Sponsoring a Foreign Employee's B/1 Work Permit in Israel: What Every Employer Must Know

When an Israeli company wants to hire someone from abroad, the work permit paperwork starts with the employer, not the worker. The employer applies, the employer pays the quarterly levy, and if something goes wrong with the permit, the employer answers for it. This is not a process you can hand off to the candidate and wait for results.

This guide covers the B/1 work permit from the employer's side: registration with PIBA, the two permit tracks, the application steps, the levy, the ongoing compliance obligations, and the penalties. For what the process looks like from the worker's side, see our guide on B/1 work permits for foreign workers.

1. The Employer's Legal Role Under Israeli Law

Under Section 2(a) of the Foreign Workers Law 5751-1991 (Chok Ovdim Zarim), it is unlawful to employ a foreign national without a valid work permit authorizing that specific employment relationship. The permit is issued to the employer, not the worker. This matters because the legal obligation — and the liability for violation — sits with the company, not the individual being hired.

The work permit names both the employer and the worker and specifies the permitted role, industry classification, and permitted period of employment. If the worker changes role or department in a way that is material enough to be a different job, the permit may need to be updated. If the worker leaves and the employer wants to replace them with a different foreign national, a new permit is required for the replacement worker.

PIBA administers the permit system under delegation from the Ministry of Interior (*Misrad HaPnim*). The authority also registers employers, manages the quota system for certain worker categories, and conducts the enforcement inspections that trigger sanctions for non-compliance.

2. Which Employers Can Sponsor a B/1 Work Permit

To apply for a work permit, the employer must be registered with the Israeli Companies Registrar (for a company) or the Partnerships Registrar, or registered as a self-employed individual with the Israeli Tax Authority. In most cases this means:

• An Israeli-registered limited company (chevra ba'am or chevra be'eravon mugbal)
• An Israeli branch or registered office of a foreign company
• A registered partnership or cooperative
• An individual employer (for domestic or caregiver roles)

A foreign company that has no Israeli registration cannot directly sponsor a B/1 permit. It must first register a legal presence in Israel — typically a subsidiary or a registered branch — and then apply as that Israeli entity. This requirement trips up many multinationals who assume they can sponsor workers into Israel from a head office abroad the way they might into certain other countries.

An employer who has previously been sanctioned for unauthorized employment, or who appears on PIBA's list of repeat violators, may be barred from applying for new permits for up to five years depending on the severity of the prior violation. Running a basic PIBA status check before starting a recruitment process for foreign talent is worth doing for any company that has had prior immigration issues.

3. B/1 Expert Track vs. B/1 Non-Expert Track

The B/1 visa has two primary tracks for employed workers, and they differ substantially in salary requirements, processing pathways, and current availability.

The B/1 Expert Track (*oveid mektzoa*) is for foreign nationals who bring specialized knowledge, skills, or experience that is not readily available in the Israeli labor market. The legal test is not about academic credentials specifically — it is about whether the worker's particular expertise is demonstrably scarce in Israel. Technology, life sciences, finance, and professional services hires typically use this track. The minimum gross salary as of January 1, 2026, is NIS 27,132 per month. The permit is valid for up to two years and can be renewed, typically for periods of one to two years, for a total employment period that can reach five years.

The B/1 Non-Expert Track covers workers in categories where a sectoral shortage is recognized — historically construction, agriculture, and certain caregiving roles. This track uses a quota system administered jointly by PIBA and the relevant industry ministries (Ministry of Economy and Industry for construction and agriculture, Ministry of Health for medical caregivers). Unlike the Expert track, there is no universal minimum salary floor; sectoral wage floors set by collective agreements or regulations apply instead.

4. The Step-by-Step Application Process

The B/1 work permit application is filed by the employer through PIBA's online employer portal. The sequence that follows is for the Expert track, which is the most common path for professional and technology hires.

1. Employer registration with PIBA. The company must be registered in PIBA's employer database (*misad ha-ma'asik*). This is a one-time step and typically takes three to seven business days.
2. File the work permit application (*baka'at heter ha'asaka*). The application includes the employment contract, the worker's CV and qualifications, evidence that Israeli recruitment was attempted without success (a job posting and documentation of Israeli applicants considered), and the company's registration documents.
3. PIBA review and issuance of the approval. PIBA issues an employer work permit approval (*isher le-ha'asakat oveid zar*). This is the authority the employer holds — not the visa itself. Standard processing takes four to eight weeks. An accelerated track (*mishtale mekutzar*) can reduce this to two to three weeks for an additional fee of approximately NIS 750.
4. Worker applies for the B/1 visa at an Israeli consulate. Once the employer's permit approval is issued, PIBA transmits it to the Israeli consulate in the worker's country of residence. The worker then applies for the B/1 entry visa. This typically takes two to four weeks at the consulate level.
5. Worker enters Israel on the B/1 visa. On entry, PIBA stamps the passport with the B/1 status and its permitted duration.
6. Registration within 90 days. Once the worker is in Israel, the employer and worker register the actual employment commencement with PIBA. This closes the application loop and activates the permit formally.

5. The Employer Levy: What It Is and How to Calculate It

Every employer who holds a work permit for a foreign worker must pay a quarterly levy to the state under Section 4 of the Foreign Workers Law 5751-1991. The levy is formally a contribution to the National Foreign Workers Inclusion Fund (*Keren Ha-Klita shel Ovdim Zarim*), but in practical terms it functions as a flat cost on top of the worker's salary.

The levy rate for most worker categories, including Expert track B/1 holders, is 20% of the gross monthly salary, paid quarterly to PIBA's designated account at the Ministry of Finance. On a NIS 27,132 monthly salary, the quarterly levy is NIS 16,279 (NIS 5,426 per month). On a NIS 40,000 monthly salary, it is NIS 24,000 per quarter.

The levy is not deductible from the worker's salary. It is an employer cost, similar in character to employer-side social security contributions, except that it flows to the state rather than generating social insurance benefits for the worker. Bituach Leumi contributions for B/1 Expert workers are handled separately under the NII rules for foreign workers and generally cover work accident and maternity branches at lower rates than for Israeli employees.

Some categories of foreign workers carry modified levy rates. Nursing caregivers employed by individuals (not institutions) carry a lower levy because the caregiver model involves housing and board provided by the employer. Construction sector workers under the Non-Expert track are subject to a different rate set by the Ministry of Economy.

6. Ongoing Employer Obligations During Employment

Holding the work permit is the beginning of the employer's obligations, not the end of them. Several ongoing duties attach from the day the worker enters Israel.

Health insurance is the first ongoing cost. Under Section 6A of the Foreign Workers Law 5751-1991, every employer of a B/1 permit holder must arrange and pay for private health insurance meeting the minimum coverage standards set by the Minister of Economy. This replaces Kupat Holim, which B/1 workers do not receive through the NII. The minimum coverage must include hospitalization, ambulatory specialist care, surgical procedures, and emergency services. Premiums typically run NIS 300 to NIS 700 per month depending on the plan and the worker's age. The employer pays directly; passing the cost to the worker is prohibited.

For caregivers in private households and construction workers under sectoral agreements, the employer must also provide suitable accommodation or a housing allowance. For caregivers this usually means housing in the care recipient's home. The construction obligation is set by sector-specific regulations. Expert track workers are not covered by either of these housing rules.

If the worker's role changes substantially, their salary changes materially, or employment ends for any reason, the employer must notify PIBA within 30 days. Missing this notification is a double problem: the employer keeps paying levy on a permit that is no longer valid, and the worker stays on a visa tied to a job that no longer exists. PIBA inspectors regularly catch both issues in the same visit.

The employer must retain copies of the work permit, the worker's visa, the employment contract, and salary records for at least seven years. PIBA can request these documents during unannounced inspections. The seven-year period matches general labor record retention requirements under the Hours of Work and Rest Law 5711-1951.

7. Sanctions for Employing Without a Valid Permit

The sanctions framework comes from Section 2 of the Foreign Workers Law 5751-1991, with additional provisions under the Entry into Israel Law 5712-1952. They escalate depending on how many workers are involved and whether the employer has been caught before.

An employer found to be employing a foreign national without a valid work permit faces an immediate administrative fine of NIS 20,040 per unauthorized worker per violation. PIBA issues the notice on the spot during an inspection; no court proceeding is needed first.

Criminal liability is a separate track. Section 2(a) of the Foreign Workers Law makes unauthorized employment a criminal offense with a maximum prison term of two years. Criminal referrals to the State Attorney go to cases of systematic, repeated, or large-scale violations. A company caught with one unauthorized worker for the first time rarely faces criminal prosecution. A company with ten workers across three sites and a prior written warning is a different matter.

Repeat violators are added to PIBA's published list of employers sanctioned for unauthorized foreign worker employment. Being on that list means a bar on applying for new work permits for up to five years. For a company that depends on being able to hire foreign experts, this is the consequence that actually hurts.

8. When the Worker Leaves or You Want to Replace Them

The work permit is employer-specific and worker-specific. It does not follow either party to a new relationship. This has practical consequences for both voluntary departures and terminations.

Worker resigns. When a B/1 Expert worker resigns, the employer's obligation is to notify PIBA within 30 days and to stop paying the levy from the date employment ended. The worker's B/1 visa status does not automatically end on resignation — the worker has a grace period, typically 30 to 90 days, to either find a new employer who will sponsor a new permit or depart Israel. During this period the worker is not in unauthorized status, but they cannot legally work. An employer who discovers that a foreign worker has taken a second job with another company while still on their permit is in a difficult position: the second employer is technically employing the worker without a valid permit, which is the second employer's violation, but the original employer may find PIBA inquiries coming their way because the worker's status is still technically linked to their permit.

Employer terminates the worker. On termination, the same 30-day notification obligation applies. If the employer wants to bring in a replacement foreign worker for the same role, a new permit application must be filed for the new hire. There is no mechanism to transfer an existing permit from the departing worker to the new hire — each permit names a specific individual. This means the employer faces a potential gap period while the new permit is processed. Some companies address this by running permit applications for prospective replacement hires in parallel with the exit of an existing permit holder, being careful about the timing so the replacement actually arrives after the prior worker has left.

Permit expiry and renewal. A B/1 Expert permit must be renewed before it expires. PIBA does not automatically notify the employer when expiry is approaching. The renewal application should be filed at least two months before the permit's end date to avoid a gap. If the permit lapses and the worker continues to work, the employer is in violation as of the day after the permit expired, regardless of whether a renewal application is pending.

Worker wants to change employer. A B/1 Expert worker who wants to move to a different Israeli employer needs a new permit from the new employer. They must also obtain a new B/1 visa or, if their existing visa still covers the period, a PIBA authorization for the new employment relationship. The process for a mid-period employer change is faster than an initial application because the worker is already in Israel, but it still requires a full new permit application from the receiving employer.