Basic Facts About Reserve Duty In Israel That Overseas Employers Need To Be Aware Of


The high level of competition in the recruitment industry has made it mandatory for business organizations to look for suitable talent beyond the local geographical boundaries. In fact, there has been a significant rise in the number of organizations opting to hire professionals from international talent pools. While such hiring trends have proven extremely beneficial for the business organizations in more than one ways, they have also given rise to some complications. This is because hiring overseas employees makes it mandatory for the business organizations to follow the various employment laws as applicable in the country of origin of the candidates.

Organizations looking to hire professionals from countries like Israel face greater complications in this respect. This is because the country has some very unusual mandates for the employers. One such mandate that the overseas employers need to fulfil is that of handling the benefits of the employees who miss work because they are called up for reserve duty. In order to ensure that they are being fully compliant with such mandates, it is important for the overseas employers to gain an in-depth understanding of the current rules and regulations associated with the mandate. However, since this can prove to be an extremely time-consuming and even complicated task, the next best alternate for such employers is to hire professional payroll services Israel.

An Overview Of Reserve Duty In Israel

As per the provisions of the Security Service Law in Israel, the citizens of the country can be called up for reserve duty, even if they are working for an overseas employer. During this period, the employees obviously have to miss work, but the employers are still required to pay them full wages for the duration. Many employers find this practice unfair because they are unaware of the reserve service benefit offered by the National Insurance Institute in Israel to help the employers cover this expense. The employers also need to be aware of the fact that the maximum number of days of reserve duty for every Israeli employee is 36 per year. However, the employees might not necessarily be called up for such service every year or even several years.
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Key Facts About Invoicing For Reserve Duty Employees

In view of the above facts, it is not uncommon for most overseas employers to feel confused about handling the invoicing and benefit payments for their Israeli employees for reserve duty days. The best way to overcome this problem is by hiring the services of an Employer of Records Israel. These professionals can help clarify the following points for the employers with respect to claiming their cover from NII

·         The employers can submit their claim for the benefit of refund from the NII after they have cleared all the dues of the employees for reserved duty.

·         The benefit thus received by the employer from NII is known as the “Refund for Reserve Duty”, and is noted on the invoice by the same name.

·         The refund for reserve duty service is calculated by the NII using a specific formula. The employees are entitled to any difference in the amount calculated and their daily salary.

Location: Israel

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