IMPACT – MEDIUM

What is the change? Israel has increased its minimum prevailing wage requirement for foreign experts from 19,086 shekels to 19,604 shekels (about US$5,735) gross per month for 2018.

What does the change mean? The increase affects B-1 foreign experts, but does not affect foreign workers on short-term authorization permits or STEP visas.

  • Implementation time frame: Immediate.
  • Visas/permits affected: B-1 work visas.
  • Who is affected: Companies employing foreign employees on B-1 visas.
  • Business impact: Companies should budget for the wage increase.

Background: Israeli officials recently announced the new prevailing wage for foreign experts. Employers may include the following when calculating employee wages: gross salary, unconditional per diem payments, unconditional monthly relocation compensation, unconditional monthly international travel allowances, unconditional monthly bonuses and other unconditional monthly payments. Bonuses or other payments that are conditional on job performance or other factors cannot be included. Foreign nationals working in Israel under short-term authorization permits or STEP visas are covered under the minimum salary levels announced earlier in January.

BAL Analysis: Companies are required to meet the new 2018 prevailing wages for B-1 foreign experts immediately and should identify affected employees and adjust salaries accordingly.