Immigration Law Update – Israel, August 21, 2023

Coming Soon: Updated Industry Procedure for Israeli Companies 
The Israeli government has recently announced an expansion of the quotas for foreign workers, including a provision for 3,000 foreign workers in the industrial sector. Furthermore, the government is actively working to enlarge the list of countries from which foreign workers can be hired.
Regarding wage considerations, the government has stated that soon, the wages for foreign workers will be aligned with the average wages of their Israeli counterparts engaged in the same job category. This is in contrast to the current procedure that mandates foreign workers’ wages to be at least 130% of the average wages in the market.

These decisions have been made in response to a continuing and significant shortage of skilled human resources in the Israeli industrial sector. The current procedure for foreign workers has not achieved its intended objectives. As reported by the Ministry of Economy, since the inception of the procedure, only 300 foreign workers have entered Israel out of a quota of 1,500 foreign workers. This can be attributed to difficulties in adhering to the wage requirements and the limited list of countries eligible for foreign worker recruitment.

As you may recall, the procedure for Israeli companies obtaining Work Permit for skilled foreign workers for the Israeli industry was introduced in 2021. It enables the employment of skilled foreign workers within the Israeli industry, with a wage requirement set at a minimum of 130% of the average market wage for the specific job category. The total quota of 1,500 is divided into four professional groups: industrial and manufacturing engineers, mechanical engineers, as well as similar job categories; engineers, mechanics, and comparably skilled workers; operators and machine operators, including welders, locksmiths, and carpenters; and workers in exceptional professions. This procedure is limited to specific countries, including but not limited to the United States, most European Union member states, UAE, Canada, Taiwan, Singapore, and other selected countries.

In the coming weeks, the Population and Immigration Authority, in collaboration with the Ministry of Economy, is expected to release an updated industrial procedure in accordance with the government’s decision. The aim is to ease the burden on employers in the industrial sector and address the acute shortage of human resources.

We will keep you informed as soon as the updated procedure is published. Should you have any questions or require assistance, please don’t hesitate to contact us.