1. INVEST IN ISRAEL
Few introductory points on advantage of
investing in Israel and Israeli market
2. Why
Israel
WHY INVEST IN ISRAEL?
Top scores on global indexes of economic competitiveness, a striking concentration of
innovative people, a culture that promotes experimentation and daring, and
governmental eagerness to create supportive conditions for investors, combine to
make Israel a leading site of investment.
An entrepreneurial powerhouse, Israel is a hotbed of pioneering
technologies, profitable business opportunities, and high investment returns. that is why
the world's leading multinational companies have all made the choice for Israel.
Microsoft, Motorola, Google, Apple, Facebook, BerkshireHathaway, Intel, Hp, Siemens, GE, IBM, Philips, AOL, Cisco, EMC, and Toshiba spark the
long list of over 200 companies who have realized that Israel is their ideal choice for
investment.
the reasons that Israel is the preferred spot of multinationals for business are endless.
here, we have sketched out the top ten.
3. One:
The Innovation Capital
Israel was ranked in 1st place in the world for innovative capacity by the IMD Global
Competitiveness Yearbook 2013 and 3rd for innovation out of 148 economies by the
WEF Global Competitiveness Yearbook 2013-2014.
The IMD Global Competitiveness Yearbook 2013 ranks Israel:
-
1st for business expenditure on R&D,
1st for total expenditure on R&D; 1st for scientific research,
1st for public and private sector ventures.
1st for total expenditure on education,
1st for the development and application of technology,
1st for cyber security,
1st for information technology skills,
1st for innovative capacity.
Dominating on so many of the critical indicators of competitiveness, Israel has
clearly earned its growing reputation as the global innovation capital.
4. Two:
The Thriving Entrepreneurial Spirit
Ranked 1st in the world for innovative capacity and 2nd in the world for entrepreneurship (IMD
Global Competitiveness Yearbook, 2013) Israel is highly regarded across the globe for its
thriving entrepreneurial spirit, which enables it to swiftly transform burgeoning start-ups into
profitable and competitive companies.
In fact, apart from Silicon Valley, the highest concentration of high-tech companies in the world
is found in Israel. The number two start up ecosystem -- ahead of NYC, LA, Seattle, Boston, and
London -- Israel's 4,000 start-up companies produce innovations and offer solutions to some of
the most pressing global challenges.
In fact, in 2009, 63 Israeli companies were listed on the tech-orientated NASDAQ, more than
from Europe, Japan, Korea, India, and China combined. Of Israel's 230,000 hi-tech workers, 39%
work in the R&D departments of multinational companies, no surprise given that so many
leading companies have chosen Israel as the site for investment and development.
5. Three:
The Exceptional Workforce:
Israel's creative, skilled, and ambitious workforce is one of the most obvious reasons leading
executives turn to Israel to do business. In fact, Israel boasts one of the most highly educated,
entrepreneurial, and multi-cultural workforces in the world, producing technologies, innovations, and
research adopted around the globe and across sectors.
Israel’s resourceful, motivated and independent workforce is particularly competitive because of its
informal but effective get-down-to-business culture, exceptional ingenuity and entrepreneurial spirit.
The combination of culture, skill, and initiative creates a flexible working system that allows for
maximal adaptability while producing breakthrough technologies and quick time-to-market
solutions.
In an overarching organizational climate of boldness, experimentation and independent thinking are
naturally rewarded, resulting in the types of breakthroughs for which Israel is famous. Israel's minority
communities, including its Arab and ultra-Orthodox populations, are emerging today as one of its
valuable -- and still largely untapped -- resources.
Special government programs are nurturing the high levels of creative and technical talent evident
within these groups and investors are finding in them rewarding solutions to their outsourcing and
staffing needs.
6. Four:
Scientific Excellence, Industrial Profit
The quality of Israel's workforce is naturally reflected in the quality of its scientific institutions,
ranked 1st in the world for their quality (WEF Global Competitiveness Yearbook, 2013-2014).
Although it is a young country, comprised largely of immigrants and descendants of
immigrants, Israel's scientific and technological infrastructure outperforms almost every other
country. In fact, it ranks 3rd for its scientific infrastructure, and 4th for its technological
infrastructure (IMD 2013). Complimented by an unusually high availability of scientists and
engineers Israel's scientific excellence makes it a preferred spot for leading multinationals to
establish R&D centres.
Given the quality of its institutions and infrastructure, Israel's citizens are naturally found at the
fore of innovative research, both within Israel’s own institutions of excellence and at some of
the top universities globally. Ranked 5th in the world for patent filings per capita, Israelis are
behind a string of innovations across sectors and industries, including in medical equipment
patenting, where Israel leads the world in patent registrations. Furthermore, over the past
decade, Israel, with a population of just 7.9 million, has produced eight Nobel laureates,
including six in chemistry. Daniel Shechtman received the honour in 2010 for his discovery of
quasicrystals, Ada Yonath in 2009, for her demonstration of ribosome functions, while
mathematician Robert J. Aumann received the 2005 Nobel Prize in Economics for explaining
conflict and cooperation by means of game theory.
7. Five:
A Global Technological Leader
However, Israeli innovations extend far beyond academia. In fact, Israel is a world leader in
research collaboration between university and industry, ranked 1st in the world for
knowledge transfer by IMD Global Competitiveness Yearbook 2013 and in the top 10 for
collaboration between university and industry
The close ties between academia, industry, and government enable scientific innovation to
be swiftly translated into marketable products and profitable business initiatives, explaining
how Israel reaches $25 billion in technological exports annually (Source: MIT Technological
Review).
Israel invests heavily in education and research, expending 4.38% of its GDP into R&D, the
highest percentage in the world (OECD Science, Technology and Industry Scoreboard 2013).
Furthermore, through government agencies such as the Office of the Chief Scientist of the
Ministry of Economy, a network of incubators for very-early-stage technology start-ups, as
well as an active and alert private venture capital system, Israel provides extensive support
for new ideas and technologies and assists the further development of more traditional
industries.
By maintaining strong scientific and technological infrastructure and leveraging the close
links between academia, industry, and government, Israel produces innovation and
technology that offers no trace of its tiny size
8. Six:
A Flexible, Creative Economy
Flexibility and adaptability to change are widely considered primary factors affecting
business performance. IMD's world competitiveness index in fact places this parameter
among the leading indexes of economic competitiveness.
Creativity and flexibility are the fuel of innovation, and a high degree of responsiveness
to changing business environments is crucial to thriving enterprises in today's dynamic
global market.
Ranked 3rd for flexibility and adaptability by IMD 2013, Israel's ability to swiftly translate
market demands into organizational action, explains why Israel has consistently performed
so strongly in the flexibility index, and is broadly recognized as a capital of innovation.
9. Seven:
A Flourishing Venture Capital Market
Israel's thriving start-up industry is complimented by a flourishing venture capital market, which
totals $1 billion (MIT Tech Review).
The Word Economic Forum Global Competitiveness Yearbook 2013-2014 ranked Israel 8th for
venture capital availability out of 148 economies, and the IMD 2013, 7th, remarkable given its
small size.
By far outperforming any other country in VC volume per capita (Wall Street Journal, 2013), Israel's
venture capital availability is a symbol of the breath of its innovative industries and of the highly
efficient financial sector underpinning them.
The thriving VC market further points to Israel's highly developed local venture capital sector and
significant annual foreign investment, and reflects its sound banking system and well-regulated
securities exchange.
10. Eight:
A Resilient Economy, Security for Investors
Israeli economic resilience help ensure global investors feel secure about their investments in Israel.
IMD 2013 ranks Israel 1st in the world for its central bank policy
IMD 2013 ranks Israel 4th for the resilience of its economy,
WEF 2013-2014 ranks it 1st for annual percentage change of inflation
WEF 2013-2014 ranks it 6th for investor protection out of 148 economies.
The Israeli policy of removing barriers to trade and encouraging the movement of capital has served
the economy extremely well. Israel is committed to openness as a strategic approach, while
recognizing the importance of financial sector regulation, a strategy that has contributed to Israel's
impressive economic growth and its increased economic efficiency in recent years.
Sound macroeconomic strategy, coupled with the relatively conservative approach driving the Israeli
banking sector's strategic decisions, has fuelled Israel's strong economic performance, even as the
global economy has contended with crippling economic slowdown.
In fact, since 2004, Israel’s growth rate has exceeded the average growth rate of all advanced
economies. In 2009, as most of the world experienced a decline in GDP, Israel experienced a 1.1%
growth in its GDP. Its real GDP growth rate in the third quarter of 2013 had already leaped to 4.9%
11. Nine:
The Richness of Diversity
Israel's diversity and multi-culturalism extend naturally from the fact that its population consists
of individuals with origins in over 100 different countries spanning five continents.
In addition to Hebrew and Arabic, Israel’s two official languages, many Israelis are fluent in
English, as well as a host of other languages, including French, German, Italian, Russian,
Chinese, and Spanish.
The richness of the tapestry of Israel's different cultures not only makes Israel a fascinating
place to visit and to do business, but also highlights one of the main attractive features of its
workforce.
A risk-taking and optimistic collective, it is only natural that it is the source of so much
innovation
12. Ten:
The Support
Enshrined into its legislation through laws for the encouragement of capital and industrial
R&D, the State of Israel seeks to offer maximally supportive conditions for companies seeking
to invest in Israel.
Part of a slew of incentives and benefits, the State of Israel encourages international and local
investment by offering conditional grants of up to 24% of tangible fixed assets, reduced tax
rates, tax exemptions and other tax related benefits through the Law for the Encouragement of
Capital Investments.
In addition, Israel offers one of the world's most advanced technological infrastructures along
with the services required to conduct business efficiently and effectively.
Israel boasts a sophisticated communications system, a reliable energy infrastructure, and a
well-developed transportation system with modern international gateways, protection of
trademarks, patents, and other intellectual property, as well as a highly developed and
transparent financial system and a legal system based on common and corporate law.
The State of Israel encourages both local and foreign investment by offering a wide range of
incentives and benefits to investors in industry, tourism and real estate.
Special emphasis is given to hi-tech companies and R&D activities.
14.
The purpose of the Law for the Encouragement of Capital Investments is to
strengthen the industrial capability of the country.
Below is a short summary of the main points of the new law.
A. Qualification requirements
To qualify for benefits under the law the company has to be an industrial company registered in
Israel and has to be internationally competitive (i.e. have export capability). However,
Biotechnology and Nanotechnology companies do not have to meet the "export" requirement to
qualify. An investment in the Priority Area recognized by the law will be termed an Approved
Investment and the company will be designated an Approved Enterprise.
B. Location
For the purposes of the law, the country will be divided into two areas.
1.
A Priority Area (mainly the Galilee in the north, the Negev in the south and Jerusalem)
2.
The Centre of the country (i.e. everything not specified in item 1)
C Investment Incentives according to the Law
Companies that qualify will be entitled to company tax rates as detailed below. In addition,
companies located in the Priority Area will also be entitled to an investment grant, which will be
calculated as a percentage of their approved investment as indicated below.
15. 1.
Taxes
Center of the Country
Priority Area
Company Tax rates
16%
9%
Dividend Tax rate
20%
20%
2.
Investment Grant
Investment Grant*
--* as a percentage of the approved investment
20%
D. Benefit Period
There is no termination period regarding the tax benefit. As long as the company
remains internationally competitive, it is eligible for the tax benefit as prescribed by
the law.
E. Special Tax Benefits Program
16.
Criteria:
Large companies that meet the following criteria will be entitled to the benefits as listed
below.
1)
Total annual income in Israel of at least 1.5 billion NIS
2)
The combined balance sheet of the company is at least 20 billion NIS.
3)
The business plan of the company will include one of the following:
a)
Investment in productive equipment of at least 800 million NIS in the centre of the
country or 400 million NIS in the Priority Area over a 3 year period.
b)
Investment in R&D of at least 150 million NIS in the centre of the country or 100 million NIS
in the Priority Area
c)
Employing at least 500 employees in the centre of the country or 250 employees in the
Priority Area.
17.
Tax Benefits
Company Tax –
Dividend Tax -
Centre of the Country
8%
15%
Priority Area
5%
15%
Disclaimer: Invest in Israel offers this information only as an example of common practice in
industry. Legal counsel should be consulted to establish the exact level of incentives to be
offered.
R&D Incentives and Benefits
The Office of Chief Scientist provides a selection of incentives and benefits for R&D in Israel.
Many are now open to international investors, ask us what those are
18. Support
1.
for R&D Centres for Foreign Companies
Funding of R&D projects from the Office of the Chief Scientist
A foreign company establishes an R&D Centre in Israel as a subsidiary company registered in
Israel with the IP registered as the property of the Israeli entity.
Under these circumstances, it could be entitled to support from the OCS for the different R&D
projects it intends to execute. Registration of the IP as being the property of the Israeli subsidiary
means that all income derived from the fruits of said R&D, including production income – even if
conducted overseas- must flow back to Israel where they will be taxed accordingly.
The rate of funding is as follows:
Standard rate is 20% - 40%.
For a Biotechnology or Nanotechnology company the funding can reach 50%.
Companies located in Israel's Priority Area are entitled to an additional 10% funding.
Should the Foreign Company request to have the IP of the technology developed, in the Israeli
R&D Centre be transferred overseas it will have to receive approval from the Research
Committee of the OCS and to compensate the OCS for the funding granted to it.
19. 2.
Tax Benefits for R&D Centres
A foreign corporation, setting up an R&D centre in Israel, may submit a request to recognize this
centre according to the Law for the Encouragement of Capital Investments.
The basic requirements for approval are:
a) The employment of at least 10 qualified personnel (software engineers, systems analysts,
biotech researchers, etc…)
b) Approval as an "Industrial R&D High-Tech" facility from the Office of the Chief Scientist, Ministry
of Industry, Trade and Labour.
Preferred Enterprise Status according to the Law
Should the R&D Centre, be located in the centre of the country (Tel-Aviv, Haifa etc…) the
company can apply to the Tax Authority to obtain "Preferred Enterprise"* for it according to the
Law for the Encouragement of Capital Investments.
(* No specific status/term is mentioned in the law, we use this term for convenience purposes only).
If granted "Preferred Enterprise" status the R&D centre will have to operate on a "Cost Plus" basis
according to the standard transfer-pricing rate in the industry as this accounting method is usually
applied between the mother corporation and its R&D subsidiaries. A foreign owned company will
then be eligible to corporate tax according to the table below.
20. Approved Enterprise Status
Should the R&D Centre, be located in the priority area of the country (e.g. The Galilee in the
north, the Negev in the south…) then the company should apply to the Investment Centre
- a department of the Ministry of Industry, Trade and Labour- to gain "Approved Enterprise" status.
It will then be entitled to an investment grant according to the Law for the Encouragement of
Capital Investments.
If granted "Approved Enterprise" status the R&D centre will be entitled to an investment grant of
up to 20% of the approved investment and will have to operate on a "Cost Plus" according to the
standard transfer-pricing rate in the industry.
A foreign owned company will then be eligible to corporate tax and above mentioned
investment grant according to the table in the next slide.
21.
The table below summarizes the benefits
TAXES
Company Tax rates
Centre of the Country
Priority Area
Years: 2011 & 2012:
15%
10%
Years: 2013 & 2014:
12.5%
7%
2015 onwards:
12%
6%
Dividend Tax rate:
15%
15%
2. Investment Grant
Investment Grant* --- 20%
* As a percentage of the approved investment
22.
3.
Employment Grants for R&D Centres
The Ministry of Industry, Trade and Labour has launched a new incentive program for supporting
R&D centres established in the Negev (south) and Galilee (north).
This program is part of a long term plan areas to spread the prosperity the Hi-Tech community
has brought to Israel by providing these areas with high-paying quality work places.
Minimum Requirements:
•
Minimum employee’s number required 15
•
The average cost of salary of all new employees has to be at least 2.5 times the average
cost of salary in Israel (about 20,000 NIS or $US5,000).
Employment Grants:
The program provides investor with Employment Grants that will be determined as a percentage
of the employer's salary cost for each new employee, for a period of 4 years.
23. The following is an outline of the grants scheme:
Centres employing 15 -30 employees
•
35% - of each new employee is cost of monthly salary in the first year.
•
30% - in the second year.
•
10% - in the third year.
•
5% - in the fourth year.
Centres employing 30 -45 employees
•
40% - of each new employee’s cost of monthly salary in the first year.
•
35% - in the second year.
•
15% - in the third year.
•
5% - in the fourth year.
Centres employing over 45 employees
•
45% - of each new employee's cost of monthly salary in the first year.
•
40% - in the second year.
•
20% - in the third year.
•
5% - in the fourth year.
If the company recruits 130 employees, it will be entitled to a grant of 40% instead of the rates
listed above and this for 4 years
24.
General Conditions
The company establishing the centre is required to have annual revenues of at least $US 25 million.
The maximum salary entitled to the incentive is 30,000 NIS (or about $US 7,500) monthly.
Salaries above this level will be calculated as 30,000 NIS.
•
The centre has to be established in Priority Area A the Negev and Galilee regions. This area
includes most locations outside the central metropolitan regions. (Towns that qualify include for
example: Beer-Sheva in the south and Carmiel in the north).
•
At least 60% of all new employees should be residents of Priority Area A namely the Galilee
region in the north and the Negev region in the south.
4. Investment Incentives + R&D funding for fully fledged High- Technology Industrial Company
The standard support program available to any high-technology company based in Israel (Local or
Foreign).
Any industrial company that conducts it's manufacturing in Israel as well as R&D activities is entitled
to receive the full range of government support for industry, namely: investment incentives,
company tax benefits and OCS funding.
25.
FINANCIAL R&D CENTERS SUPPORT PROGRAM
Israel has developed a highly dynamic and vibrant Financial Services IT sector.
In order to capitalize on the capabilities of this sector the Ministry of Industry, Trade and Labour has
devised an innovative support program directed at foreign Multi-National financial and banking
corporations.
To qualify the following criteria must be met:
1.
2.
3.
The applicant is a foreign company and does not conduct any R&D activities in Israel
Operates in the financial sector
Has a turnover in excess of $10 billion.
The type and level of Support
The support is an up-front grant and no royalties will be required. The grants will be paid as a
percentage (%) of the total budget approved. The grant payments schedule will be as follows:
Year
1&2
3&4
5
Grant
40%
30%
25%
26. If the R&D Centre is located in a Priority Area (namely the Galilee in the north and the
Negev in the south) the grant schedule will be 10% higher, as follows:
Year
1&2
3&4
5
Grant
50%
40%
35%
The maximum period of support per R&D project submitted will be 5 years.
In order to receive this support the company must also obligate itself to employ the
following number of R&D workers by the end of each given year:
Year
1
2
3
No. of R&D workers
25
50
80
The R&D Centre may execute the project(s) through a subcontractor as long as the
project(s) are executed in Israel and at least 90% of the subcontractor's employees
working on the project(s) are Israeli citizens. The Office of the Chief Scientist (OCS) at the
Ministry of Industry, Trade and Labour administers the program.
27.
EMPLOYMENT GRANTS
1. The Standard Program
In order to complement the revised Law for the Encouragement of Capital Investments, the
government has decided to establish an additional program to increase employment in the outlying
areas of Israel as well as in specific centres with high unemployment. Support will be granted for the
establishment or expansion of industrial plants, telephone call centres, computer service support
centres or logistic centres. In order to be eligible for this program these enterprises will have to
employ a minimum number of workers at a minimum wage as detailed below. The maximum
support per worker will be 135,000 NIS (~ $34,000) over a period of 30 months or 4,500 NIS (~ $1,100)
per month.
The main points of the program are as follows:
The Format
In order to be granted the support from this program companies will have to compete via a tender
like system.
Eligible Areas
a. The "Furthest Periphery", south of 75 latitude (Beer-Sheba) and north of the 258 latitude (Carmiel).
b. Priority Development Area "A” as designated in the Law for the Encouragement of Capital
Investments
c. Designated towns of the Minorities population (Arab, Druze, Circassian) or the Ultra-Orthodox
Jewish population.( Elad, Modi'in Elite , Betar Elite, Immanu'el)
28.
Wages Level
To qualify the enterprise must pay its employees the following minimal wages at least:
a.
b.
In the Minorities and Ultra-Orthodox towns, the minimum wage (about 3,850 NIS).
In all other eligible areas – 5,500 NIS average monthly wages.
Number of Workers
To qualify the enterprise should employ a minimum number of workers according to the
following criteria:
a. Establishment of a new plant – at least 5 workers.
b. Transfer of a plant – the number of workers previously employed or 5 (whichever is
higher).
c. Expansion of a plant – at least 5 new workers
Amount of Support:
The amount of support will be according to the following rates from the gross salary of the
worker, but not more than the maximum salary of 15,000 NIS.
29.
Employment Grant Program for High Salaries (R&D Centers)
The Ministry of Industry, Trade and Labor has launched a new incentive program for supporting
industrial companies established in the Negev (south) and Galilee (north) that pay high salaries
to their workers.
This program is part of long-term plan areas to spread the prosperity the Hi-Tech community has
brought to Israel by providing these areas with high-paying quality work places.
Minimum Requirements:
• Minimum employees’ number required: 15
• The average cost of salary of all new employees has to be at least 2.5 times the average
cost of salary in Israel (about 20,000 NIS or $US 5,000).
Employment Grants:
The program provides investor with Employment Grants that will be determined as a percentage
of the employer's salary cost for each new employee, for a period of 4 years.
30.
The Employment Grant Program for Anchor (Large) Enterprises
The Ministry of Industry, Trade and Labour has launched a new incentive program for encouraging
employment in large enterprises in the Negev (south) and Galilee (north).
This new program is part of a long term plan for the Negev and Galilee to increase employment
possibilities in the north and south of Israel. To qualify industrial companies have to employ at least 100
workers at their plant.
The program offers the investor employment grants that will be determined as percentage of the
employer's cost of salary for each new employee, for a period of 4 years.
Minimum Requirements:
•
Minimum number of employees required: 100.
•
The average cost of salaries of all new employees has to be at least 1.5 times the average salary
in Israel (about 12,000 NIS or $3,000).
Employment Grants:
The following is an outline of the grants scheme:
•
35% - 45%
of each new employee's cost of monthly salary in the first year.
•
30% - 40%
in the second year.
•
10% -20%
in the third year.
•
5%
in the fourth year.
31.
START-UP INCUBATORS
As massive repositories of potential ideas, the Israeli technological incubators have helped make
Israel’s hi-tech entrepreneurship world-renowned. The Office of the Chief Scientist (OCS) of the
Ministry of Industry and Trade takes great pride in implementing the government policy of
encouraging and supporting industrial research and development in Israel at the earliest stages.
Today, with both public and private incubators assisting entrepreneurs in turning their ideas into
exportable commercial products, Israeli business ventures look forward to a promising future.
Highlights
1.
There are 24 incubators scattered throughout Israel, many of which have been recently
privatized.
2.
By the end of June 2004, more than 1000 projects had left the incubators (in addition to
the 200 that remained). Of these "graduates," 45% have continued on their own path.
3.
Most of the ongoing projects have attracted private investments.
4.
The total private investment obtained thus far is over US $773 million.
32. 5.
Approximately 200 projects are being carried out in the technological incubators
today.
6.
Some of the incubators are gradually becoming more specialized, after several
projects in
a shared discipline have matured there.
7.
Breakdown of projects fields of activity
•
•
•
•
•
•
Electronics / Communication 19%
Software 15%
Medical devices23%
Biotechnology 19%
Agriculture and environment 11%
Other 13%
33.
Functions of the Incubator
8.
The principal purpose of the technological incubator is to help entrepreneurs successfully
implement and commercialize their projects. The following services are provided:
•
•
•
•
•
•
Assistance in determining the technological and marketing applicability of the idea and
drawing up an R&D plan.
Assistance in obtaining the financial resources needed to carry out the project;
Assistance in forming and organizing an R&D team.
Professional and administrative counselling, guidance, and supervision.
Secretarial and administrative services, maintenance, procurements,
accounting, and legal advice.
Assistance in raising capital and preparing for marketing.
Acceptance criteria
9.
An R&D project based on an innovative technological idea that aims to develop a product
with export marketing potential.
•
•
•
Entrepreneurs: fledgling entrepreneurs
Team: 3-6 development people
Stay in the incubator: approximately two years
34. 10. During the time in the incubator, the entrepreneur should carry his/her idea to
the stage of explicit product definition and proven technological and marketing
feasibility.
A number of milestones should be met such as a prototype or working model and an
orderly business plan. Additionally, the project should be ready for commercial
investment and/or a strategic partner who is an expert in the field.
11. After the two-year period, entrepreneurs should be able to continue on their
own if necessary, availing themselves of regular channels of state support or outside
investments.
35.
TRAINING SUPPORT PROGRAM
The Manpower Training Department in the Ministry of Industry, Trade and Labour actively assists
industrial companies to train workers in the different disciplines and professions as required by the
company. The support program is offered via three possible programs:
1. "Plant Class" whereby the department will support the opening of a class numbering at least 18 to
train the workers in the specific skills as required by the company. The main condition being that the
company obligates itself to employ at least 50% of the class graduates.
2. "Training and Placement Class". This program is intended for employers and institutions that wish to
train workers in specific disciplines and professions. The company/institution commits itself to employ
at least 50% of the class graduates within 6 months of the completion of the course. The
Department will finance the entire cost of running these classes.
3. "Internal Plant Training". This program assists employers who wish to have an on-the-job training
project in their plant. The Department will assist by paying 1,100 – 1,500 NIS (~$250 - $350) per worker
in this program.