7 New Tax Laws for the New Year

Working in Israel? There will be 7 laws going into effect on January 1st 2017, you should get to know.

1. The national minimum wage will increase to 5,000 NIS monthly and will reach 5,300 NIS by the end of the year.

2. Plastic bags will now cost 10 agorot a piece. For now, this only applies only to large grocery chains, and not to convenience stores, market stalls, or drug stores.

3. Bituach Leumi has a compulsory savings plan for children. 50 NIS of a child’s monthly allowance will be places in a bank account until the child reaches 18. The amount may be increased but not decreased.

4. Salaried workers are to receive additional vacation days. Workers employed up to four years  and work five days weekly earn 12 days of vacation annually instead of 10. Workers employed six days a week will be entitled to 14 vacation days a year instead of 12.

5. There is a tax rate change. If you earn up to 20,000 NIS monthly will pay less tax and those earning 60,000 NIS monthly will pay more tax.

6. Those that are self-employed will have to set aside a pension plan.

7. Rating systems for internal tenders in civil service will be eliminated. Instead, the process will be extended to use inter-office tenders and possibly public tenders.