Recently, we received many inquiries from working Asylum Seekers that a big sum of money was deducted from their salary for tax purpose. We are asking you to help us spread the relevant information:
The income tax in Israel is progressive. This means, for example, that an employee that earns up to 5,280 NIS will pay 10%. For any amount higher than 5,270 NIS and up to 9,000 NIS they will pay 14% and so on. Until January 2015, migrant workers and other groups with working visas, were entitled to credit points, a kind of discount in the tax payments. Many employers chose to also give this discount to asylum seekers with a conditional release visa. In January 2015, the Ministry of Finance canceled the credit points to all non-Israeli workers, even those who have a work permit. This means that you now pay tax on any amount you earn, see the table below:
Monthly Income Tax Rate Monthly Tax
Up to 5,270 NIS – 10.00% 527
Up to 9,000 NIS – 14.00% 1,049
Up to 13,990 NIS – 21.00% 2,097
Up to 19,980 NIS – 31.00% 3,954
Up to 41,790 NIS – 34.00% 11,369
Over 67,560 NIS – 48.00% 23,739
What can be done?
The employer must pay this tax, that is what the law requires. Although we are objecting this policy and are trying to fight it, there is no choice but to pay the money to the tax authorities. If you have a question regarding this issue, please don’t leave your work in anger and resign, come to us for consultation.