NIS 500m. plan to help employers with National Insurance Institute
The scope of the proposed exemption, which was put forward by Prime Minister Benjamin Netanyahu and Finance Minister Israel Katz, is estimated at NIS 500 million.
By ZEV STUBIsraeli shekels(photo credit: Courtesy)
The Ministerial Committee on Legislation on Sunday night approved a proposal to exempt more than 145,000 employers from paying National Insurance Institute (NII) contributions for employees who went on unpaid leave (halat) during the coronavirus pandemic.Before the amendment, employers were required to pay social security of NIS 348 (6.57% of the minimum wage) for each of the first two months of unpaid leave. The exemption will be given for up to two months between April 2020 and April 2021, with the finance minister having the option to extend it through June.The cost of the proposed exemption, which was put forward by Prime Minister Benjamin Netanyahu and Finance Minister Israel Katz, is estimated at NIS 500 million, the Finance Ministry said.The rights of employees for whom NII contributions were not paid will not be affected, according to the proposal.“The amendment is another important step that will make it easier for business owners and remove from them the burden of paying insurance premiums on their employees who are not employed in the business,” Katz said. “I will continue to work to formulate solutions for business owners, in parallel with the assistance provided by the safety net, until the economy returns to full routine and growth.”
