Exemption of regular declaration for the employer of a foreign worker with respect to long-term care


Exemption from regular declaration for the employer of a foreign worker who is recipient of a benefit from the National Insurance Institute (NII)

Recipients of long-term care benefits, attendance allowance and disabled child allowance, who employ a foreign worker for long-term care purposes - are exempted from regular declaration about the employment of the foreign worker, according to the established rules.

  • For information about the exemption for long-term care benefit recipients - click here.
  • For information about exemption for recipients of attendance and disabled child allowances - click here.

Exemption from regular declaration for the employer of a foreign worker who does not receive any benefit from the NII

As of 1.1.2020, the employer of a foreign worker (caregiver), who holds a permit to hire a foreign worker for purposes of long-term care issued by the Population and Immigration Authority - will be exempt from regular declaration about the employment of the foreign worker, if the wage privately paid to the foreign worker amount to up to NIS 5,500 per month.

Remark: the exemption of payment of insurance contributions applies neither to corporations nor to other entities who employ foreign workers. The exemption is not granted but to a long-term care employer who is a private individual.

How to receive the exemption?

  • If the wage you are paying privately to the foreign worker amounts to up to NIS 5,500 per month - you will be exempted from regular declaration on the employment.
  • If the wage you are paying privately to the foreign worker is above NIS 5,500 per month - you have to report and pay contributions only on the wage balance above NIS 5,500 per month.

For instance: If you privately pay to the foreign worker a wage totaling 6,500 NIS, you must report and pay insurance contributions on 1,000 NIS alone.

Method of declaration and payment:

Insurance contributions rate - 2% of the wage.

The declaration and payment can be made by means of the internet site or a payments booklet. We send payments booklet automatically to the employer of a foreign worker who is not a recipient of long-term care benefit. The booklet is sent to him by post up to the month of March 2020.

Conditions of entitlement to the exemption

To obtain the regular declaration exemption, you must meet the two conditions below:

  1. If you haven't open a file as employer of a domestic worker at the National Insurance Institute for the foreign worker, you have to open one (even if you don't actually have to pay insurance contributions), and communicate relevant details notably about the foreign worker and the wage.
  2. Pay the wage by bank transfer into the bank account of the foreign worker or by cheque made out to the foreign worker and cashed on his bank account.

 

Important: if the foreign worker submits a claim for a benefit from the National Insurance Institute (such as work injury benefit, maternity allowance and the likes), we will ask you and him to provide us with supporting documents regarding wage payment, such as printouts of the bank account into which wage deposits were made by cheque or bank transfer, in order to calculate to benefit rate du to him.

For any inquiries, you can call the telephone call center at *6050 or the information and support center for the elderly and their families at *9696.