The correct (and safe) employment of a household worker
In Israel of the 2000s, the phenomenon of employing nursing workers, gardening workers, cleaning and housekeeping workers is very common.
In this article we will briefly review the correct and safest way to employ a household worker, or in other words “employ a worker and get away with it”.
First we need to understand why we even need to bother and delve into the subject, which on the face of it seems extremely flawed and does not require serious consideration on our part.
It is important to clarify that when we employ a worker in our home, whether for the purpose of cleaning the house, whether for the purpose of house maintenance, patient care, babysitters or whether for the purpose of cleaning and maintenance in shared houses, we actually become employers for all intents and purposes.
This fact obliges us to pay social security fees and health tax for that employee as well as all the social rights that exist in the law for a full-fledged employee,
Such as: vacation pay, recovery pay, travel, sick pay and provisions for pension and compensation.
It is highly recommended to register working days / working hours for the purpose of calculating the percentage of the job, which is the basis for calculating the various social rights.
Also, it is desirable to have a signed and clear employment agreement between the parties as part of the employer’s duty to inform the employee of his working conditions.
Exposure to lawsuits and huge financial damages
This is the place to alert and warn that, similar to his “regular worker” colleague, if a household worker during work, or alternatively is injured on the way to work or from work to his home, the worker will be entitled to sue the National Insurance Institute in a short-term claim for work accident benefits limited to 90 days, and then Claim a permanent work disability benefit.
If the employer did not report the employment of the employee, then the employer himself becomes a “National Insurance Institution” for this matter, and any amount to which the employee is entitled will ultimately be paid by the employer, when these amounts can reach hundreds of thousands of shekels and more.
Also, all healing and recovery expenses will be charged to the employer, as part of that “settlement”.
So how do you do it correctly?
First step – opening a household worker employment file at the National Insurance Institute
1. First we must open a case as employers at the nearest social security branch to the employer’s place of residence, within two weeks from the day he started employing the employee.
You can also fill out form 614 online on the website of the National Insurance Institute.
Current reports
2. The employer must regularly report on the employee’s work and pay the insurance premiums for him when the obligation to register, report and pay also applies to those who employ an employee who is not a resident of Israel.
This is the place to emphasize that, like any employee, you must get a photocopy of your ID / driver’s license and if you are a foreign resident, you must get a copy of a valid work visa.
3. As employers we must report and pay for the employee once every three months:
In April – report on January to March,
In July – report on April to June
In October – report on July to September,
In January – report on October to December of the past year
How much do you have to pay?
The rates of social security contributions and health insurance contributions are calculated as percentages of the employee’s monthly salary, when it is important to emphasize that in addition to social security payments, the employer is obligated to all the duties and social rights of the employee as mentioned earlier.
| Employees from the age of 18 until retirement age | |||
| employer payment | employee payment | Total | |
| National Insurance contributions | 5.25 | 1.00 | 6.25% |
| Health insurance premiums | 0.00 | 1.00 | 1.00% |
| Total | 5.25 | 2.00 | 7.25% |
| Employees from retirement age until the age of eligibility for an old age pension who do not receive an old age pension | |||
| employer payment | employee payment | Total | |
| National Insurance contributions | 5.25 | 0.00 | 5.25% |
| Health insurance premiums | 0.00 | 1.00 | 1.00% |
| Total | 5.25 | 1.00 | 6.25% |
special occasions
Employees who have not yet turned 18, or who have reached retirement age and are receiving an old-age pension – the employer will only pay insurance premiums at the rate of 2% of their salary.
In order to avoid misunderstandings, you should get confirmation or a statement from the employee about this.
Employees who are residents of Yehuda Samaria or residents of Israel – the employer will pay for them only insurance premiums at the rate of 2% of their salary.
To conclude, the employment of a household worker in many cases is necessary and essential for the functioning of many households / household committees in Israel, knowing the law and its application can provide us with legal protection from wage claims, insurance protection from social security claims and above all “industrial peace”