Key Points
- Effective April 1, 2025, Israel’s prevailing wage for foreign employees will increase to NIS 6,248 monthly gross.
- This represents a 6% increase in the minimum salary for eligible foreign workers.
- The increase applies to foreign nationals holding SEA, STEP, and B-1 visas and 2(a)(5) asylum and protection status.
- Employers must ensure compliance with the updated wage requirements to avoid penalties.
Overview
On April 1, 2025, Israel will implement a 6% increase in the prevailing wage requirements for foreign nationals employed under specific work visa categories. The new minimum monthly gross salary will be New Israel Shekel (NIS) 6,248, marking a vital adjustment designed to reflect economic changes and protect the financial rights of foreign workers.
The updated wage requirements apply to individuals holding Short Employment Authorization (SEA) permits, Short-Term Employment Authorization Program (STEP) permits, general B-1 work visas, and 2(a)(5) asylum and protection seeker permits. Employers hiring under these visa categories must ensure their foreign employees receive at least the revised salary level to comply with labor regulations.
The prevailing wage increase aligns with Israel’s broader labor market policies and ensures that foreign national employees earn salaries that meet evolving cost-of-living standards. This adjustment is also part of the government’s commitment to maintaining fair and competitive compensation standards for foreign experts contributing to Israel’s economy.
Employers must review and, if necessary, adjust their payroll processes before April 1, 2025, to ensure compliance with the updated wage thresholds. The new salary standard applies to newly issued work permits and existing ones active as of the effective date.
Looking Ahead
Employers should evaluate their workforce budgets to accommodate the new prevailing wage and ensure that all relevant employment contracts reflect the updated salary requirements. Non-compliance with the revised wage standard could result in penalties, fines, or potential restrictions on future work visa approvals.
Confirming that foreign national employees’ employment contracts align with the new wage threshold is essential to avoid potential discrepancies that could affect their work authorization status.
Global mobility and HR teams should remain vigilant for additional updates from Israeli labor authorities regarding wage adjustments or further regulatory changes in 2025. Employers may also benefit from consulting with legal professionals to ensure their foreign workforce remains compliant as these changes occur.
This prevailing wage adjustment reinforces Israel’s commitment to fair labor practices and aims to maintain a sustainable labor market that supports foreign experts and local industries.
