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The law that compares the conditions of the self-employed and employees
The Ministerial Committee for Legislation has approved the outline of the safety net for the self-employed, which will allow them to choose routes that will compare their conditions to those of employees.
The bill began as an initiative in the days of the "Shulmanim" demonstrations during the Corona
Tags
pension
Knight Kara
Ministerial Committee for Legislation
Self-employed
Independent
Sonia Gorodisky
Sunday, 07 November 2021, 15:51 Updated: 16:04
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The outline of the self-employed safety net led by Deputy Minister Avir Kara was approved as expected by the Ministerial Committee on Legislative Affairs, after gaining the support and encouragement of the Prime Minister, Foreign Minister, Deputy Prime Minister and Minister of Finance.
The outline offers a unique model of voluntary choice for the self-employed between routes that will compare their conditions to the conditions of the employees and will also deploy a safety net for them in case of need such as illness or business closure.
The outline was formulated by Kara together with an expert forum, led by the Chamber of Tax Advisers during the "Shulmanim" protest.
So, in light of the Corona crisis and the recurring closures, the importance of a safety net that will protect the self-employed and business owners has become clear.
Now the plan is moving from an idea in social protest, to an official policy of the Israeli government.
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Deputy Minister Avir Kara.
After the criticism he received from the opposition, he will be able to register the achievement in his name (Photo: Reuven Castro)
The principles of the program will include two alternatives for the self-employed to choose:
in the "self-employed as an employee" track, the self-employed will be able to take out a pay slip, pay Social Security and receive unemployment benefits if necessary.
In the "safety net" track, the self-employed will set aside a reduced amount for the National Insurance, one percentage point will go to the self-employed's pension and savings fund, and in various cases such as moving, illness, vacation, unemployment and more, the business owner can withdraw from the fund he saved. Money that is not attracted by the self-employed will accrue for him a pension.
Deputy Minister Kara: "The average self-employed person does business acrobatics and takes risks in order to succeed and create value and livelihoods for his employees. Today, for the first time in history, we deploy a safety net under him that will allow him to take risks and protect him when needed. "Special thanks to the Prime Minister, the Deputy Prime Minister and the Minister of Finance for their support and encouragement. It would not have happened without them."
Tax Advisor Yaron Gindi, President of the Chamber of Tax Advisers: "The revolutionary bill was formulated by us in the Chamber of Tax Advisors with thorough and professional thinking and with the intention of creating a safety net for the self-employed in the simplest way possible.
Self-employed can choose just as employees and as a result will receive from the National insurance them rights equal to those of employees. easy to apply and easy to understand.
the legislation also allows the solution to salaried employees who have already mastered today issuing company's paycheck, but they do not get the same rights of employees "normal." in addition, "Issuing the coupon will also allow the self-employed to increase the tax-recognized pension deposits for themselves, which will ensure them more significant pension savings in the future."
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