Following lobbying efforts by foreign labor corporations in the construction sector, headed by Eldad Nitzan, the Knesset Labor and Welfare Committee approved new regulations increasing by 50% the amount that can be deducted from foreign workers' wages to cover housing costs, Maariv has learned.
The measure is expected to effectively reduce the cost of employing foreign workers. Until now, foreign workers' contribution toward rent was capped at just NIS 300 per month. Under the new regulations, most of the cost of their accommodation - including electricity, water, and municipal property tax (arnona) - will be deducted directly from their wages, providing contractors with significant relief from these employment-related expenses.
The average monthly salary of a foreign worker in Israel's construction sector is NIS 7,500. The initiative was spearheaded by Labor and Welfare Committee Chairperson MK Michal Waldiger, with the support of MK Yoav Ben-Tzur (Shas), the former of Labor Minister, and Dubi Amitai, Chairman of the Coordination Bureau of Economic Organizations.
The cost of housing foreign workers, along with related expenses, has risen sharply in recent years, with most of the financial burden falling on labor corporations and construction companies. The construction industry currently employs approximately 75,000 foreign workers through 220 licensed labor corporations, which are also working to recruit an additional 40,000 foreign workers to meet the sector's growing labor needs.
The reduction in foreign labor employment costs is expected to be reflected in lower construction costs for residential and commercial projects, potentially contributing to lower property prices.