What are the expenses when employing a foreign caregiver

When an elderly person needs regular help, many of us prefer employing a foreign caregiver, especially those for whom moving the senior to a nursing home (diur mugan) is too expensive or painful. The expenses for employing a foreign caregiver include more than his or her salary.

The following are all the expenses involved in employing a foreign caregiver:

Fees to the Ministry of the Interior

There are two types of fees: a fee of NIS 300 paid as part of the process of issuing a license/permit to an employee or renewing his employment permit, and a fee of NIS 175 for the employee's entry into the country. The transaction permit is renewed every 4 years.

Commission and contract fees for the agency (taagid or koah adam in Hebrew)

The agency (taagid) that deals with bringing in foreign caregivers is the intermediary between the employee and the employer. Each agency charges a different brokerage fee, so it is recommended to conduct a comprehensive survey before choosing the agency you will cooperate with. According to the law, the fee is limited to a maximum of NIS 2,000. This commission includes a one-year warranty so that if the employee leaves or is fired the agency is responsible for providing another employee at no extra charge.

Connection fees are a monthly fee charged each month for accompaniment and assistance in resolving any issues that arise. This is a monthly payment of up to 70 NIS.

Employee's salary

A worker employed in Israel is entitled to the minimum wage for his work, which is currently 5,300 NIS. An experienced employee may demand a higher salary. In addition to this minimum wage, which is updated from time to time, further monthly sums are paid.

An employee who chooses to work on his weekly rest day (employees are entitled to a weekly rest day and 9 holidays a year according to their choice) will receive 150% of the regular daily wage for that day.

Social benefits

A foreign caregiver should receive the same social benefits as any Israeli worker.

Pension

After a certain period, the employer must set aside 6.5% for a pension fund and 6% for severance pay (pitzuyei piturim in Hebrew). These benefits will be received by the employee after he ends working.

Recuperation Pay (dmei avraa in Hebrew) is payed annually, when in the first year it consists of the payment for 5 days and is currently calculated according to 378 NIS per day. Each year an additional day is added, or additional 378 NIS to the amount. The employee has 16 days off per year which he can redeem in full at the end of the period of his employment. If he redeems them before, he is entitled to a redemption of 14 days. The amount for one working day is derived from the salary calculation (eg 5,300 if it is minimum wage) per day.

4. Sick pay:

As an employer, you must obtain the Sick Pay Law: the employee is entitled to one and a half sick day per month, a maximum of 90 days per year. On the second and third day the amount of sick pay is 50% of the normal daily amount and from the fourth day the sick pay is equal to the daily pay. A foreign caregiver starts accumulating sick days from the beginning of his work and at the end of the work period he will receive the amount for the unused sick days.

Medical insurance: The employer must provide medical insurance to the foreign caregiver in order to cope with all his medical needs.

Social Security: Social Security is paid in accordance with the long term care benefit that the elderly receives and the sum of the supplement he pays to the employee. If an employer pays the caregiver up to NIS 5,500 in addition to his long term benefit, he is exempt from paying Social Security for the foreign caregiver. If he pays more than NIS 5,500, he must pay the amount in excess of NIS 5,500. A long term nursing benefit is payed through a nursing company that issues a pay slip to the employee or directly to the elderly who is entitled to the benefit.

Termination of employment: At the end of the employment, the employee will receive a relatively final salary and all the payments listed above in accordance with what the employee has accumulated (days off, sick pay, etc.).

Deductions from the employee's salary: It is possible to deduct from the employee's salary an amount that includes participation in health insurance and related expenses such as housing, bills and more. According to the law, the maximum deduction amount is up to 25% of the employee's salary.

All data are relevant to 2019 only.