Expand your global workforce in Israel
Your guide to the employment landscape, working customs and local labor laws in Israel
Capital
Jerusalem
Currency
Israeli Shekel (ILS)
Languages
Hebrew, Arabic, English
GDP per Capita
$57,064.44
Employer Tax
29.33% to 19.8%
Payroll Frequency
Monthly
Talent overview
Israel is a promising country for investors and foreigners seeking to expand their operations within the region. It has been ranked 35th in the Ease of Doing Business Index by the World Bank and ranked 12th place in the most number of start-up businesses in the world. In turn, the labor market in the country remains to have an increasing trajectory, to meet the demand of their developing business sector.
Major economic hubs:
Tel Aviv, Herzliya, Raanana, Kfar Saba, Ramat HaSharon
Skills in demand:
Accountant, Software Engineer, Marketing, Teacher, Computer programmers
Israel
Top local universities in Israel
Tel Aviv University
Ranking:
Local: 1
World: 224
Hebrew University of Jerusalem
Ranking:
Local: 2
World: 272
Technion – Israel Institute of Technology
Ranking:
Local: 3
World: 390
Weizmann Institute of Science
Ranking:
Local: 4
World: 394
Ben-Gurion University of the Negev
Ranking:
Local: 5
World: 575
Top Local Job Boards:
Nefesh B’Nefesh, JobMaster, JobNet
Number of LinkedIn users:
2,479,000
Top Recruitment Agencies:
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
Some popular jobs in Israel and their corresponding salaries are listed below:
| Job Title | Average Monthly Salary (ILS) | Average Monthly Salary (USD) |
| Financial Manager | 29,477 ILS | 8,142 USD |
| General Manager | 48,515 ILS | 13,401 USD |
| Business Development Manager | 27,245 ILS | 7,526 USD |
| Business Analyst | 17,648 ILS | 4,875 USD |
| Financial Analyst | 19,131 ILS | 5,284 USD |
| Project Manager | 22,803 ILS | 6,299 USD |
Employ in Israel
Employing in Israel
Gaining familiarity with Israel’s employment regulations is a necessary step when Onboarding employees in the country. The following section should guide you through the process compliantly.
Employee Contract
Employment contracts in Israel should be in a language that employers and employees understand. Although, English is most commonly used.
Probation Period
In Israel, the probation period will depend on the employer’s discretion. But generally, it can be up to 12 months.
Public and Provincial Holidays
| Date | Name | Description |
| March 14 | Purim (Tel Aviv) | Local Holiday |
| March 16 | Shushan Purim (Jerusalem) | Local Holiday |
| April 13 | Passover (Day 1) | National Holiday |
| April 19 | Passover (Day 7) | National Holiday |
| May 1 | Yom HaAtzmaut | National Holiday |
| June 2 | Shavuot | National Holiday |
| September 23 | Rosh Hashana | National Holiday |
| September 24 | Rosh Hashana (Day 2) | National Holiday |
| October 2 | Yom Kippur | National Holiday |
| October 7 | Sukkot (Day 1) | National Holiday |
| October 14 | Shemini Atzeret / Simchat Torah | National Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 16 days | Yes |
| Sick Leave | 18 days | Yes |
| Maternity Leave | 26 weeks | Yes |
Leave Compliance
Public and Provincial Holidays
Payroll in Israel
Payroll cycle
In Israel, the payroll cycle is monthly.
Minimum wage
The National minimum wage in Israel is ILS 5,880.02 per month.
Read more
Overtime pay
The standard working hours in Israel are 48 hours for a five-day workweek.
Read more
How taxes work
Employer Payroll Tax
| For the share of income which is up to 60% of the average wage – ILS 7,522 – (reduced rate) | For the share of income which exceeds 60% of the average wage, up to the maximum level of income for which national and health insurance contributions must be paid – ILS 49,030 – (full rate) | |
| Scheme | Employers’ Contribution | Employers’ Contribution |
| National Insurance | 3.55% | 7.60% |
| Health insurance | – | – |
Employee Payroll Tax
| For the share of income which is up to 60% of the average wage – ILS 7,522 – (reduced rate) | For the share of income which exceeds 60% of the average wage, up to the maximum level of income for which national and health insurance contributions must be paid – ILS 49,030 – (full rate) | |
| Scheme | Contribution | Contribution |
| National Insurance | 0.40% | 7% |
| Health insurance | 3.10% | 5% |
Employee Income Tax
| Annual Taxable Income (ILS, Israeli New Shekels) | Tax Rate (%) |
| 0 to 84,120 | 10% |
| 84,121 to 120,720 | 14% |
| 120,721 to 193,800 | 20% |
| 193,801 to 269,280 | 31% |
| 269,281 to 560,280 | 35% |
| Above 560,280 | 47% |
The tax rates applicable for those under 60 years of age who earn income from other sources are as follows:
| Annual Taxable Income (ILS, Israeli New Shekels) | Tax Rate (%) |
| 0 to 269,280 | 31% |
| 269,280 to 560,280 | 35% |
| Above 560,280 | 47% |
VAT
The Standard VAT rate in Israel is 18%
Bonus
13th Month Pay
A 13th month pay is not mandatory in Israel. However, most employers in Israel provide 13th month pay for their employees.
Employee Benefits
Benefits for Israeli employees may include the following:
- Health Insurance
- Pension
- Transportation Allowance
- Convalescence Pay
Employee offboarding
Termination is based on valid reasons and in compliance with law. It includes a hearing process explaining the reasons and the decision to be communicated in writing. Recommended to provide a termination letter in person, preferably in 48 hours after the hearing process.
Notice period for employees in Israel is given as per the table below:
| Year of Employment | Notice period |
| 1st year | 1 day for every month worked |
| 2nd year | 14 days |
| 3rd year | 21 days |
| After 3 years | 1 month |
Employees entitled to a severance pay after completing 1 year of service. The pay to be calculated as one month’s pay times(multiplied by) the years of employment.
Visa and
immigration
Foreign employees in Israel need to apply for a work visa from the Israeli Ministry of Interior. Employers are required to secure a work permit on behalf of their employees to legally work in the country.
Your employment toolkit for Israel
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Overtime Pay
Minimum Wage
- The minimum wage for employees working 5 days a week is ILS 271.38 (Israeli shekels) per week.
- The minimum wage for employees working 6 days a week is ILS 235.38 per week.
- The minimum hourly wage for a total of 186 hours of work is ILS 31.61.
- The minimum hourly wage for a total of 182 hours of work is ILS 32.30.
- The minimum monthly salary is ILS 5,880.02
- Part-time employees are eligible for partial minimum wage, calculated based on hours worked.
Overtime Pay
If an employee works for extended hours, they must be given overtime pay at the following rate:
| Overtime hour | Rate |
| First 2 hours | 125% |
| After 2 hours (and every hour after that) | 150% |
Visa and Immigration