Supreme Court Decision about Deposit Funds (PIKADON) Supreme Court Decision about Deposit Funds (PIKADON)

Pension Insurance: For Foreign Caregivers from a Private Employer

iSavta | 07.12.2020

Few years ago when Labor Laws on Foreign Workers in Israel was quite different from today, most of the foreign caregivers were not aware of the "pension" insurance. Most of them are looking forward to the Recuperation Pay and/or Severance Pay that are payable to them once the completed a year of work with an employer and/or the employment was terminated because the employer died of the family no longer need the caregiver's help with their loved one.

Today, the implementation of the right of a migrant caregiver to a pension insurance is crucial and it is important for both parties to understand the guidelines regarding this.

The Commission of Foreign Workers Labor Rights in Israel issued a thorough guideline last December 3, 2020 on their official Facebook page in order for the caregivers as well as the employers to understand and be guided accordingly.

Please read below:

An extension order for comprehensive pension insurance, which came into force in 2008, stipulates that every employee in Israel is entitled to provisions for pension insurance from the employer. This obligation also applies to employers of foreign workers. The provision rates are the same as the provision rates in which the employer owes pension insurance to Israeli workers.

In certain industries (eg building and hotels), the provisions will be transferred to a special account managed by the Payments Section of the Population and Immigration Authority (pikadon).in industries where the obligation to deposit in the deposit fund has not been determined, such as patients in the caregiving industry, the rule of "approximate execution" applies, which was determined by the Labor Court.

We have prepared for you guidelines for the "approximate rule of implementation" which refers to pension insurance provisions for a foreign caregiver from a private employer.