israel is likely to be futile. Use that time to check out the job market in your field and make some connections, and start applying shortly before aliyah or once you are already here.

If you are currently employed in Israel, make sure you know how much notice you need to give your current employer, so you don’t end up in a situation where you can’t take a job you were offered due to an early start time. (The notice period is generally a month if you have worked at a job for at least a year.) If you’re on maternity leave, start looking for work close to when you are willing to start a new job. 

An exception to this rule is if you are in a field where contracts are on a set schedule, like education. Conventional wisdom is to start searching for a position in education around Pesach time, in order to start in September.

The Interview

Job interviews are often less formal and this can take some olim by surprise. Questions might range from the professional to the personal, and don’t be surprised if there’s some Jewish geography mixed in. Candidates are often asked what their salary expectations are. You can sometimes turn the question on them and get them to tell you what they want to pay, but this won’t always work, so be prepared with a range and be open to negotiation. 

Job hunting in Israel may take some time, but the jobs are out there and you can certainly find one. Wishing you a successful and smooth job search!

Categories
Employment in Israel

Vacation Days and Sick Days in Israel

Israeli labor law has determined a minimum number of vacation and sick days, but company policies may differ and you may be entitled to more benefits than legally required. Here we delineate what is legally required.

National Holidays

Employees are entitled to up to 9 paid vacation days for national holidays, assuming these days fall on a weekday. These holidays are religion-dependent. For Jewish workers, the days are:

  1. First day of Rosh Hashanah
  2. Second day of Rosh Hashanah 
  3. Yom Kippur
  4. Sukkot
  5. Simchat Torah
  6. First day of Pesach
  7. Last day of Pesach
  8. Yom Haatzmaut
  9. Shavuot

Employees who usually work on Fridays or Shabbat get paid for these vacation days if they fall on a weekend, but employees who work Monday-Thursday are not paid extra for national holidays that don’t fall on a work day.

Additionally, there are other days which are not national holidays but which any Jewish employee can take as one of their accrued vacation days (up to one day per year). These are called “Yemei Bechira” (chosen days):

  1. Erev Rosh Hashanah
  2. Tzom Gedalya
  3. Erev Yom Kippur
  4. Erev Sukkot
  5. Hoshanah Rabbah
  6. Sigd
  7. Asarah B’Tevet
  8. Taanit Esther
  9. Purim
  10. Shushan Purim
  11. Erev Pesach
  12. Erev Shvii Shel Pesach
  13. Mimuna
  14. Lag B’Omer
  15. Erev Shavuot
  16. Shiva Assar B’Tammuz
  17. Tisha B’Av

Annual Vacation 

An employee’s allowance of vacation days depends on whether the job is full or part time, how long the employee has worked at the company and how many days a week the job requires. The minimum number of annual vacation days for a full time employee is 12. 

It is within the employer’s rights to determine when an employee can take vacation and it is legal for the office to be shut down for a specific time period and all employees required to take their vacation at that time. If the enforced vacation is for 7 days or more, the employee must be informed at least two weeks in advance.

Employees are entitled to take one vacation day a year at any time, without need for the employer’s consent, on the condition that the employee notified the employer thirty days in advance.

Days Off Which Aren’t Vacation Days

Employees who are absent for reserve duty, a worker’s strike (unless they are government employees), maternity leave, mourning/shiva or national elections do not have these days deducted from their annual vacation days.

Sick Days

A salaried employee who works full time at once place of employment is eligible for 18 sick days a year (1.5 per month). Sick days can be used for one’s own sickness or in order to care for a family member who is sick. Legally, the employee isn’t paid for the first sick day. The second and third days are 50% pay and the fourth and on are 100% pay. In order to be eligible for this payment, the employee must provide a sick note from a doctor.

Contract Negotiations

Some companies stipulate in their contracts that the employee is entitled to more sick days, that they pay for the first sick day as well or that they offer more vacation days than stipulated by law. When negotiating a contract (either for a new job or in the case of a promotion) these stipulations can often be negotiated. Sometimes, despite a company standing firm on the salary they are offering, they are flexible on vacation and sick days. It is considered acceptable to bring this up in salary negotiations and may result in an improvement in working conditions.

Categories
Employment in Israel Podcasts

Podcast: Employee Rights: What You Need to Know

Yael Frydman, COO of Route 38, knows almost everything there is to know about employee rights and she shares what you should be aware of. 

Categories
Employment in Israel

Israeli Company Culture (and Your Culture Shock)

If you’re just entering the workforce in Israel, you may find that the company culture here is different from what you are used to in your home country. Not every company in Israel is the same, and there are differences between industries and locations, but a group of working women in Israel who belong to the ImaKadima Facebook group have helped us compile a list of characteristics that you are likely to encounter in the Israeli workplace.

Bear in mind that Jerusalem offices tend to be more toned down than offices in the Tel Aviv area. Jerusalem offices are often more heavily religious and that affects workplace culture as well. Some of the characteristics described below are true across the board, while others are more likely to be experienced in the Merkaz (center of the country).

Formality (or lack thereof)

Israel tends to be less formal in general and this is never more true than in the workforce. It starts with the way people dress and talk and even affects management.

Most companies do not have a dress code and casual dress is the norm. There are very few companies where people wear suits to work and many workplaces where jeans and flip-flops are perfectly acceptable.

Israelis tend to speak at work in the same way they speak to their friends or random strangers on the bus. You might be surprised to hear people speaking loudly, very directly and even sounding like they are having an argument, but none of these things are considered rude in Israel. It’s likely that you will be expected to make your opinions known and not beat around the bush.

There is less deference to hierarchy at Israeli companies. Management tends to be more accessible and more open to socializing with employees. Bosses (or their HR departments) often organize mandatory “fun days,” which can be very informal. Alcohol is often served at company events and people are encouraged to let their hair down a bit.

Vacations and absences

Israeli law requires minimum vacation days, but employers can dictate when those vacation days take place. Some companies have mandatory shutdowns during periods when many employees want to take off or when productivity is low. So you may find that your company is closed on chol hamoed or during the last two weeks of August. In some companies that stay open, there is a much smaller staff since a lot of employees choose to take their vacation days at those times.

A large number of Israelis serve in the military reserves (miluim) until their early forties. So your colleagues might be off of work for an extended period while they are in the IDF.

International travel has become popular in Israel in recent years, and it’s not unheard of for employees to take off for a week or two in order to vacation outside the country.

Blurred Boundaries

If you’re used to very strict boundaries between your personal and professional life, aliyah is a good opportunity to let go of them. Coworkers tend to be open about their personal lives, discussing children, spouses and even politics. Colleagues invite each other to family simchas and give each other gifts for events.

Hot topics like politics or religion are not taboo and heated discussions can happen, with everyone still staying on friendly terms. Coworkers may share their feelings and be more free with hugging and kissing. Sometimes personal discussions veer into gray areas, such as asking a woman about her plans regarding getting pregnant. You don’t have to answer any questions that make you uncomfortable or could lead to discriminiation, but it’s best to avoid them elegantly.

In many workplaces, it is acceptable for family and friends to come by to say hello. Even children are welcome in these offices, as long as they aren’t too disruptive.

Work Hours

The Israeli work week is fairly long. A full time job (without overtime) is 42 hours. Many companies work Sunday to Thursday, which translates into nine-hour days. Some companies (and especially governmental institutions) have shorter hours for working mothers.

If you get a job offer with a global salary, this means that you are expected to work overtime. The exact details must be laid out in your contract and adhere to the laws on compensation for overtime.

Some workplaces have electronic time-clocks, where you clock in when you arrive and clock out when you leave. The time clock protects both you and the employer in case of a dispute about work hours. Mas Hachnasa (Israel Tax Authority) requires that hours worked appear on your monthly pay stub.

Salaries and Benefits

Salaries are paid monthly (by law they must be paid by the 9th of the next month). This might be a culture shock if you are used to getting a paycheck every two weeks. Most employers will take your bank account information and pay you by direct deposit.

It is common for employers to give their staff presents before Rosh Hashanah and Pesach. These might be gift baskets, housewares or a gift certificate. Some companies allow their employees to choose a gift from a list of options. Other employers will not give gifts at all or will give something symbolic, like a bottle of wine. Note that gifts from employers are often taxable.

Breaks

Smoking is ubiquitous in Israel and with it cigarette breaks. Coworkers may use their smoking breaks as a time to socialize or to talk business. Lunchtime is also a social occasion at Israeli workplaces. Colleagues tend to eat together, talking, laughing and getting to know each other. Employees may order in, get takeout from a nearby restaurant or bring their own food. 

Some companies (especially in the hi-tech industry) provide their employees with lunch cards such as 10bis and Cibus, which give them free meals at certain establishments. (The amount on the cards is considered taxable income, since, after all, there is no such thing as a free lunch.) There are also workplaces which provide catered lunches for their staff. Some even stock the fridge with breakfast foods and snacks, so employees never have to leave the building during the workday.

Family First

Israeli employers are generally respectful of family obligations and events, such as bar mitzvahs, britot, weddings and funerals, and will understand when an employee takes off time to attend them. When there is a death in an employee’s family, this will be announced to all the workers and some of them will make the effort to attend the funeral and/or shiva. An employee sitting shiva is legally entitled to all those days off.

Judaism in the Workplace

Depending on the location and the people who work at the company, the environment might be more or less religious. But even the most secular workplaces are likely to hold holiday parties before major Jewish holidays. Most companies will make arrangements for kosher food at parties and other events if they know that this is important to some of their employees. Even if you are the only kosher-eating person in your office, there’s no need to be shy about asking for consideration of kashrut restrictions. Legally, Jewish holidays on which work is prohibited by Jewish law are considered paid vacation days.

Work Methods

Olim are sometimes surprised to find out that the customer isn’t always right in Israel. This is true as a consumer but also as an employee. You may find that your bosses are working under the impression that they know what’s best, even if customer feedback seems to be saying something different.

Organized methods and deadlines are not always a feature of the Israeli workplace. On the other hand, both management and employees tend to be extremely dedicated to getting the job done, even if it requires working crazy hours or pulling people off other projects to complete a goal.

Communication

We already mentioned the lack of formality in speech and this includes using casual army slang and references, swear words and divulging TMI (too much information). Israelis talk fast and interrupt each other and this is not considered rude. They do small talk and Jewish geography, but just as often will cut out the small talk to get to the main point as quickly as possible. Who you know is more important than what you know, so it’s important to establish connections, even if it’s as remote as your niece’s neighbor serving in the army with your colleague’s daughter. And don’t be surprised if your coworker offers to set you up with his best friend’s son.

You may find that your office relies less on email and more on WhatsApp and direct communication. A lot of offices prefer task management apps in order to cut down on email but important information may still be relayed informally. This preference for direct communication leads to meetings which may seem unnecessary to you, but which are considered vital by management. 

Adjusting Your Expectations

It will be much easier to get used to the differences in company culture if you come with an open mind and a readiness to learn. Let go of the ideas you brought from your home country and pay attention to how your colleagues behave. Before long, you will find yourself acting like an Israeli and wondering how you ever did business any other way!

Categories
Employment in Israel

Working Two Jobs in Israel: Everything You Need to Know

One of the things you learn quickly in Israel is flexibility. Plans tend to change at the last minute, rules aren’t necessarily law and the food tastes nothing like it did in your home country. At the beginning of life here, these things can be frustrating, but soon you will start to see the benefits of agility and adjustment. 

One of the ways in which Israelis are flexible is in the definition of their careers. There are many Israelis who have one conventional career and stick to it, of course. But there are also a lot of Israelis who work more than one job in order to make a living. There’s the office worker who teaches exercise classes in the evening, the teacher who tutors on the side and the translator who also runs a marketing business, to name a few.

When you have two (or more) jobs, there are some Israeli laws you need to be aware of.

Coordination of Income Tax

If you are a salaried employee, the Income Tax Authority (Mas Hachnasah) provides guidelines to your employer for how much tax to withhold from your salary. Without instruction from Mas Hachnasa, when your employer becomes aware that you are receiving another salary, they are obligated to withhold the maximum amount of taxes.

In order to prevent most of your income going to taxes, you need to coordinate your income tax in a process called Teum Mas. You can apply for a Teum Mas online by providing information about your income sources, although it may be worth your while to stop by your local Mas Hachnasa office and walk it through with an agent. This may take more time, but oftentimes saves headache down the road due to misunderstandings or typos. You will need certain details from your employers, such as their Mispar Tik Nikuim (payroll tax number) and your expected annual income. Register at the Income Tax Authority in order to access the form for Teum Mas. The Teum Mas will arrive within a week or two of applying and you should then send this report to your payroll or HR department so they know the proper amount of taxes to be withheld.

In some cases, you may also need to communicate your dual income to Bituach Leumi. If you didn’t do so and you overpaid, you can request a return.

Unemployment Benefits

Working a second job doesn’t disqualify you from unemployment benefits. If you worked for two employers and one of them laid you off, you can continue to work at the second job and collect unemployment from the first one if you qualify. Your benefits will, of course, be lower than if you were laid off from your only job and were no longer working at all. You’ll need to submit pay stubs from your employer each month.

Entrepreneur with Multiple Clients

If you have multiple clients and don’t receive a salary, you must open a business with independent contractor files at the VAT office, Income Tax Authority and Bituach Leumi. You report your income and pay income tax, Bituach Leumi and VAT (if relevant) according to your total income from all your clients. This involves paperwork and it is recommended that you hire a tax consultant (Yoetz Mas) or accountant to help you with this. 

It is also possible to receive a salary from an Employer of Record such as Route 38. In that case, the clients pay the EOR and you receive a salary based on revenue collected. Payments and taxes are automatically withheld, just like they are for every other salaried employee.

Employee and Entrepreneur

If you’re supplementing a salaried job with a side business, you need to open files with the VAT office, the Income Tax Authority and Bituach Leumi. Your payments to Bituach Leumi will be deducted automatically from your salary and additional payments will be owed from your freelance income, taking into account what you have already paid as a salaried employee. 

As a freelancer, you are required to report your income to the Income Tax Authority. There is no need for a Teum Mas, unless you have more than one salaried position in addition to your freelance earnings. When filing your end of the year report, include your income as a salaried employee so your income tax is calculated correctly. This report should also include funds deducted from both the job and the business for pension or Keren Hishtalmut (education savings fund), as they will reduce your taxable income.

Categories
Employment in Israel

Benefits for Pregnant Women

Israeli employment law protects pregnant women in several ways. In fact, there are some benefits that start even before pregnancy if a woman is undergoing fertility treatments. Full days off for fertility treatment are treated as sick days and individual hours can also be deducted (up to 40 hours a year for a full time employee). A woman cannot be fired or have her salary changed during an absence due to fertility treatments.

A woman is obligated to inform her employer of her pregnancy during her fifth month. Likewise, a woman who is hired at a new job while pregnant doesn’t have to disclose her pregnancy prior to accepting the job, unless she has reached month 5. Some women choose to let their employer know earlier, either because they are feeling sick and may not be performing at optimal level or in order to give their bosses more time to find a maternity leave replacement. The law allowing women to wait till five months protects them against discrimination, so each employee should consider carefully when the best time to disclose a pregnancy is.

Discrimination against pregnant women, in the hiring process or in the workplace, is illegal. A woman who was discriminated against can sue her employer in the labor court. This includes a prohibition of firing a pregnant woman because she is pregnant. If a company wants to fire a pregnant woman for a different reason, and that woman has worked at the company for more than 6 months, the employer must obtain special permission to fire her. A common case would be a company that is laying off many workers due to budget cuts and wants to include a pregnant woman in the general layoff. If a pregnant woman was fired without special permission, it is considered as if she was never fired.

Employers are also prohibited from lowering the salary or work scope of a pregnant woman, regardless of how long she has worked at the company. 

It is prohibited to require a pregnant woman to work overtime or night shifts. However, she can work overtime if she has consented in writing and provided a letter from her OB/GYN that there is no need to refrain from overtime. A woman can be asked to work at night (at least two hours between 10 PM and 6 AM) but she is within her rights to refuse in writing. 

If a woman has a documented high-risk pregnancy and is absent from work for 30 days or more, she is entitled to a Bed Rest Benefit from Bituach Leumi.

A pregnant woman can be absent from work for routine pregnancy tests for up to 40 hours (for a full time employee). These hours are paid for by the employer as if she worked.  A part time employee is entitled to this benefit as well, relative to the number of hours she works on a regular basis.

The spouse of a pregnant woman is entitled to use 7 days of their sick days due to her pregnancy or childbirth. This includes accompanying her to appointments and being present for childbirth. He can also utilize 3 vacation days after the birth of the child. If he wishes to take 4 or 5 days, those extra two days can be considered sick days. These days are not considered maternity leave and don’t negate the spouse’s right to split maternity leave with his wife.

For more information on the rights of pregnant women in the workplace, see the Kol Zchut website.

Categories
Business in Israel Employment in Israel

Should I freelance, open a business or work as an employee?

One of the great things about living in Israel is that there are endless ways of making a living. Olim are often surprised to discover that their new neighbors are working in many different types of jobs and that they are not necessarily working full-time jobs at established companies. They may be freelancers, small business owners or founders of start-ups. The Israeli economy and social structure promote creativity, flexibility and out-of-the-box thinking about careers.

You don’t always have a choice on how to structure your career path, but there are some circumstances in which you will have to choose whether to be an employee, a freelancer or a business owner:

  • The Israeli company you work for wants to hire you as a freelancer
  • You work for a foreign company with no Israeli office
  • You work for multiple clients in Israel or abroad
  • You are starting your own company

Here are the some of the differences between employees, freelancers and business owners:

EmployeeFreelancer (atzma’i – osek patur or osek murshe)Business owner (b’am)
Taxes and social benefit obligations are deducted automaticallyTaxes and social benefit obligations are paid independentlyTaxes and social benefit obligation payments are set up as automatic deductions by the company accountant 
Minimum sick days and vacation days provided by lawNo sick days or vacation daysYou are your own boss. You make the rules.
Keren hishtalmut savings plan may be includedKeren hishtalmut savings plan can be set up independently Keren hishtalmut savings plan can be set up via the business
US citizens will not owe a 15% Social Security (FICA) tax for filing as an independent contractorUS citizens will be taxed 15% of their income to Social SecurityUS citizens will not owe Social Security
No accountant needed to file an annual return, assuming no other reportable incomeAccountant strongly recommended for the end of the year report. Osek murshe has additional, periodic reporting requirements over the course of the year (best done with an accountant).High accounting fees. Monthly, bi-monthly and annual reporting requirements
No additional administrative or accounting responsibilitiesMinimum level of administrative responsibilities in addition to tax reporting responsibilities indicated aboveSignificant additional administrative responsibilities and required understanding of Israeli corporate income tax requirements in addition to tax reporting responsibilities indicated above
Receives maternity leave and maternity payment (after accrual of minimum required months on payroll)Receives maternity leave and maternity payment (after accrual of minimum required months reported)Receives maternity leave and maternity payment (after accrual of minimum required months on payroll)
Work schedule determined by employerSelf-determined work scheduleSelf-determined work schedule
Payment generally deposited directly into employee’s bank accountPayment collected directly from client(s)Payment collected directly from client(s)

One of the reasons that we founded Route 38 was because being an employee in Israel is legally and financially simpler than being a freelancer or opening up a company. We are the employer of record for people who work for foreign companies or provide services to clients and are not employed by another Israeli company. Our solution allows people to focus on their work without spending time and resources on collection of funds, paperwork and government reporting. In many cases, the employees retain control over their schedule and choose which projects they want to work on, while enjoying the benefits of an Israeli pay stub.

There are career paths which don’t lend themselves to the Route 38 employer of record service. In fact, every case is different, and professional advice is highly recommended before making a choice that has long-term effects. We provide objective and professional advice to help you make the choice that’s best for you. Email us at info@route38.co.il with information about your situation and we will get back to you as soon as possible.

Categories
Employment in Israel

How Do I File for Maternity Leave in Israel?

Mazel tov on your new baby! In between changing diapers and feeding this adorable munchkin, you may be worried about how you receive your maternity leave benefits. The good news is that you probably don’t have to do anything to make that happen, but of course, there are some exceptions.

Eligibility for Maternity Leave

Maternity leave refers to the amount of time your employer is obligated to hold your job for you. If you have worked for a year for the same company, you are entitled to a maternity leave of 26 weeks, only some of which is paid. If you have worked for your current company for less than 12 months, you are entitled to 15 weeks of maternity leave, all or some of which is paid. Your employer cannot prevent you from taking maternity leave or begin the termination process for a period of 60 days after your return. 

If you were employed by the same employer for a year before becoming pregnant, you will have pensions contributed on your behalf for the first 5 weeks of maternity leave. You must also deposit 6% during this time (usually laid out by the employer and deducted from your pay upon your return to work).

If you’re self-employed, you don’t need anyone to hold your job, so this is not relevant to you, but you do receive maternity pay from Bituach Leumi.

Maternity Pay

A woman who worked 10 out of 14 months or 15 out of 22 months prior to her birth is eligible for 15 weeks paid maternity leave from Bituach Leumi. A woman who worked 6 out of 14 months prior to her birth is eligible for 8 weeks paid leave.

According to the Kol Zchut website, “The maternity allowance is computed per day according to the gross salary of the employee in the three months preceding the first of the month in which the leave began, divided by 90, or according to the total income in the six months which preceded that day, divided by 180 (whichever is higher, up to the maximum established amount).”

If you’re self-employed, payment is based on the three months preceding your maternity leave or the same three months in the previous year, whichever is higher. If you’re both a salaried worker and self-employed, maternity pay will be based on both incomes.

How to File for Maternity Pay

If you’re a salaried worker and your employer has an arrangement with Bituach Leumi, you will automatically receive your maternity pay in a one time payment during your maternity leave. If you are self-employed, you will get a payment based on your advance payments to Bituach Leumi and adjustments will be made later if necessary. If you were receiving bed rest benefits or unemployment, you will also receive your maternity pay automatically.

If you don’t fall into any of these categories or you gave birth at home and not in the hospital, you will need to file a claim with Bituach Leumi. This can be done up to 9 weeks before the due date by mail, fax or at a local branch, or after birth online. These are some of the documents you may need:

  • Confirmation of birth from the hospital (if you gave birth abroad)
  • Newborn registration at Ministry of Interior (if baby was not born in a hospital)
  • Permit from the Ministry of Health or Ministry of Economy (if you received vocational training from the government)
  • Reserves book and certificate of discharge (if you are a newly released soldier)
  • Proof of National Service (if you have just completed it)
  • Bank account information (if you are a foreign worker or foreign passport holder)
  • A completed Form 355 from Bituach Leumi. Sections 8, 9 and 10 of this form must be completed and signed by your employer.

In most cases, maternity pay arrives automatically in a new mother’s bank account. If you fall into one of the categories that require filing, the process is fairly transparent and shouldn’t be too difficult. You’ll have plenty of time to focus on yourself and your new baby.

Categories
Employment in Israel

How Do Pensions in Israel Work?

Financial advisors will tell you that pensions are just as important as salaries, and for good reason. Although it seems counter-intuitive, retirement expenses are just as high if not higher than what you are spending now. This is because of new expenses such as medicine and medical treatments and increased spending on things like transportation and food. Taxis often replace driving, busing or walking and the ability to get to discount stores may be curtailed. Some retirees are still marrying off children or helping out their young adult kids. And basics like phones, electricity and home maintenance don’t change.

That’s why smart financial planning includes planning for retirement and luckily, the Israeli government has regulated this so that every citizen has some form of pension.

Bituach Leumi

All citizens who have contributed to Bituach Leumi for 12 years are eligible for a state pension. Israeli residents start paying into Bituach Leumi at the age of 18 (unless they are in the army or National Service). If you are working, this payment is deducted automatically from your paycheck. If you are a business owner, the government collects this payment from you directly. The basic pension starts at 1,558 NIS a month per person and 2,430 NIS for a couple, so while this is a nice amount to have, it’s not going to go very far in covering your living expenses. Furthermore, the amounts paid out by Bituach Leumi might be reduced due to actuarial issues.

Private Pensions

Your employer is obligated to set aside at least 6.5% of your salary or the average wage in the economy (whichever is lower) every month for pension insurance. You also pay into the insurance, at the rate of 6% of your salary. 

Your employer is also obligated to set aside severance pay to the amount of 6%, or 8.33% if you have signed a Chapter 14 clause. A Chapter 14 clause states that the employee is entitled to receive exactly what is in the fund (no more and no less) at the time of termination, regardless of whether the parting of ways was initiated by the employee or the employer. If you don’t use your severance pay, it becomes part of the pension paid out to you in retirement.

Just like Bituach Leumi, employees have their pension deducted automatically from their paychecks, while business owners have to set this up on their own.

Multiple Pensions

Many companies choose a pension provider for their employees and this may result in one person having several pension plans. In recent years, the government has mandated that an employee can choose which plan he wants to contribute to, regardless of the company’s official provider. So if you get a new job but already have an existing plan, you can continue to contribute to it and don’t have to open a new one.

If you do have multiple pensions, check whether you are paying fees on each one. If that’s the case, you may be better off consolidating them into one, although there are cases where it makes sense to keep them separate. If you merge the plans, make sure that your pension is now being paid into the consolidated plan.

Catching Mistakes

It’s important to check that your pension is actually being deducted, because if a mistake is made you may find yourself suddenly losing most of your salary to a retroactive pension payment. 

In general, we recommend looking at your payment stub (tlush maskoret) carefully each month, to check that everything is in order. Payroll mistakes can happen and if you’re only looking at the final number at the bottom, you may miss them.

How to Choose a Pension Plan

There are many pension providers and it can be extremely confusing to understand the differences between them. Revenues, management fees,  level of investment aggression, annuity vs. lump sum payments, various insurances connected with the policies and more differences need to be taken into account when choosing a plan. To complicate matters further, insurance agents are often representatives of one specific company, so they aren’t giving you objective advice. 

If you’re starting fresh or want to switch pension companies, it is advisable to consult with an independent insurance agent who can explain what your options are and recommend a plan that meets your needs.

Thank you to Motty Handler, registered insurance agent, hmotty@gmail.com, for his help in writing this article.

Categories
Employment in Israel

Understanding Israeli Salaries

Whether you have lived in Israel for a number of years, are considering aliyah or are packing up to make the big move, one of your biggest concerns is surely how to make a good living in Israel. Stanley Fisher, former President of the Bank of Israel, famously remarked that he couldn’t understand his own salary slips. Salaries in Israel are made up of a number of components and understanding them is key to analyzing your financial situation. 

Let’s clarify some of the basic terms that are used to describe the required and optional tax and social benefit obligations in Israel. 

Ø  Bruto – Gross salary. Generally the base salary that is offered to you in a contract.

Ø  Neto – The amount of money actually deposited in your bank account on a monthly basis, after deductions of income tax and other required payments are removed. Note that the Israeli standard is to be paid monthly, not bi-weekly or bi-monthly.

Ø  Mas Hachnasa – Income tax. Incurred at a graduated rate. Income tax is removed automatically from your salary, and in most cases, there is no need to file taxes at the end of the year. Income taxes are calculated on an annual basis, yet paid out on a monthly scale. We will dissect this area in a later post.

Ø  Bituach Leumi – National Insurance coverage. Often compared to US Social Security benefits, but they are actually very different. (I’ll compare these two institutions in a future article.)

Ø  Keren Pentzia – Pension fund deposit. This is a mandatory benefit requiring the employer to pay a minimum of 6.5% of the monthly bruto total and the employee to deposit a minimum of 6% of bruto. Each employee has the ability to choose the investment option they prefer. This will also be the subject of a later post.

Ø  Kupat Gemel – Mutual fund investment. Similar to a pension fund in structure and purpose, but not mandatory.

Ø  Bituach Menahalim – Pension for managerial positions and above. 

Ø  Keren Hishtalmut – Translated as a “Study Fund.” The initial purpose was for an employee to accumulate a base in order to apply for continuing education. In reality, it now acts as an additional, optional short term tax free savings vehicle. Some employers offer this as an added benefit, but it is not available across the board.

Ø  Ovdan kosher avodah – Additional, optional long term disability insurance. This perk is generally only offered in the hi-tech sphere.

When you are offered a job in Israel, you will be told what the bruto salary is and what additional benefits (if any) are provided. An employer will not be able to tell you what your neto take home pay will be, since this is based on many factors outside his control. You can get an idea of what your neto salary will be by using this calculator.

Got any more questions about how your neto salary is determined? Comment below and I will respond.