Tech giants seek govt relief to offset strong shekel

Despite the geopolitical developments between Israel and Iran today, representatives of US tech companies operating in Israel held the latest in a series of Zoom discussions this morning with official from the Ministry of Finance and Israel Tax Authority, “Globes” has learned. The talks are about the ongoing crisis caused by the appreciation of the shekel against the dollar and its dramatic impact on the tech industry.

Participants in today’s talks included representatives of the development centers of the tech giants operating in Israel including Apple, Intel, HPE, General Electric, GE Healthcare, Philips, and IBM, as well as the High-Tech Association at the Manufacturers Association of Israel headed by Alon Ben-Tzur, Bynet CEO. Representing the state were Tax Authority chief Shay Aharonovich, Minister of Finance advisor Natan Nehorai and budget department staff.

Unlike in previous discussions, in which state officials mostly listened without responding, the current meeting saw talks move up a gear with concrete solutions mentioned, and operational measures cites that might ease the burden on multinational companies. This was after the forum, which convened at the initiative of the Israel Advanced Technology Industries (IATI) organization, made it clear to the Ministry of Finance that the companies’ red line was the possibility that tech workers in Israel would be more expensive than workers at those companies in Silicon Valley.

A senior official said, “The tech people came with data and documents that prove that this is the most important point and that this situation must not be reached, because otherwise the companies will stop employing people here.”

The companies were represented mainly by finance managers at the local development centers, along with the initiator of the talks, IATI CEO Karin Mayer Rubinstein, who also behind the discussions that took place last Wednesday.

The main measures on the agenda

Among the main measures that were on the agenda for discussion was the possibility of easing National Insurance payments, with an emphasis on discounts or deferrals in employer payments for industrial workers to directly offset the increase in shekel wage costs. A proposal was also made to examine new benefits for employees and tax incentive mechanisms that would allow companies to retain high-quality personnel without increasing dollar spending. At the same time, despite the initial reluctance of the Ministry of Finance, the idea of allowing tax payments in dollars was not rejected outright this time and Ministry of Finance officials at the meeting showed openness to the possibility that huge companies could manage their tax liabilities directly in foreign currency to prevent foreign exchange losses.

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This meeting follows a heated discussion last week, in which tech industry leaders presented worrying data on how the falling shekel-dollar exchange rate has led to a real increase of about 30% in the wage costs of tech workers in Israel since 2021. At the same talks, which were attended by Accountant General Michal Abadi-Boiangiu, Budget Commissioner Maharan Frozenfar, Chief Economist Shmuel Abramson, and Tax Authority chief Shay Aharonovich on behalf of the government, Finance Ministry representatives raised the question of whether the situation could lead to a decrease in wages in the industry as an alternative to layoffs.

The answer from company representatives, including Meta Israel GM Adi Soffer-Teeni, Microsoft R&D GM Michal Braverman-Blumenstyk, eToro Deputy CEO Hedva Ber, and other managers and investors was a resounding no. Company representatives expressed concern that workers would leave for other places and investments from global companies would be cut.

Published by Globes, Israel business news – en.globes.co.il – on June 8, 2026.

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