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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 in 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 maximum support per worker will be 135,000 NIS (~ $34,000) over a period of 30 months or 4,500 NIS (~ $1,100) 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 via a tender like system.
Eligible Areas
a. The "Furthest Periphery", south of 75 latitude (Beer-Sheba) and north of the 258 latitude (Carmiel).
b. Priority Development Area "A" as designated in the Law for the Encouragement of Capital Investments
c. 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
To qualify the enterprise must pay its employees the following minimal wages at least:
a. In the Minorities and Ultra-Orthodox towns, the minimum wage (about 3,850 NIS).
b. In all other eligible areas – 5,500 NIS average monthly wages.
Number of Workers
To qualify the enterprise should employ a minimum number of workers according to the following criteria:
a. Establishment of a new plant – at least 5 workers.
b. Transfer of a plant – the number of workers previously employed or 5 (whichever is higher).
c. Expansion of a plant – at least 5 new workers
Amount of Support:
The amount of support will be according to the following rates from the gross salary of the worker, but not more than the maximum salary of
15,000 NIS.
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Businesses in the Sderot and Gaza envelope region.
Small Businesses (up to 50 workers or annual turnover of less than 25 million NIS):
a. First 10 months – 30%
b. 11th. – 20th. month – 20%
c. 21st. – 30th. month – 10%
Medium sized Businesses (from 50-100 workers or annual turnover of 25-100 million NIS):
a. First 10 months – 25%
b. 11th. – 20th. month – 15%
c. 21st. – 30th. month – 5%
Large Businesses (up to 50 workers, annual turnover of more than 100 million NIS):
a. First 10 months – 15%
b. 11th. – 20th. month – 10%
c. 21st. – 30th. month – 5%
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Priority Area A
Small Businesses:
a. First 10 months – 25%
b. 11th. – 20th. month – 15%
c. 21st. – 30th. month – 5%
Medium sized Businesses:
a. First 10 months – 15%
b. 11th. – 20th. month – 10%
c. 21st. – 30th. month – 5%
Large Businesses
a. First 15 months - 10%
b. 16th. – 30th. month - 5%
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Special Population Groups
Employers employing workers from among special population groups ( Ultra-Orthodox, Minorities, Invalids and Single Parents will be entitled to the following rates per worker
a. First 10 months – 35%
b. 11th. – 20th. month – 25%
c. 21st. – 30th. month – 15%
Remark: These rates also apply to employers employing workers that belong to these special population groups in The Gaza Envelope region, Sderot and Priority Area A as per paragraphs 1 & 2 above.
Allocation Method
The annual budget for this program is 100 million NIS. These funds will be allocated to participating companies by means of a public tender. Twice a year a tender will be announced and any interested company can apply. The proposals will then be evaluated and the proposals with the most merits will be chosen.
Criteria
Following is a breakdown of the criteria that will be used to choose the successful applicants:
Location – 30%, Average level of salary – 25% ( up to a maximum of 15,000 NIS) , Socioeconomic classification of the town/location- 5%, Length of establishment period -5%
(the shorter the better), Length of operational activity with maximum no. of workers–10%,
Shi'ur Hahapchta- 10%, Amount of investment-5%.
Procedure for presenting proposals
The proposals should be delivered in 6 copies, in a sealed envelope to the Proposals Box of the Israel Investment Center , 5 Bank of Israel Street ( 2nd floor), Jerusalem.
Queries:
All queries about the program, including the dates of the specific tenders should be directed to-
Mr. Asher Shitrit,
Israel Investment Center,
Ministry of Industry, Trade and Labor,
5 Bank of Israel Street,
Jerusalem 91490.
Asher.Shitrit@moital.gov.il
Tel: 972-2-666.2236 Fax: 972-2-666.2905
All queries to be submitted in writing.
February 2010
REMARK: This document is a summary of the original document in Hebrew. For full details of the Employment Grant Program the original Hebrew document should be consulted.
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