Law for the Increase of the Rate of Participation in the Labour Force and the Reduction of Social Gaps (Work Grant), 5768-2007
חוק להגדלת שיעור ההשתתפות בכוח העבודה ולצמצום פערים חברתיים (מענק עבודה), תשס"ח-2007
Published: 2007-12-27Consolidated Hebrew text as of 2026-01-01 · Last amended 2024-03-20✓ Amendment status checked against the Knesset legislation record on 2026-09-29
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Chapter I: Definitions and Interpretation
Definitions and Interpretation§
1.
(a)In this Law, except in Chapter III-B –
"controlling shareholder" and "relative" – (Repealed);
"spouse" – (Expired);
"average monthly income" – the total employment income of an employee in the tax year, divided by the number of actual months of work, and if the employee had income from a business or profession in the tax year – the total employment income plus the total income from a business or profession in that tax year, the resulting sum divided by the number of actual income months; for this purpose, "actual income months" – 12 months, and in respect of a person who opened a business or who began to engage in a profession during a tax year, or who ceased to engage in his business or profession during a tax year, in respect of that tax year – the actual months of work, together with the number of months during which the business was active and which do not overlap with the actual months of work;
"income from a business or profession" – income under section 2(1) or (8) of the Ordinance after the deductions permitted from it under any law and before the set-offs and exemptions permitted from it under any law, including maternity benefits paid under Section C of Chapter III of the National Insurance Law and a pregnancy-preservation allowance paid under Section E of Chapter III of that Law, and including remuneration for days of reserve service paid under Chapter XII of the National Insurance Law, provided that where the amount of income as aforesaid is less than zero, the amount of income shall be deemed to be zero; for this purpose, "deductions" – except for deductions as set out below:
(1)a deduction under sections 17(5a), 20a(a)(1)(b), 47 and 47a of the Ordinance;
(2)a deduction permitted under section 32(14)(b) of the Ordinance;
(3)a deduction permitted under the Income Tax Regulations (Deductions from Income of Investors in a Film in Israel), 5750-1990;
(4)a deduction permitted under the Income Tax Regulations (Rules for the Calculation of Tax in respect of Holding and Sale of Participation Units in an Oil Exploration Partnership), 5749-1988;
"additional income" – income that is one of the following:
(1)a pension that is income under section 2(5) of the Ordinance, except for a pension paid to an employee on account of his disability, on account of his loss of work capacity or on account of the death of his spouse;
(2)an allowance paid by the National Insurance Institute under Section D of Chapter V and under Chapter VI of the National Insurance Law;
(3)another payment or income prescribed by the Minister of Finance, with the consent of the Minister of Welfare and Social Services and the Minister of Justice and with the approval of the Finance Committee of the Knesset;
"average additional income" – the total additional income in a tax year divided by 12;
"employment income" – as defined in the Ordinance, except for employment income that can also be regarded as additional income or as income as set out below:
(1)a pension that is income under section 2(5) of the Ordinance, paid to an employee on account of his disability or on account of his loss of work capacity;
(2)a loss of work capacity pension; for this purpose, "loss of work capacity" – as defined in paragraph (3a) of the definition of "income from personal exertion" in section 1 of the Ordinance;
(3)an allowance paid by the National Insurance Institute under the National Insurance Law that is not listed in paragraph (2) of the definition of "additional income", except for maternity benefits paid under Section C of Chapter III of the National Insurance Law and a pregnancy-preservation allowance paid under Section E of Chapter III of that Law, and except for remuneration for days of reserve service paid under Chapter XII of the National Insurance Law;
"actual month of work" – including a period of annual leave, a period of illness, a period of sabbatical, a period of maternity and parenthood leave for which maternity benefits are paid under Section C of Chapter III of the National Insurance Law, a period of pregnancy preservation for which a pregnancy-preservation allowance is paid under Section E of Chapter III of the National Insurance Law, and a period of reserve service, but excluding a month in respect of which unemployment benefits were paid under Chapter VII of the National Insurance Law;
"National Insurance Law" – the National Insurance Law [Consolidated Version], 5755-1995;
"Penal Law" – the Penal Law, 5737-1977;
"bank account" – including a clearing account within the meaning of section 88a(a) of the Postal Law, 5746-1986, maintained in the subsidiary as defined in section 88k of that Law;
"child" – a person who has not yet reached the age of 19 during the tax year in respect of which a grant under this Law is claimed;
"Director" – as defined in section 1 of the Ordinance, including a Deputy Director appointed by the Minister of Finance for the purposes of this Law, in whole or in part;
"employee" – an individual who is a resident of Israel, who has reached the age of 21 and who had employment income in the tax year;
"the Ordinance" – the Income Tax Ordinance [New Version];
"relative" – a relative as referred to in paragraphs (1), (3) and (4) of the definition of "relative" in section 88 of the Ordinance;
"the following tax year" – the tax year following the tax year in respect of which a grant under this Chapter is claimed;
"resident of Israel" – as defined in the Ordinance, including an Israeli citizen as defined in section 3a of the Ordinance who is a resident of the Area as defined in that section.
(b)Any other term in this Law shall have the meaning assigned to it in the Ordinance, unless expressly stated otherwise.
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Contact Us →Chapter II: Grant for an Employed Employee
Entitlement to a Grant for an Employee§
2.
An employee who has children in the tax year, or an employee without children who has reached the age of 55 in the tax year, whose average monthly income in that tax year is as set out in the paragraphs below, as the case may be, shall be entitled, subject to the provisions of sections 3 to 7, to a grant for each actual month of work in the tax year in which he did not receive employment income from a relative, in the amounts set out in those paragraphs:
(1)for an employee with one or two children or for an employee without children who has reached the age of 55 –
(a)if his average monthly income exceeds NIS 2,450 and is less than NIS 4,260 – an amount of NIS 100 plus 16.1% of the portion of his average monthly income exceeding NIS 2,450;
(b)if his average monthly income is between NIS 4,260 and NIS 5,680 – an amount of NIS 390;
(c)if his average monthly income exceeds NIS 5,680 and does not exceed NIS 7,390 – an amount of NIS 390, less 23% of the portion of his average monthly income exceeding NIS 5,680;
(2)for an employee with at least three children –
(a)if his average monthly income exceeds NIS 2,450 and is less than NIS 4,260 – an amount of NIS 140 plus 23.5% of the portion of his average monthly income exceeding NIS 2,450;
(b)if his average monthly income is between NIS 4,260 and NIS 5,680 – an amount of NIS 570;
(c)if his average monthly income exceeds NIS 5,680 and does not exceed NIS 8,100 – an amount of NIS 570, less 23.5% of the portion of his average monthly income exceeding NIS 5,680.
Restrictions on Entitlement§
3.
(a)Entitlement to a grant under this Chapter shall not apply to an employee in respect of whom, at any time during the tax year, one of the following applied:
(1)he, his spouse or his child who is a dependent of his household holds a right in real property, whether in Israel or outside Israel, that is not a sole residential apartment and is not a residential apartment to which the provisions of section 9(g1g)(2)(b) of the Real Property Taxation Law apply, provided that their combined share in such right exceeds 50%; for this purpose –
"residential apartment" – as defined in section 9(g) of the Real Property Taxation Law;
"right in real property" – as defined in the Real Property Taxation Law;
(2)an asset of a type prescribed by the Minister of Finance with the approval of the Finance Committee of the Knesset is in his ownership, possession or principal use;
(3)(Repealed).
(b)Notwithstanding the provisions of this Chapter, if the total grant amount calculated in accordance with the provisions of this Chapter is less than NIS 20, the employee shall not be entitled to a grant.
Reduction of the Grant on Account of Additional Income§
4.
In respect of an employee as referred to in section 2 who had additional income in the tax year, the following provisions shall apply:
(1)if his average additional income was less than NIS 1,420 – the provisions of that section shall be read in relation to him as if, wherever it appears, instead of "NIS 5,680" there were written "NIS 5,680 less his average additional income";
(2)if his average additional income was NIS 1,420 or more – the provisions of that section shall be read in relation to him as if, wherever it appears, instead of "NIS 4,260" or "NIS 5,680" there were written "NIS 5,680 less his average additional income", instead of "NIS 390" there were written "NIS 100 plus 16.1% of the determining amount" and instead of "NIS 570" there were written "NIS 140 plus 23.5% of the determining amount", provided that if the determining amount is zero or less than zero, the grant amount in respect of him shall be zero; for this purpose, "the determining amount" – the positive difference between the amount obtained by subtracting NIS 2,450 from NIS 5,680 and his average additional income.
Reduction of the Grant on Account of Spouse's Income§
5.
(a)In respect of an employee as referred to in section 2 whose spouse had, in the tax year, employment income, income from a business or profession or additional income, the amounts set out below shall be deducted from the grant fixed for him under section 2 or 4, as the case may be:
(1)in respect of an employee with one or two children and in respect of an employee without children who has reached the age of 55 – 23% of the excess income;
(2)in respect of an employee with three or more children – 23.5% of the excess income.
(b)In this section, "excess income" – the positive difference between the following two:
(1)the amount obtained by adding the average monthly income and the average additional income of the employee to the said incomes of his spouse;
(2)NIS 14,210 plus the following two:
(a)the positive difference between the average monthly income and the average additional income of the employee and NIS 5,680, but not more than NIS 1,710;
(b)the positive difference between the average monthly income and the average additional income of the employee's spouse and NIS 5,680, but not more than NIS 1,710.
(c)(Repealed).
Employee for whom an Adjusted Minimum Wage has been Fixed (Amendment No. 8) 5776-2016 (Amendment No. 11 Temporary Provision) 5778-2018 Notice 5786-2026§
6.
(a)Where an adjusted minimum wage has been fixed for an employee as referred to in section 2, the provisions of that section and the provisions of sections 4 and 5 shall be read in relation to him, with respect to the period for which such wage was fixed, as if, wherever it appears, the words "who has reached the age of 55" were deleted, instead of "NIS 2,450" and "NIS 4,260" there were written "the said amount multiplied by the coefficient", and instead of "NIS 1,430" there were written "NIS 5,680 less the product of NIS 4,260 multiplied by the coefficient".
(b)In this section –
"Minimum Wage Law" – the Minimum Wage Law, 5747-1987;
"coefficient" – the ratio between the adjusted minimum wage and the average minimum wage;
"adjusted minimum wage" – the total minimum wage fixed for an employee under section 17(b) of the Minimum Wage Law, for each of the months of the tax year in respect of which such minimum wage was fixed for him, divided by the number of such months;
"average minimum wage" – the total monthly minimum wage, as defined in the Minimum Wage Law, for each of the months of the tax year, divided by 12.
Increased Grant for a Working Parent§
6a.
(a)Notwithstanding the provisions of sections 2, 4, 5 and 6, an employee who is a parent of one or more children in the tax year and who is entitled to a grant under those sections shall be entitled to a grant at the rate of 150% of the grant calculated under those sections.
(a1)(Expired).
(b)Notwithstanding the provisions of subsection (a), in respect of an employee who is a single parent within the meaning of section 6b, the provisions of that section shall apply.
Special Provisions Regarding an Employee who is a Single Parent (Amendment No. 8) 5776-2016 (Amendment No. 11 Temporary Provision) 5778-2018 Notice 5786-2026§
6b.
(a)Notwithstanding the provisions of section 2, an employee who is a parent of one or more children who are in his or her care and whose maintenance is his or her responsibility, who lives separately from the other parent and has no spouse, including another person publicly known as his or her spouse (in this section – a single parent), and whose average monthly income in that tax year is as set out in the paragraphs below, as the case may be, shall be entitled, subject to the provisions of sections 3 and 7, to a grant for each actual month of work in the tax year in which he or she did not receive employment income from a relative, in the amounts set out in those paragraphs:
(1)for an employee with one or two children –
(a)if his or her average monthly income exceeds NIS 1,510 and is less than NIS 4,260 – an amount equal to NIS 100 plus 10.8% of the portion of his or her average monthly income exceeding NIS 1,510, with the resulting figure multiplied by 150%;
(b)if his or her average monthly income is between NIS 4,260 and NIS 8,000 – 150% of an amount of NIS 390;
(c)if his or her average monthly income exceeds NIS 8,000 and does not exceed NIS 11,190 – an amount of NIS 390, less 11.6% of the portion of his or her average monthly income exceeding NIS 8,000, with the resulting figure multiplied by 150%;
(2)for an employee with at least three children –
(a)if his or her average monthly income exceeds NIS 1,510 and is less than NIS 4,260 – an amount equal to NIS 140 plus 15.5% of the portion of his or her average monthly income exceeding NIS 1,510, with the resulting figure multiplied by 150%;
(b)if his or her average monthly income is between NIS 4,260 and NIS 8,940 – 150% of an amount of NIS 570;
(c)if his or her average monthly income exceeds NIS 8,940 and does not exceed NIS 13,660 – an amount of NIS 570, less 11.6% of the portion of his or her average monthly income exceeding NIS 8,940, with the resulting figure multiplied by 150%.
(b)Notwithstanding the provisions of subsection (a) and section 4, in respect of an employee who is a single parent as referred to in subsection (a) and who had additional income in the tax year, the following provisions shall apply, as the case may be:
(1)in respect of an employee with one or two children –
(a)if his or her average additional income was less than NIS 3,740 – the provisions of subsection (a)(1) shall be read in relation to him or her as if, wherever it appears, instead of "NIS 8,000" there were written "NIS 8,000 less his or her average additional income";
(b)if his or her average additional income was NIS 3,740 or more – the provisions of subsection (a)(1) shall be read in relation to him or her as if, wherever it appears, instead of "NIS 4,260" or "NIS 8,000" there were written "NIS 8,000 less his or her average additional income" and instead of "NIS 390" there were written "NIS 100 plus 10.8% of the determining amount", provided that if the determining amount is zero or less than zero, the grant amount in respect of him or her shall be zero; for this purpose, "the determining amount" – the positive difference between the amount obtained by subtracting NIS 1,510 from NIS 8,000 and his or her average additional income;
(2)in respect of an employee with at least three children –
(a)if his or her average additional income was less than NIS 4,680 – the provisions of subsection (a)(2) shall be read in relation to him or her as if, wherever it appears, instead of "NIS 8,940" there were written "NIS 8,940 less his or her average additional income";
(b)if his or her average additional income was NIS 4,680 or more – the provisions of subsection (a)(2) shall be read in relation to him or her as if, wherever it appears, instead of "NIS 4,260" or "NIS 8,940" there were written "NIS 8,940 less his or her average additional income" and instead of "NIS 570" there were written "NIS 140 plus 15.5% of the determining amount", provided that if the determining amount is zero or less than zero, the grant amount in respect of him or her shall be zero; for this purpose, "the determining amount" – the positive difference between the amount obtained by subtracting NIS 1,510 from NIS 8,940 and his or her average additional income.
(c)Notwithstanding the provisions of subsections (a) and (b) and section 6, where an adjusted minimum wage has been fixed for an employee who is a single parent as referred to in subsection (a), the provisions of subsections (a) and (b) shall be read in relation to him or her, with respect to the period for which such wage was fixed, as if, wherever it appears, instead of "NIS 1,510" and "NIS 4,260" there were written the said amount multiplied by the coefficient, instead of "NIS 3,740" there were written "NIS 8,000 less the product of NIS 4,260 multiplied by the coefficient" and instead of "NIS 4,680" there were written "NIS 8,940 less the product of NIS 4,260 multiplied by the coefficient"; in this subsection, "adjusted minimum wage" and "coefficient" – as defined in section 6(b).
Grant for an Employee who is a Parent of a Toddler (Amendment No. 21) 5784-2024 Notice 5786-2026§
6b1.
(a)In addition to the provisions of sections 2, 4 and 6a, an employee who is a parent of one or more children who have not yet reached the age of three during the tax year in respect of which a grant under this Law is claimed (in this section – a toddler), and whose average monthly income in that tax year is as set out in the following paragraphs, as the case may be, shall be entitled, subject to the provisions of sections 3 and 7, to a grant for each actual month of work in the tax year in which he did not receive employment income from a relative, in respect of each of his children who is a toddler, in the amounts set out in those paragraphs (in this section – a grant for a parent of a toddler):
(1)for an employee who has one or two children –
(a)if his average monthly income exceeds NIS 2,460 and is less than NIS 4,270 – an amount equal to 28.3% of the part of his average monthly income that exceeds NIS 2,460, but not more than NIS 500;
(b)if his average monthly income is between NIS 4,270 and NIS 7,390 – an amount of NIS 500;
(c)if his average monthly income exceeds NIS 7,390 – an amount of NIS 500 less the result obtained by multiplying the deduction percentage by the part of his average monthly income that exceeds NIS 7,390; for this purpose, "deduction percentage" – 34.5% divided by the number of his children who are toddlers;
(2)for an employee who has at least three children –
(a)if his average monthly income exceeds NIS 2,460 and is less than NIS 4,270 – an amount equal to 28.3% of the part of his average monthly income that exceeds NIS 2,460, but not more than NIS 500;
(b)if his average monthly income is between NIS 4,270 and NIS 8,100 – an amount of NIS 500;
(c)if his average monthly income exceeds NIS 8,100 – an amount of NIS 500 less the result obtained by multiplying the deduction percentage by the part of his average monthly income that exceeds NIS 8,100; for this purpose, "deduction percentage" – 35.25% divided by the number of his children who are toddlers.
(b)Notwithstanding the provisions of subsection (a) and section 5, in respect of an employee as referred to in subsection (a) whose spouse had employment income, income from a business or profession or additional income in the tax year, the provisions of section 5 shall be read in relation to him as follows:
(1)in subsection (a), in the preamble, instead of "as referred to in section 2" there shall come "as referred to in section 6b1(a), who is entitled to a grant under that section, or an employee as aforesaid who is entitled to a grant under that section and under sections 2 or 4" and instead of "fixed in respect of him in section 2 or 4, as the case may be" there shall come "the total to which he is entitled under this Chapter";
(2)in subsection (b), instead of paragraph (2) there shall come:
"(2) NIS 16,180 plus the following two:
(a)the positive difference between the average monthly income and the average additional income of the employee and NIS 5,690, but not more than NIS 3,100;
(b)the positive difference between the average monthly income and the average additional income of the employee's spouse and NIS 5,690, but not more than NIS 3,100.".
(c)Notwithstanding the provisions of subsection (a), if an adapted minimum wage has been determined for an employee as referred to in that subsection, the provisions of that subsection shall be read in relation to him, with respect to the period for which such wage has been determined, such that in every place, instead of "NIS 2,460" and "NIS 4,270" there shall come "such amount multiplied by the coefficient"; in this subsection, "adapted minimum wage" and "coefficient" – as defined in section 6(b).
Grant for an Employee who is a Sole Parent of a Toddler (Amendment No. 21) 5784-2024 Notice 5786-2026§
6b2.
(a)In addition to the provisions of section 6b, an employee who is a sole parent as referred to in that section, who is a parent of a toddler as defined in section 6b1(a) during the tax year in respect of which a grant under this Law is claimed, and whose average monthly income in that tax year is as set out in the following paragraphs, as the case may be, shall be entitled, subject to the provisions of sections 3 and 7, to a grant for each actual month of work in the tax year in which he did not receive employment income from a relative, in respect of each of his children who is a toddler, in the amounts set out in those paragraphs, and the provisions of section 6b1 shall not apply to him:
(1)for an employee who has one or two children –
(a)if his average monthly income exceeds NIS 1,500 and is less than NIS 4,270 – an amount equal to 18.7% of the part of his average monthly income that exceeds NIS 1,500, but not more than NIS 500;
(b)if his average monthly income is between NIS 4,270 and NIS 8,000 – an amount of NIS 500;
(c)if his average monthly income exceeds NIS 8,000 – an amount of NIS 500, less the result obtained by multiplying the deduction percentage by the part of his average monthly income that exceeds NIS 8,000; for this purpose, "deduction percentage" – 500 divided by the result obtained by subtracting 8,000 from 11,190;
(2)for an employee who has at least three children –
(a)if his average monthly income exceeds NIS 1,500 and is less than NIS 4,270 – an amount equal to 18.7% of the part of his average monthly income that exceeds NIS 1,500, but not more than NIS 500;
(b)if his average monthly income is between NIS 4,270 and NIS 8,950 – an amount of NIS 500;
(c)if his average monthly income exceeds NIS 8,950 – an amount of NIS 500, less the result obtained by multiplying the deduction percentage by the part of his average monthly income that exceeds NIS 8,950; for this purpose, "deduction percentage" – 500 divided by the result obtained by subtracting 8,950 from 13,660.
(b)Notwithstanding the provisions of subsection (a), if an adapted minimum wage has been determined for an employee as referred to in that subsection, the provisions of that subsection shall be read in relation to him, with respect to the period for which such minimum wage has been determined, such that in every place, instead of "NIS 1,500" and "NIS 4,270" there shall come "such amount multiplied by the coefficient"; in this subsection, "adapted minimum wage" and "coefficient" – as defined in section 6(b).
Employee who Received an Allowance or Payment for a Self-Employed Parent§
6c.
(a)An employee who received an allowance or payment for a self-employed parent in respect of a particular month in tax years 2017 to 2022 shall have deducted from the amount of the grant to which he is entitled in accordance with the provisions of this Law in respect of that month an amount equal to the difference between the allowance or payment paid to him in respect of that month under the provisions of the Income Assurance Law (Temporary Provision and Legislative Amendments), 5776-2016, or under the provisions of sections 12(a)(2), 12a(a)(2) and 12b(a)(2) of the Income Assurance Law as worded in the Economic Efficiency Law (Legislative Amendments for the Achievement of Budget Targets for the 2021 and 2022 Budget Years), 5782-2021, as the case may be, and the allowance or payment that would have been paid to him but for that Law, and not more than the amount of the grant to which he is entitled in respect of that month.
(b)In this section –
"allowance or payment for a self-employed parent" – an allowance or payment for a self-employed parent under the Income Assurance Law or under the Maintenance Law, in the calculation of which the self-employed parent deduction was deducted as referred to in sections 21(a)(2), 12a(a)(2) or 12b(a)(2) of the Income Assurance Law;
"Income Assurance Law" – the Income Assurance Law, 5741-1980;
"Maintenance Law" – the Maintenance (Assurance of Payment) Law, 5732-1972.
6d.§
(Repealed — תיקון מס' 15 – הוראת שעה, 2020)
6d1.§
(Repealed — תיקון מס' 18 – הוראת שעה, 2022)
Grant for a Female Employee who has Reached the Age of 60 (Amendment No. 17) 5782-2021 (Amendment No. 21) 5784-2024 Notice 5786-2026§
6e.
(a)Notwithstanding the provisions of sections 2, 6a and 6b to 6b2, a female employee who was born on 1 Tevet 5720 (1 January 1960) or thereafter, and who has reached the age of 60 but has not yet reached the age of 67 in the tax year, whose average monthly income in that tax year is as set out in the following paragraphs, as the case may be, shall be entitled, subject to the provisions of sections 3 to 7, to a grant for each actual month of work in the tax year in which she did not receive employment income from a relative, in the amounts set out in those paragraphs, provided that the grant to which she is entitled under this section is greater than the amount of the grant to which she would have been entitled in accordance with the provisions of sections 2, 6a, 6b, 6b1 or 6b2, as the case may be:
(1)if her average monthly income exceeds NIS 920 and is less than NIS 4,150 – an amount of NIS 140 plus 33.21% of the part of her average monthly income that exceeds NIS 920;
(2)if her average monthly income is between NIS 4,150 and NIS 6,100 – an amount of NIS 1,210;
(3)if her average monthly income exceeds NIS 6,100 and does not exceed NIS 8,930 – an amount of NIS 1,210, less 42% of the part of her average monthly income that exceeds NIS 6,100.
(b)Notwithstanding the provisions of subsection (a) and section 4, in respect of a female employee as referred to in subsection (a) who had additional income in the tax year, the following provisions shall apply:
(1)if her average additional income was less than NIS 1,950 – the provisions of subsection (a) shall be read in relation to her such that in every place, instead of "NIS 6,100" there shall come "NIS 6,100 less her average additional income";
(2)if her average additional income was NIS 1,950 or more – the provisions of subsection (a) shall be read in relation to her such that in every place, instead of "NIS 4,150" and instead of "NIS 6,100" there shall come "NIS 6,100 less her average additional income", and instead of "NIS 1,210" there shall come "NIS 140 plus 33.21% of the determining amount", provided that if the determining amount is zero or less than zero – the grant amount in relation to her shall be zero; for this purpose, "the determining amount" – the positive difference between the amount obtained by subtracting NIS 920 from NIS 6,100 and her average additional income.
(c)Notwithstanding the provisions of subsection (a) and section 5, in respect of a female employee as referred to in subsection (a) whose spouse had employment income, income from a business or profession or additional income in the tax year, 42% of the excess income shall be deducted from the grant fixed in respect of her in this section; for the purposes of this subsection, "excess income" – the positive difference between the following two:
(1)the amount obtained by adding the average monthly income and the average additional income of the female employee to such incomes of her spouse;
(2)NIS 15,210 plus the following two:
(a)the positive difference between the average monthly income and the average additional income of the female employee and NIS 6,100, but not more than NIS 2,820;
(b)the positive difference between the average monthly income and the average additional income of the female employee's spouse and NIS 5,510, but not more than NIS 1,650.
(d)Notwithstanding the provisions of subsections (a) to (c) and sections 6 and 6b, if an adapted minimum wage has been determined for a female employee as referred to in subsection (a), the provisions of subsections (a) and (b) shall be read in relation to her, with respect to the period for which the adapted minimum wage has been determined, such that in every place, instead of "NIS 920" and instead of "NIS 4,150" there shall come such amount multiplied by the coefficient, and instead of "NIS 1,950" there shall come "NIS 6,100 less the product of 4,150 multiplied by the coefficient"; for the purposes of this subsection, "adapted minimum wage" and "coefficient" – as defined in section 6(b).
(e)Notwithstanding the provisions of sections 7(a)(1) and 17(b)(2)(a), if an employed or self-employed female employee submitted a one-time application to receive grants under this section, the Director shall determine, in respect of each tax year, by 15 July of the following tax year, her entitlement to a grant and the amount of the grant due to her as referred to in section 9, based on the information in his possession; if the Director determined that the female employee is entitled to a grant as aforesaid, the grant shall be paid to her at the times prescribed in section 12(1).
(f)In addition to the provisions of subsection (e), from the 2024 tax year onwards, and notwithstanding the provisions of sections 7, 9 and 12, 75% of the grant amount to which a non-self-employed female employee who submitted a one-time application under subsection (e) is entitled shall be paid to her in the tax year in respect of which the grant is paid, without submitting an additional claim or application, at the following times: 25% of the grant shall be paid by 15 April, 25% of the grant shall be paid by 15 July and 25% of the grant shall be paid by 15 October, and the remainder of the grant to which the female employee is entitled shall be paid to her by 15 July of the following tax year; the Minister of Finance, with the approval of the Finance Committee of the Knesset, may prescribe provisions and required adjustments for the purpose of implementing the provisions of this subsection.
(g)
(1)A non-self-employed female employee who has reasonable grounds to assume that she will be entitled to a grant under this section in respect of the 2022 or 2023 tax year may submit, from 1 April of each of those years, an application to receive an advance on account of the grant in respect of that year, provided that the female employee declared in such application the amount of her income and her spouse's income in the preceding months of the tax year, and the Director found that there are reasonable grounds to assume that she will be entitled to a grant in respect of that tax year;
(2)the advance referred to in paragraph (1) shall be at the rate of 60% of the grant that the female employee may be assumed to be entitled to in respect of that tax year;
(3)the Israel Tax Authority shall transfer the first payment of an advance as referred to in paragraph (2), at the rate of 15% of the grant to which the female employee is entitled in respect of that tax year, within 15 days of the date of submission of the application, with Sabbaths and holidays not counted in the reckoning of days; additional payments at the rate of 15% of the grant each shall be paid by the following times: 15 July of the tax year in respect of which the grant is paid, 15 October of the tax year in respect of which the grant is paid, and 15 January of the following year;
(4)the provisions of section 16(b) shall apply to an advance under this subsection.
Conditions for Receipt of the Grant§
7.
(a)An employee as referred to in section 2, 6b, 6b1, 6b2 or 6e shall be entitled to a grant under the provisions of this Chapter, upon the fulfilment of all of the following:
(1)the employee submitted to the Director a claim for receipt of the grant, in a form prescribed by the Director, in the period from the end of the tax year in respect of which the grant is claimed until 30 November of the following tax year, and the Director may extend the period for submission of the claim under this paragraph if he considered that it is just in the circumstances of the matter, until a date not later than two years from the end of the tax year in respect of which the grant is claimed;
(2)every employer who paid the employee employment income in the tax year in respect of which the grant is claimed submitted to the Director, by 30 April of the following tax year, an online employer's report under the provisions of section 166 of the Ordinance, and if the employer was an individual who employed the employee in his private household – the employer reported the employee's income to the National Insurance Institute under the provisions of the National Insurance Law;
(3)in respect of an employee who is required to submit a report under section 131 of the Ordinance or whose spouse is required to submit such a report – the employee or his spouse, as the case may be, submitted in the following tax year a report or an online self-employed report, as the case may be, in accordance with the provisions of section 131 of the Ordinance and at the times referred to in sections 132 and 133 of the Ordinance.
(b)If the Director considered that in the circumstances of the matter it is not just to deny entitlement to a grant of an employee whose employer did not submit an online employer's report under section 166 of the Ordinance as referred to in subsection (a)(2), or of an employee who, or whose spouse, as the case may be, did not submit a report or an online self-employed report, as the case may be, under the provisions of section 131 of the Ordinance as referred to in subsection (a)(3), he may direct, notwithstanding the provisions of those subsections, that the employee shall be entitled to a grant, provided that the employee proved, to the satisfaction of the Director, the amount of his income and his spouse's income in the tax year in respect of which the grant is claimed.
(c)The Minister of Finance, with the approval of the Finance Committee of the Knesset, may prescribe categories of cases in which an employee shall be entitled to a grant even though his employer did not submit an online employer's report under section 166 of the Ordinance as referred to in subsection (a)(2), and may prescribe alternative methods of proof of the scope of the employee's employment income in the tax year in respect of which the grant is claimed.
Updating of Amounts§
8.
(a)The amounts specified in this Law shall be updated on 1 January of each year in accordance with the rate of change of the index known on the date of the update, compared with the index that was known on 1 January of the preceding year; the updated amounts as aforesaid shall be rounded to the nearest amount that is a multiple of NIS 10.
(b)The Director shall publish in a notice in Reshumot (Official Gazette) the updated amounts under subsection (a).
Determination of Entitlement§
9.
(a)Where an employee has submitted to the Director a claim for receipt of a grant as referred to in section 7(a)(1), the Director shall determine, by the end of 90 days from the date of submission of the claim or by 15 July of the following tax year, whichever is later, the employee's entitlement to a grant and the amount of the grant based on the information provided to him by the employer, the employee, the employee's spouse – if the spouse is required to submit a report as referred to in section 7(a)(3) – the withholder and the National Insurance Institute, in accordance with the provisions of this Law and the provisions of the Ordinance, as the case may be.
(a1)
(1)If the Director found that additional information beyond the information provided to him under subsection (a) is required for the purpose of determining the employee's entitlement to a grant, he may require the employee to provide him with the additional information; if the Director required additional information as aforesaid, he shall determine the employee's entitlement to a grant and the amount of the grant within 180 days from the date on which the employee provided him with the additional information;
(2)if the employee did not provide the additional information that he was required to provide under paragraph (1) within four years from the end of the tax year following the following tax year, the employee shall not be entitled to a grant.
(b)The Director may, on his own initiative or at the employee's request, correct his determination as referred to in this section, within three years from the date on which it was given, if new facts have come to light or if he found that an error was made in its determination.
Objection§
10.
(a)If an employee disputes the Director's determination under section 9, he may request the Director, within 30 days from the date on which the determination was communicated to him, in a reasoned written notice of objection, to reconsider his determination and to amend it; the Director may extend the period for submission of an objection under this subsection if he considered that it is just in the circumstances of the matter.
(b)The Director shall give a reasoned written decision on the objection within 90 days from the day on which he received the notice of objection or within 90 days from the day on which all the documents and particulars that the objector was required to furnish were furnished to him, whichever is later, and shall deliver his decision as aforesaid to the objector; if the Director did not give a decision as aforesaid during that period, the objection shall be deemed to have been accepted.
(c)The Director shall not decide to reject the objection, in whole or in part, without the objector having been given an opportunity to state his arguments orally, if the objector so requested.
Appeal§
11.
An employee who considers himself aggrieved by the Director's decision on an objection under section 10 may appeal against it to the District Court in whose jurisdiction his place of residence is situated; the provisions of sections 154 and 156 to 158 of the Ordinance shall apply to the appeal, with the necessary modifications.
Manner of Payment of the Grant§
12.
Once the employee's entitlement to the grant and the amount of the grant have been determined pursuant to section 9, the grant shall be paid to the employee through the Israel Tax Authority, to his bank account as notified by him in the claim submitted pursuant to section 7(a)(1), at the times set out below, as the case may be:
(1)where the claim was submitted by 30 June in the following tax year, the grant shall be paid in four equal instalments at the following times: on 15 July, on 15 October and on 15 December in the following tax year, and on 15 February in the tax year thereafter;
(2)where the claim was submitted by 30 September in the following tax year, the grant shall be paid in three equal instalments at the following times: on 15 October and on 15 December in the following tax year, and on 15 February in the tax year thereafter;
(3)where the claim was submitted by 30 November in the following tax year, the grant shall be paid in two equal instalments at the following times: on 15 December in the following tax year, and on 15 February in the tax year thereafter;
(3a)notwithstanding the provisions of paragraphs (1) to (3) and (5), if the amount of the grant determined is NIS 950 or less, the grant shall be paid in a single instalment at the time at which the first instalment is payable under the said paragraphs, according to the time of submission of the claim;
(3b)the Director may pay an instalment of the grant at an earlier time than the time fixed in paragraphs (1) to (3), for all entitled persons, if he finds that special circumstances exist that justify doing so; the Director shall publish a public notice of the advancement of the time as aforesaid, on the website of the Israel Tax Authority and in any other manner he deems appropriate;
(4)where the Director has extended the time for submitting the claim in accordance with the provisions of section 7(a)(1), he shall determine the times for payment of the grant in accordance with the time he has fixed for submitting the claim, with the necessary modifications;
(5)where the Director has requested additional information from an employee pursuant to section 9(a1), the first instalment of the grant shall be paid according to the time fixed in paragraphs (1) to (4) in accordance with the time of submission of the claim, or within three months from the day on which the employee's entitlement to the grant was determined, whichever is the later; the remaining instalments shall be paid in accordance with the times fixed in paragraphs (1) to (4), as the case may be.
Overpayment§
13.
(a)Where a grant was paid to an employee in an amount exceeding the amount of the grant to which he is entitled under this Chapter, the employee shall repay the difference between those amounts (in this section – the excess amount), through the Israel Tax Authority, within 90 days from the day the Director delivered to him a demand for repayment.
(b)The excess amount shall be repaid together with linkage differentials, from the day it was paid until the day of repayment, and if the Director was satisfied that the excess amount was paid as a result of an act or omission of the employee in an attempt to obtain the grant by deceit – together with linkage differentials and interest, on the excess amount, from the day it was paid until the day of repayment.
(c)Notwithstanding the provisions of subsections (a) and (b), the Director may direct that the excess amount shall not be collected or shall not bear linkage differentials, as referred to in those subsections, if he finds that it is just to do so in the circumstances of the matter, including on account of the financial situation of the employee, provided that he shall not so direct if he was satisfied that the excess amount was paid as a result of an act or omission of the employee carried out in an attempt to obtain the grant by deceit.
(d)The provisions of the Tax Ordinance (Collection) shall apply to the excess amount and to linkage differentials and interest as referred to in subsections (a) and (b), as if they were a tax.
(e)The excess amount shall be set off against any amount due to the employee under the provisions of this Law.
(f)The Minister of Finance may prescribe a minimum excess amount for collection and set-off; where the Minister has prescribed such an amount, an amount lower than the said amount shall not be collected or set off under the provisions of this section.
(g)In this section and in section 14, "linkage differentials and interest" as defined in section 159a of the Ordinance.
Underpayment§
14.
Where a grant was paid to an employee in an amount lower than the amount of the grant to which he is entitled under this Chapter, the difference between those amounts (hereinafter – the shortfall amount) shall be paid to the employee through the Israel Tax Authority, together with linkage differentials and interest on the shortfall amount, from 15 February in the tax year following the following tax year until the day of payment of the shortfall amount.
Receipt of Grant Unlawfully§
15.
(a)An employee who submitted a claim pursuant to section 7(a)(1) and included therein false information relating to any matter or thing affecting his entitlement to a grant under this Chapter (hereinafter – a false claim) is liable to one year's imprisonment.
(b)An employee who submitted a false claim shall not be entitled to a grant under this Law in the tax year in respect of which the grant was claimed, in the following tax year, or in the tax year thereafter.
Status of Grant§
16.
(a)Notwithstanding the provisions of any law, a grant paid under this Chapter shall not be regarded as income for the purposes of –
(1)the Ordinance, or for the purposes of compulsory payments or other levies under any law;
(2)the National Insurance Law;
(3)the Income Support Law, 5741-1981;
(4)the Maintenance (Guarantee of Payment) Law, 5732-1972;
(5)the National Health Insurance Law, 5754-1994;
(6)the Allowances for Prisoners of Zion and Their Family Members Law, 5752-1992.
(b)The right to a grant under this Law is not transferable, chargeable or attachable, in any manner whatsoever, except for the purpose of paying maintenance owed by an employee entitled to a grant, pursuant to a judgment of a court or a competent tribunal; the provisions of this subsection shall also apply to a grant paid pursuant to the provisions of section 12 to the employee's bank account, for 90 days from the day it was so paid.
(c)Notwithstanding the provisions of subsection (b), if an employee dies, his heirs shall be entitled to receive a grant under this Law in his stead, provided that the employee or his heir performed all those acts and things that the employee would have been required to perform under this Law for the purpose of receiving the grant, and that the heir produced to the Director a succession order or a probate order, and also provided that the heir provided the Director with the bank account details of one of the heirs to which the grant is to be transferred.
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חוק להגדלת שיעור ההשתתפות בכוח העבודה ולצמצום פערים חברתיים (מענק עבודה), תשס"ח-2007
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