Foreign workers in Israel: the rights the law gives them, and how to claim them

Service page: A claim against an employer for wages, pension and overtime.

The first rule: employment law applies to whoever works — not to whoever holds a visa

The most common mistake in this area, among workers and employers alike, is an assumption. People assume the rights “start” only when the paperwork is in order. That is not the case. The protective laws of Israeli employment law apply to employer-employee relationships that exist in Israel. They are mandatory (cogent): they cannot be contracted out of, not even with the worker’s consent. The employment itself may have been unlawful: without a permit, or after the visa expired. Even then, that fact does not erase what is owed to the worker. It creates an offense by the employer, not an exemption for the employer.

This logic is also written into the Law itself. The Foreign Workers Law does not settle for prohibiting unlawful employment. The title of its Chapter B is “Conditions of employment”. It sets a series of duties that the employer owes to the worker. Breaching them is a criminal offense, separate from the offense of employment without a permit. In other words, the Law treats the foreign worker as a person with rights, not as a licensing problem.

The practical meaning is this. A foreign worker may not have received the minimum wage, or forbidden amounts were deducted from their wage. Or they did not receive health insurance, or were housed in an unfit place. They can sue in the Labor Court. At the same time, they can file a complaint with the Commissioner for Foreign Workers’ Rights.

A written employment contract — in a language you understand

Section 1C of the Foreign Workers Law requires the employer to engage the foreign worker under a written employment contract, in a language the foreign worker understands. The employer must give the worker a copy of it. This is not a recommendation: breaching it is a separate criminal offense under section 2(b)(2) of the Law.

The Law also sets what must be written in the contract. These are the ten details:

• the identity of the employer and the identity of the foreign worker;
• a description of the job;
• the wage, its components, how it is updated and the payment dates;
• the list of deductions from the wage — any deduction that does not appear on this list is suspect from the outset;
• the employer’s and the worker’s payments for social benefits;
• the start date of the work and the period of work;
• the length of the regular working day or working week, including the weekly rest day;
• conditions for paid absence — vacation, holidays and sick days;
• the employer’s duties under sections 1D and 1E (health insurance and housing) and under the deposit chapter;
• the details of the Commissioner for Foreign Workers’ Rights, the ways to contact them and the right to file a complaint with them.

Section 1C(c) adds an important clarification. The contract does not detract from a collective agreement, an extension order or any law that applies to the worker. In other words — the contract can only add to the floor, not go below it. More on what must appear in every employment contract in Israel is in the guide Employment contract: what must be written in it.

In addition, section 1F requires the employer to keep at the workplace a copy of the contract and a correct translation of it into Hebrew. A worker who asks to see their contract is entitled to receive it, and the employer is expected to keep it within easy reach.

Health insurance — at the employer’s expense, with a capped deduction

Under section 1D of the Law, the employer must arrange, at its own expense, health insurance for the foreign worker. It must cover the whole period of their work with it, and the basket of services set by the Minister of Health. The employer may deduct part of the cost from the wage — but only at the rate set in the regulations, and no more.

Under the Foreign Workers Regulations (Rate of Deduction from Wages for Health Insurance Premiums), 5762-2001 (תקנות עובדים זרים (שיעור ניכוי מהשכר בעד דמי ביטוח רפואי), התשס״ב-2001), the maximum deduction is:

• A worker who is not a caregiver: up to one third of the amount the employer actually spent. In any case, it is no more than NIS 147.11 a month (the updated amount for 2026; it is linked to the CPI and updated on 1 January).
• A caregiver: up to half of the amount actually spent — and no more than NIS 168.80 a month (updated for 2026).

Regulation 5 adds a duty that many people miss. The employer must attach to the employment contract a copy of the health insurance policy, in a language the foreign worker understands. If you received a contract without the policy, ask for it in writing.

Adequate housing — until seven days after the employment ends

Section 1E requires the employer to provide the foreign worker, at its own expense, with adequate housing for the whole period of work. This lasts until a date no earlier than seven days after it ends. This rule is meant to prevent one scenario: a worker is dismissed in the morning and finds themselves on the street that same evening. Sometimes fewer than seven days remain until the end of the period of stay in Israel. Then the duty lasts for the number of days that remain.

The standards for housing are set in the Foreign Workers (Prohibition of Unlawful Employment and Assurance of Fair Conditions) (Adequate Housing) Regulations, 5760-2000 (תקנות עובדים זרים (איסור העסקה שלא כדין והבטחת תנאים הוגנים) (מגורים הולמים), התש״ס-2000). They include basic furniture and electrical appliances. These are a closet, a bed and bedding, a table and chairs, a refrigerator, a washing machine, a stove and a water heater. Lighting, and means of ventilation and heating, are also required.

Here too, the deduction is limited. The Foreign Workers Regulations (Rate of Deductions from Wages for Adequate Housing), 5760-2000 (תקנות עובדים זרים (שיעור ניכויים מהשכר בעד מגורים הולמים), התש״ס-2000) set a monthly deduction ceiling. The wording here is as amended, from 1 September 2026. The ceiling depends on the area of residence:

These amounts are linked to the rent index and to the consumer price index, and are updated on 1 January each year. So check the current amount before calculating.

The overall ceiling: 25% of the wage, and no more

This is the point where most payslips fail. The two sets of regulations set a common limit. The total of all deductions may not exceed 25% of the foreign worker’s monthly wage. This covers deductions for housing, for health insurance, and any other deduction under section 25(a)(6) of the Wage Protection Law, 5718-1958. Moreover: a term in the contract that allows deducting beyond this limit is void.

So checking a foreign worker’s payslip always starts with the same step. Add up the deduction lines for housing, for health insurance and for a debt under section 25(a)(6). Then divide by the gross wage. Mandatory deductions, such as income tax, are not part of this ceiling. Is the total above 25%? Then there is a cause of action here, and at the same time an offense under section 2(b)(9) of the Law.

A numerical example, using the amounts in force from 1 September 2026: a foreign worker who is not a caregiver lives in a permanent structure in Tel Aviv. Their monthly wage is NIS 7,000 (an amount for illustration only). Their employer pays NIS 450 a month for their health insurance.

• The overall ceiling: 7,000 × 25% = NIS 1,750.
• Housing: up to NIS 1,257 (regulation 2(a) of the regulations on deductions for adequate housing).
• Health insurance: one third of NIS 450 is NIS 150, but the ceiling is NIS 147.11. So the deduction is up to NIS 147.11 (regulation 2 of the regulations on deductions for health insurance premiums).
• Together: 1,257 + 147.11 = NIS 1,404.11.
• What remains for deducting a debt under section 25(a)(6): 1,750 − 1,404.11 = NIS 345.89, and no more.

The deposit — the money waiting for you when you leave

Chapter D of the Foreign Workers Law (section 1K onward) created a unique mechanism. Each month, the employer deposits an amount into a dedicated account in the worker’s name. The worker receives it when they leave Israel on time, plus the accumulated earnings and less commissions and tax. The Law limits the maximum monthly amount that can be set (NIS 700, linked to the CPI).

The Foreign Workers Regulations (Deposit for Foreign Workers), 5776-2016 (תקנות עובדים זרים (פיקדון לעובדים זרים), התשע״ו-2016) set the amount. The deposit equals the total of the severance component and the employer’s benefits contributions component. These are what the employer would have had to deposit in a pension provident fund under the extension orders or collective agreements that apply to it. So the deposit replaces the pension contributions, which cannot be managed for a foreign worker in a regular Israeli fund. The deposit is paid from the first month of employment, no later than the 15th of each month for the previous month.

Under the regulations, three types of employment are exempt from the deposit duty. The first is a worker in the caregiving sector employed by an individual not in the course of their business. The others are a worker in the experts sector and a worker in the agriculture sector. In these cases, the pension arrangement or the payment of severance pay is handled in another way. Find out in advance which.

The Population and Immigration Authority must let the foreign worker view the data of their deposit at any time and at no charge, on its website or by another digital means. The data are the employer’s payments, the earnings accumulated, the commissions and management fees deducted, and the validity of the visa and the license. A worker who has already left Israel is entitled to receive this information on request.

What else you are owed — exactly like any employee in Israel

Beyond the four duties that are specific to foreign workers, all the protective laws apply in full. The list to check on every payslip:

• Minimum wage under the Minimum Wage Law, 5747-1987. The amount is updated — check the rate in force at the time of the work.
• Overtime pay and weekly rest under the Hours of Work and Rest Law, 5711-1951 (חוק שעות עבודה ומנוחה, התשי״א-1951). Caregivers who live in the patient’s home are a special case. The case law of the National Labor Court has discussed it extensively, and no automatic assumptions should be made about it.
• Annual leave and sick pay under the Annual Leave Law and the Sick Pay Law, 5736-1976 (חוק דמי מחלה, התשל״ו-1976).
• Recuperation pay, holiday pay and advance notice under extension orders and the Advance Notice of Dismissal and Resignation Law, 5761-2001 (חוק הודעה מוקדמת לפיטורים ולהתפטרות, התשס״א-2001).
• Severance pay under the Severance Pay Law, 5723-1963 (חוק פיצויי פיטורים, התשכ״ג-1963) — see Calculating severance pay.
• A detailed payslip under section 24 of the Wage Protection Law. Not giving a payslip is a separate offense under section 2(b)(7) of the Foreign Workers Law. So is a payslip that does not set out the wage components.

A question that comes up again and again: does someone who was defined as an “independent contractor” lose all this? Not necessarily — the tests of an employment relationship are about substance, not form. See Independent contractor agreement: what it must include — and what can cost you dearly and Employee rights in the first year.

Your passport is yours

The employer has no right to hold the foreign worker’s passport against their will. The passport is a personal document. When the employer holds it, the worker cannot leave the workplace or the country. It is also a criminal offense. A person who unlawfully withholds another person’s passport is liable to up to three years’ imprisonment (section 376A of the Penal Law, 5737-1977 (חוק העונשין, התשל״ז-1977)). Under section 1F, the employer must keep at the workplace a copy of the employment contract and its translation into Hebrew. It must not keep the passport.

Does your employer refuse to return your passport? You may file a complaint with the police. At the same time, you can contact the Commissioner for Foreign Workers’ Rights.

Whom to contact: the Commissioner for Foreign Workers’ Rights

Sections 1V–1CC of the Law created a dedicated role: the Commissioner for Foreign Workers’ Rights at Work. The Commissioner is an employee of the Ministry of Labor with legal training and at least five years’ experience in the field of workers’ rights. Their role is to act to enforce the rights of foreign workers against employers, actual employers, manpower brokers and contractors.

Under section 1Z, any person may file a written complaint with the Commissioner, not only the worker themselves. The complaint can be about a breach of the Law, or a failure to fulfill a duty toward a foreign worker. Once a complaint has been filed, the Commissioner may, among other things:

• hold an inquiry to examine whether there is reason to file a claim;
• file a civil claim in the Labor Court — on behalf of the complainant or in their own name — to enforce the right;
• apply for a general order under section 1CC;
• refer the complaint, with the consent of both parties, to mediation within the meaning of section 79C of the Courts Law [Consolidated Version], 5744-1984.

Two practical notes. First, the Commissioner will not continue to handle a complaint whose cause of action is already being heard by a court or tribunal. So consider the order of steps. Second, the mediation route is sometimes the fastest way to actual money. For how the process works in an employment dispute and what can be achieved in it, see Mediation at work.

How to sue in the Labor Court

Jurisdiction over claims by an employee against an employer lies with the Regional Labor Court. A few points that are important to know before filing:

• No duty to be represented. A claim can also be filed without a lawyer, and for relatively small claims there is an “expedited proceeding” track.
• Language. The proceeding is conducted in Hebrew, and you can ask the court for translation.
• Documentation. When there are no payslips, any evidence helps: WhatsApp messages, shift schedules, photos of the time clock, testimony of other workers, confirmations of bank transfers.
• Deadlines. The general limitation period in a civil claim is seven years. But shorter deadlines were set for some causes of action in employment law. So do not put off taking action. For a worker who is about to leave Israel, the deadline is especially critical. See also: A wage claim against an employer.

Frequently asked questions

Is a foreign worker employed without a permit entitled to rights?

Yes. The protective laws of employment law apply to employer-employee relationships that exist in Israel, and they are mandatory (cogent) — they cannot be contracted out of. Employment without a permit is a criminal offense by the employer under section 2(a) of the Foreign Workers Law, 5751-1991. It does not exempt the employer from paying wages, overtime, vacation, recuperation pay, advance notice and severance pay. A worker in this situation can file a claim in the Labor Court and also a complaint with the Commissioner for Foreign Workers’ Rights.

How much may be deducted from a foreign worker’s wage for housing and health insurance?

For health insurance: up to one third of the amount the employer actually spent (half for a caregiver). The ceiling is NIS 147.11 a month for a worker who is not in caregiving, and NIS 168.80 for a caregiver. These are the amounts updated for 2026. For adequate housing: a ceiling by area of residence. It is NIS 1,257 in Tel Aviv, NIS 1,095 in Jerusalem, NIS 1,030 in the Center and NIS 999 in Haifa, the South and the North. For housing at a site where construction work is carried out, it is half of the amount. Above all of these, the regulations and the Wage Protection Law set a cumulative ceiling. The total deductions for housing and for health insurance, together with deductions under section 25(a)(6) of the Wage Protection Law, may not exceed 25% of the monthly wage (Kol Zchut: permitted deductions from a foreign worker’s wage).

What is the deposit for a foreign worker, and when is it received?

Under Chapter D of the Foreign Workers Law and the Foreign Workers Regulations (Deposit for Foreign Workers), 5776-2016, the employer deposits an amount each month. The deadline is the 15th of the month, for the previous month. The amount equals the severance component and the employer’s benefits contributions component that it would have had to contribute to a pension provident fund. The money is held in a dedicated account. The worker is entitled to receive it when they leave Israel on time, plus the accumulated earnings and less commissions and tax. Exempt from the deposit duty: a caregiver employed by an individual not in the course of their business. Also a worker in the experts sector and a worker in the agriculture sector.

May an employer hold on to a foreign worker’s passport?

No. The passport is the worker’s personal document. An employer that holds it against the worker’s will commits a criminal offense (unlawful withholding of a passport, section 376A of the Penal Law, 5737-1977). It also prevents the worker from leaving the workplace or the country. Under section 1F of the Foreign Workers Law, the employer must keep at the workplace a copy of the employment contract and a correct translation of it into Hebrew. A worker whose passport is not returned may file a complaint with the police. At the same time, they can contact the Commissioner for Foreign Workers’ Rights.