Employers Are Now Exempt From Paying Bituach Leumi for Employees...

The Knesset approved an exemption for employers of paying Bituach Leumi contributions for their employees that were placed on unpaid leave during the Coronavirus period, in the second and third readings yesterday (Mon). The exemption was proposed by Prime Minister Binyamin Netanyahu and Finance Minister Yisrael Katz for more than 145,000 employers whose employees went on unpaid leave during this time.

Up until this point, employers were required to pay Bituach Leumi contributions of NIS 348 (6.57% of the minimum wage) for each of the first two full months of the employee on unpaid leave. For employees who have been placed on unpaid leave multiple times, the payment of close to 700 NIS is required every time. Furthermore, the employer was also entitled to demand the Bituach Leumi payment from the employee for those two months.

The exemption from payment will be given to employers for an employee who has been placed on unpaid leave in the period between April 2020 and April 2021, with an option of extension by the Ministry of Finance until June 2021.

Additionally, the Knesset determined that the rights of employees on unpaid leave for whom Bituach Leumi contributions were not paid due to the exemption, will not be violated. The scope of the proposed exemption is estimated at NIS 500 million. The exemption will help both employers and employees on unpaid leave to better deal with the Corona crisis.

According to Katz, "The Corona crisis brought challenges for both workers and employers. The proposal approved today will make it easier for employers during this period, without harming the working public, while maintaining social responsibility, until the State of Israel emerges from the crisis and returns to its previous economic strength." .

©ShemeshOnline
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