Israel Extends Work Permits for 4,500 Veteran Foreign Construction Workers, Averting NIS 400 Million Loss

Israel has decided to extend the work permits of 4,500 veteran foreign workers in the construction sector for an additional six months, a move expected to prevent significant damage to the industry and the broader economy.

The decision follows consultations between the Association of Foreign Construction Corporations and senior government officials, including Justice Minister Yariv Levin, Prime Minister’s Office Director General Drorit Steinmetz, and Ministry of Housing Director General Yehuda Morgenstern. Under the decision, the workers—each of whom has been employed in Israel for more than 63 months—will be granted permit extensions starting January 31, 2026.

Eldad Nitzan, chairman of the Association of Foreign Construction Corporations, said the extension will prevent an estimated NIS 400 million in economic damage. According to industry assessments, failure to renew the permits would have led to a roughly 3% increase in housing prices and delays of approximately eight months in the delivery of apartments to buyers.

The construction sector is currently constrained in its ability to bring in new foreign workers, as government approval has not yet been granted to raise the quota beyond 3.3% of the population. Without such approval, no additional workers can be admitted. Moreover, industry officials note that newly recruited foreign workers often lack sufficient experience, making veteran workers essential for training, supervision, and maintaining professional standards on construction sites.

“This decision prevented substantial harm to the Israeli economy,” Nitzan said. “Retaining experienced workers will support growth, improve construction productivity, and represents a significant achievement for contractors and developers.”

Following the Ministry of Housing’s announcement, the Association of Foreign Employers in the Construction Industry, along with multiple corporations, developers, and contractors, announced the cancellation of an emergency conference that had been scheduled for next week in protest of the Population and Immigration Authority and its director, Moshe Nakash.