The first payments to be made under the negative income tax will come on October 15. Those eligible will be residents of 14 communities chosen as part of a pilot project, and they will receive partial payments based on their 2007 income. The remaining payments for 2007 will come only on January 15, 2009 and April 15, 2009.
The maximum payment is NIS 1,600 per employed person, or NIS 3,200 for a family of two wage-earners. The grants for 2008 and on will be made in four equal payments, every three months. The first disbursements for 2008 will be made on July 15, 2009. The goal is to reduce social gaps while encouraging people to go out to work. The payments as a result of the negative income tax will be a supplement to these low-income workers.
The grant will be paid directly into the workers' bank accounts. For now, only a limited number of towns will participate in the pilot, which will gradually spread to the rest of the country by 2010.
Workers will have to apply for the grants at the end of the year in order to receive the money.
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