Deductions from salary Your employer may deduct the following sums from your salary: Income tax is deducted from your salary by the employer and transferred to the tax authorities. The employer should not deduct from your salary any fees imposed on him for your employment. National Insurance (In Hebrew: Bituach Leumi) fees are deducted from your salary and cover the following: Work-related injuries Sick pay and maternity allowance Unpaid wages or severance pay in case your employer goes bankrupt (see below) The rate of national insurance deduction is 0.04% for the first NIS 4,430 of your salary, and 0.87% of every shekel above NIS 4,430. You may find detailed information on National Insurance benefits and deductions on the National Insurance Institute website. Housing and Health Insurance: additional deductions include housing expenses and health insurance costs. Your employer may also deduct from your salary sums that you owe them (such as loans and recruitment fees), but only if you agree to it in writing. Note: your employer is required to pay the authorities various fees for the right to employ migrant workers. The employer should not deduct any such fees from your salary. The overall deduction cannot exceed 25% of your salary. Your employer is legally (Hebrew) obliged to arrange accommodation for you. The law (Hebrew) further details the required standards and costs of employees’ residence.
Posted on: Tue, 04 Mar 2014 09:57:42 +0000