“The beginning of a revolution”: Grant of up to NIS 21,000 to Israeli workers in wet construction work

According to the new agreement approved by the Knesset Labor and Welfare Committee, new Israeli workers in the industry will be entitled to a grant of up to NIS 21,000, provided that the worker is employed at least 11 days a month and has undergone training. CEO of the Fund for the Encouragement and Development of the Construction Industry: “A great achievement, numbers that will provide a tailwind”

By Dror Nir Kastel, Nadlan Center

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Last Sunday, the Knesset Labor and Welfare Committee, headed by MK Israel Eichler, approved a new agreement between the government and the National Insurance Institute aimed at incentivizing new Israeli workers to integrate into the construction industry and extended the agreement in force to include workers who began working in April.

According to the agreement, new Israeli workers in the construction industry will be entitled to a grant of NIS 2,000 for each of the first 4 months of employment and NIS 3,000 for the fifth and sixth months, provided that they were employed in each of them consecutively from the previous month. An increased grant of 1.5 times will be given to workers employed in “wet work” (formwork, floors, iron, plastering, etc.).

In other words, this grant may reach NIS 14,000 without an increase and NIS 21,000 for wet work. This is a change in the agreement from last November, according to which the total grants were only NIS 10,000.

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The original agreement defined the eligibility period for employees who began working in the industry in June through December 31, 2024. However, at the committee’s request, it was decided to bring forward the eligibility to include employees who began working on April 1. In addition, the committee extended the validity of the agreement by another year so that an employee can apply for grants until the end of 2026 and also determined that an employee will be able to receive the training required for eligibility in the employer’s yard for 40 hours – both in the construction industry and not only in the renovation industry.

Eligibility for the grants is conditional on the employee being employed for at least 11 days a month, at a minimum salary of NIS 2,786 and up to NIS 25,000 per month, and on the performance of construction training carried out or recognized by the relevant government ministries or as stated in the employer’s training, subject to the employer’s declaration to perform training of at least 40 hours.

Committee Chairman MK Israel Eichler said, “This is a very important incentive that will help bring new workers to the industry when construction in the State of Israel stands paralyzed without the possibility of accepting workers from outside.”

“This is already the beginning of a revolution”

David Yahalomi, CEO of the Fund for the Encouragement and Development of the Construction Industry and Head of the Infrastructure Bureau, promoted the move in cooperation with Adv. Natalie Shimon Weinstein, CEO of the Association of Renovation Contractors and the Construction Workers Union, says: “Our part was, first of all, to advance by 1.4 and to introduce the renovation industry with OJT (On-The-Job Training), that is, according to the affidavit of the renovation contractor that the employee did 40 hours of training and with our involvement it was extended to all contractors,  not only for the renovation industry but also for the construction industry. We have trained about 2,000 Israelis to date, but between the training and the fact that they will endure it is a great challenge, hence the criticality of this grant, certainly during the summer months.”

Unfortunately, all the moves to bring in foreign workers have failed because of various barriers, and it seems that elected officials have understood that the solution lies within and not beyond our borders.

— Real estate developer Adv. Aviv Tasse

According to a publication in Mercaz HaNadlan in January, only 91 Israelis applied for grants. Yahalomi says: “To date, according to National Insurance Institute data, there have been 550 applications since the beginning of the war. Now, with the new grant, when the issue goes into effect, and there will be publications, this will reach 2,000-2,500 applications, and these are already encouraging numbers, which will give a tailwind both to the employees and to the next wave of training that we want to do. Ultimately, they want to base the industry on Israeli workers, who number fewer than foreign and Palestinian workers. We can’t do that overnight; it’s a process of years. Many Haredim are also entering the industry through our training, and this is already the beginning of a revolution.”

He added, “NIS 30 million was allocated for this issue, and we wanted to include the workers from January 1 as well, but we had to make a decision to throw it out or go for the majority. We believe that most Israelis who have entered and will enter the industry will benefit from this grant.”

According to real estate developer Adv. Aviv Tasse, owner of Agam Shavit Real Estate Development, the decision of the Labor and Welfare Committee is a bright light at the end of the tunnel in the crisis in which the real estate industry has been experiencing since the beginning of the war. “As far as the state is concerned, this is a relatively small investment ensuring continued tax receipt from the real estate industry. Unfortunately, all the moves to bring in foreign workers have failed because of various barriers, and it seems that elected officials have understood that the solution lies within and not beyond our borders. Now, the state must leverage the decision through an information campaign for young Israelis, which will present the move as an opportunity to enter the real estate industry.”

The contents of this article are designed to provide the reader with general information and not to serve as legal or other professional advice for a particular transaction. Readers are advised to obtain advice from qualified professionals prior to entering into any transaction.

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