GoGlobal: This is the clause in the GG EC: Company shall contribute 7.5% of the Monthly Salary, and the Employee shall contribute 2.5% of the Monthly Salary, but in no event shall either party contribute more than the maximum tax-exempt amount prescribed by the Income Tax Ordinance, as amended from time to time. The Employee instructs the Company to transfer to such Education Fund the amount of the Employee’s contribution from each Monthly Salary.
Human Impact:
In Israel, there is an optional Education Fund, which is an additional allowance. It is not statutory, but it is common practice to offer it. The client needs to confirm for each onboarding what they would like to offer the EE. Sometimes this is already negotiated with the EE and included in the datasheet's comments section. If not, the client will need to confirm which option to apply for the EE, as this will be reflected in the contract.
The 3 options are as follows:
Option 1 - No Education Fund
Option 2 - Up to the tax limit - Employer contributes 7.5%, Employee contributes 2.5% up to a max tax limit (NIS 1,178.40)
Option 3 – No limit Employer contributes 7.5%, Employee contributes 2.5%.
Source: SF00047112
Submitter: Magda