Sources inform ''Globes'' that the Ministry of Finance plans to impose mandatory pensions on the self-employed, in the same way that pensions are now mandatory for salaried employees.
The Ministry of Finance said in response, "The issue is under review."
The ministry plans to require every self-employed person to set aside part of their income to ensure a minimum income during retirement.
The plan has drawn mixed reviews from the market. Former Lahav Israel Association for the Self-Employed chairman Zeev Weiner opposes the plan. He told "Globes", "Instead of mandating pensions for the self-employed, they should be given an alternative to increasing their pension set-aside in the form of tax breaks, and it will happen. If this is done through compulsion, it is tantamount to a new tax on the self-employed. The self-employed are not salaried employees."
Israel Insurance Brokers president Udi Katz supports the proposal. He said, "This is a great idea, and it ought to include severance compensation for the self-employed."
Published by Globes [online], Israel business news - www.globes-online.com - on September 10, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009