Training Fund in Israel: What You Need to Know

A training fund in Israel is a long-term savings and investment vehicle that employers often open for employees. It is commonly used for professional development, training, and eventually as a tax-advantaged savings plan that can be accessed under certain conditions.

For new immigrants and residents in Israel, understanding how a training fund works can help you manage employment benefits, plan savings, and avoid missing out on money your employer may be required to deposit.

What is a training fund?

A training fund, often called Keren Hishtalmut, is a benefit that may be set up by an employer for an employee. Monthly contributions are usually made by:

  • the employer
  • the employee

The money is invested over time, and under the right conditions it can be withdrawn with favorable tax treatment.

Why it matters

This fund is important because it can function as:

  • a work benefit
  • a savings tool
  • a tax-efficient investment
  • a source of money for professional training or future financial needs

For many employees in Israel, it is one of the most valuable benefits in a compensation package.

Common features

While the exact terms depend on your job contract and the relevant labor rules, training funds typically include:

  • regular monthly deposits
  • investment management
  • a vesting/savings period before withdrawal
  • possible tax advantages on eligible withdrawals

Who may receive it?

Training funds are usually tied to employment conditions. They are most common for:

  • salaried employees
  • workers whose employment agreement includes this benefit
  • employees whose sector or collective agreement provides it

Not every worker automatically receives one, so it is important to check:

  • your employment contract
  • your pay slip
  • any collective agreement that applies to your workplace

What to check as an employee

If you are working in Israel, make sure to verify:

  1. Whether a training fund has been opened for you
  2. How much is being deposited each month
  3. Who manages the fund
  4. When you can withdraw the money
  5. What fees or investment options apply

Practical tips for new immigrants

If you have just started working in Israel:

  • Ask your employer whether you are entitled to a training fund.
  • Check your payslip to confirm deposits are being made.
  • Keep all fund documents and account details.
  • Do not assume the benefit is automatic if it is not written in your contract.
  • If you change jobs, ask what happens to the existing fund.

Bottom line

A training fund in Israel is more than a perk — it is often a key part of an employee’s financial benefits. If you are a repatriate or new immigrant, it is worth checking early whether you are entitled to one and how it is being managed.

If you want, I can also turn this into:

  • a shorter portal-style article
  • a FAQ version
  • or a Russian-language version for repatriants