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The rights of employees are defined by labor laws and the Social Security (Bituach Leumi) law defines who is defined as a salaried employee for Social Security purposes. The labor courts in Israel have adopted the Social Security law when trying to determine whether someone was a salaried employee or self-employed. The implications are wide-ranging because there are many issues such as mandatory pension, work and rest hours, sick pay, vacation just to name a few.
In this post, I aim to give an overview of the Social Security law regarding workers who are employed in household work, their rights, and their employer’s responsibilities in this regard.
General
A household worker is insured according to the Social Security law as a salaried employee. The payment of Social Security for a household worker is the employer’s responsibility. This law applies to anyone, even if they are not a resident of Israel.
Who is considered a household employee?
A household worker is one who is employed in various household chores, under the condition that the work is not being done for the business or profession of the employer, rather, for the employer’s personal or family’s needs. A few examples of household workers: maintenance, gardener, cleaning person (including cleaners of a shared property – stairway cleaners in an apartment building), caretakers of elderly or disabled people.
Note: Family members are not usually considered household workers, unless there are actual employer-employee relations between them. If someone employs a family member in household work the employer needs to sign a declaration as such at their local Social Security office.
Who is considered an employer of a household worker?
An “employer of a household worker” is anyone who employs someone in household work for more than 6 days, even if those days are not consecutive. A one-time home cleaning job would not fall under this category, However, employing someone on a weekly basis or several times a week would.
The responsibilities of an employer of a household worker
- The employer is required to register the employee at their local Social Security office within two weeks of commencement of employment.
- The employer and employee should have a written agreement of terms of employment, signed by both sides.
- There is no requirement to issue a payslip, as the employer is not a company.
- All labor laws apply: Work & Rest hours, Protection of salary, Vacation, Sick days, Mandatory pension, Severance pay, Overtime, Advance notice upon resignation/termination, etc.
Why is this an issue and why is it important?
If god forbid a household employee should be injured in a work related accident and need medical treatment or hospitalization, the employee is insured by Social Security who covers the cost of the related expenses, loss of work ability insurance and/or disability stipends. Failure by an employer to register the employee and pay Social Security for said employee may result in a law suit by Social Security against the employer. This holds true for a va’ad bayit (apt. bldg committee), as well.
In addition, all residents are required by law (mandatory health insurance law, 1995) to be registered with one of the health funds (
Household workers – payment for health insurance is 1% of their total pay.
Percentages of payment for employer and employee
The payment is as follows:
Employer = 5.25% Social Security
Employee = 1% Social Security and 1% health tax = total 2%
This amount is deducted from the payment to the employee and
Reporting and payment of Social Security for household workers
The reporting is done via form 614 four times a year;
1. On the 20th of April, for the period January – March
2. On the 20th of July, for the period April – June
3. On the 20th of October, for the period July – September
2. On the 20th of January, for the period October – December of the previous year.
The form can be filled out and paid at any post-office or bank or online on the Social Security’s website.
The amounts are in shekels with no agurot (rounded-off to the nearest shekel).
Late payments incur fines and the amounts owed are linked to the consumer index.
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This article is NOT legal advice, nor is it meant to be. It is also not a translation of the law, but rather an explanation. In any case of contradiction between this article and the law, the wording of the law prevails. In cases where legal assistance may be needed please consult with a certified attorney.
Private paid consultation is available: moshe.israpay@gmail.com
