War Grants For Farm and Construction Workers
The Israeli government has introduced a program of grants for Israelis who choose to start working in agriculture or construction in Israel (https://www.btl.gov.il/HaravotBarzel1/Pages/MankTimrozHB.aspx) .
Background.
Not only Jews suffered on the October 7. Tragically, some foreign workers from Thailand and elsewhere were also killed then and others were taken hostage into Gaza by Hamas where they were apparently roughed up and mistreated. Not surprisingly, most remaining foreign workers headed home resulting in labor shortages in Israel. Hence the Israeli government is now offering grants as a prize for new Israeli entrants into these sectors. Many Israelis are flocking to fill the gaps on a voluntary basis. Is it time to go pro?
Who is eligible for grants?
Grants are available to applicants who meet all the following conditions: (1) Israeli resident employee; (2) Began working in agriculture or construction during the period October 7-December 31, 2023 and did not work in those sectors in July 2023, (3) Worked physically (not remotely) at the work place at least 11 days per month, and earned at least NIS 2,786 gross. Those 11 days don’t include working at home, vacation, vacation pay or sick pay.
What type of work?
For examples of work that do and don’t qualify, see here (in Hebrew): https://www.btl.gov.il/HaravotBarzel1/Pages/AvodotMAankTimroz.aspx.
The types of agricultural workplace listed include farm produce, nurseries, livestock, packing and sorting, Jewish National Fund activities.
For example, in the case of farm produce, eligible activities include: non-professional planting, picking, pest control, security and guarding, but NOT guarding agricultural settlements, public or private gardening (except at a building site), working in a shop selling agricultural products or internet marketing of agricultural products.
The types of construction site listed include: infrastructure and building systems, construction and renovations, gardening and maintenance, building professions such as surveying, quality control and concrete testing.
For example, in the case of construction and renovations, eligible activities include working in construction crafts on a building site, extensive renovations (changes or additions), strengthening buildings, but NOT painting, plastering, roof pitching, landscaping, pest control or polish in exiting buildings.
Eligibility period:
Grants may be claimed for up to three consecutive months in the period November 1, 2023 to March 31, 2024.
Amount:
In non-evacuated areas, grants are NIS 3,000 for the first two months, NIS 4,000 in the third month, total NIS 10,000. In evacuated areas, these amounts are doubled. Comment: It is unclear whether these amounts are taxable.
Procedure:
The employer files an online request for the grant for the employee each month at the beginning of the following month. Before that, the employer should file the salary data on Form 100. The online system is under construction. Comment: Does this encourage the employer to reduce the salary by the amount of grant claimed for the employee?
If the employer fails to file the request, the employee can file the request 60 days after the relevant month. For example, regarding November 2023, the employee must wait until February 2024. Comment: In these hard times, 60 days is a long time to wait.
The employee must declare the he/she did not work in agriculture or construction in July, by test on his phone.
The request must be filed by March 31, 2025.
Payment:
Payment is made to the bank account of the employee. For requests approved in the first 17 days of a month, payment is made by the 20th of the same month. If approval occurs from the 18th to 27th, payment is made on the 1st of the next month. If payment is made on the 28th to the 31st, payment is made on the 20th of the next month. Comment: approval time is not stated.
No double benefits:
It is not possible to receive both the back-to-work grant and the farm/construction grant regarding any month. And it is not possible to receive double grants regarding work at more than one employer the same month.
Next Steps:
Please contact us to discuss any of the above matters further, or any other matter.
As always, consult experienced legal and tax advisors in each country at an early stage in specific cases.
(c) Leon Harris 24.12.2023