Employment Grant Program

 

In order to complement the revised Law for the Encouragement of Capital Investments the government has decided to establish an additional program to increase employment in the outlying areas of Israel as well as specific centers with high unemployment.

Support will be granted for the establishment or expansion of industrial plants, telephone call centers, computer service support centers or logistic centers.

In order to be eligible for this program these enterprises will have to employ a minimum number of workers at a minimum wage as detailed below.

The initial budget for this program is 450 million NIS (approximately $100 million) to be spread over 3 years -150 million NIS per year. The maximum support per worker will be 120,000 NIS (~ $26,000)  or   2,000 NIS (~ $ 440) per month.

 

The main points of the program are as follows:

 

The Format

 

In order to be granted the support from this program companies will have to compete.

Twice a year companies will be invited to make proposals. The budget allocated for each round will be 75 million NIS.

 

Eligible Areas

 

1. The "Furthest Periphery" , south of 75 latitude (north of Carmiel) and 

       north of the 258 latitude( Beer-Sheba)

2. Priority Development Areas "A" and "B" as designated in the Law for the Encouragement of Capital Investments
3. Designated towns of the Minorities population (Arab, Druze, Circassian) or the Ultra-Orthodox Jewish population.( Elad,  Modi'in Elite , Betar Elite, Immanu'el)

 

Wages Level

The enterprise must pay its employees the following minimal wages at least:

 

1. In the Minorities and Ultra-Orthodox towns, the minimum wage.
2. In all other eligible areas - 6,750 NIS average monthly wages.

 

Number of Workers

The enterprises should employ a minimal number of workers.

With regard to a newly established plant:

1. In the "Furthest Periphery"  and in towns of the Minorities

       and Ultra-Orthodox – 15 workers

2. In Priority Area "A" – 25 workers
3. In Priority Area "B" – 50 workers.

 

With regard to an expansion – at least 20% additional workers.

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Amount of Support:

 

The maximum amount of support that will be granted will be as follows:

 

1. All areas: 15% of the cost of the average monthly wage of the additional workers employees, but no more than 120,000 NIS per worker for the entire period.
2. Minority and Ultra-orthodox towns: as above. Enterprises paying wages below 6,750 will be entitled to support of no more than 60,000 NIS.
3. In spite of the above the total average support per in each allotment round enterprise will not be more than 100,000 NIS per worker.

 

Procedure for presenting proposals:

 

Submission date: 

The proposals should be delivered in 6 copies, in a sealed envelope by August 22^nd. , 2005 ( 12:00 p.m.) to the Proposals Box of the Israel Investment Center , 5 Bank of Israel Street ( 2^nd. floor), Jerusalem.

 

Public Meeting :

A meeting to provide answers and clarifications to questions of interested parties will take place on  August 8^th. , 2005 , 10:00-14:00 at the Israel Manufacturers Association, 29 Ha\-Mered Street, Tel-Aviv.

 

It is obligatory to attend this meeting for all parties intending to participate.

 

Queries:

Mr. Asher Shitrit,

Israel Investment Center,

Ministry of Industry, Trade and Labor,

5 Bank of Israel Street,

Jerusalem 91490.

 

Tel: 972-2-666.2236 Fax: 972-2-666.2905

 

All queries to be submitted in writing.

 

 

REMARK: This document is a summary of the original document in Hebrew. For full details of the Employment Grants Program the original Hebrew document should be consulted.