Pension: Payment for Migrant Caregivers
The iSavta Team | 12.11.2019
To All Migrant Caregivers in Israel, please read carefully:
A 2008 decree requires employers to set aside a pension fund for each worker, starting from the 7th month of the work.
According to the Labor Ministry instructions, employers of migrant workers must deposit the funds set aside in a bank account bearing the employee's name, and the sum must be given to the employee upon the termination of the job. Part of the sums (a bit more than a half) are defined as pension sum, and the other part - for the separation pay. The percentage changed since 2008 - see the table below. The exact sums are the percentage from the full minimum wage (now - 5000 NIS).
In case the worker receives part of his/her monthly salary from an agency (Bituach Leumi), that agency should set aside the pension for their part of the salary, and the employer should set aside the rest of the amount, up to the full minimum salary. In case that all the salary is paid by the employer, then the employer should set aside the full amount. (comment: since Nov 2016, the agencies should pay the pension sums for their part of the salary to the State Deposit Fund, to be given to the caregiver when the caregiver leaves the country. The pension sums saved for the caregiver by the agency until Nov 2016, should be given to the caregiver upon the termination of the job just like the pension sums from the employer).
If a worker is legally eligible for a full separation pay (i.e. worker was fired, or gave birth, the employer died, etc.), then the sums that should be given to him/her, and the other half, the sums set aside for separation pay, should be given as part of the full separation pay (based on the last salary salary (at least full latest Minimum Wage X 1 month per year).
If a worker is not eligible by law for full compensation, as he/she initiated the termination of the job of his/her free will, then he/she is eligible to receive the all the funds that were set aside, for both components of pension and separation pay. Note that if the employer has not deposited any money for the caregiver in a special bank account - then the sums should be calculated upon the termination of the job, and paid to the caregiver at that point. (comment: this claim is based on several precedents already issued by court).
The table below shows the percentage that needs to be set aside, according to the gradual dates, and must be used to calculate compensation and pension pay backs for workers who were employed over these time spans:
|From Date||Employer's Deposit to Pension||Employer's Deposit To Separation Pay||Total|
January 1, 2008
|January 1, 2009||1.66%||1.66%||3.33%|
|January 1, 2010||2.5%||2.5%||5%|
|January 1, 2011||3.34%||3.34%||6.67%|
|January 1, 2012||4.18%||4.18%||8.36%|
|January 1, 2013||5%||5%||10%|
|January 1, 2014||6%||6%||12%|
|July 1, 2016||6.25%||6%||12.25%|
|January 1, 2017||6.5%||6%||12.5%|
Originally Posted by Kav Laoved on their Official Facebook Page.
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