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State of Palestine Employment Guide

Your quick guide on talent and labor compliance norms in State of Palestine


Jerusalem (limited recognition), Ramallah


Israeli Shekel, Jordanian dinar (JOD), and United States Dollars (USD)



Payroll Frequency


GDP per Capita


Employer Tax

No Contribution

Talent Overview

Located in the Middle East, Palestine, officially the State of Palestine, has a population of 5,375,155. It has a presidential form of government. It is a member of the Organization of Islamic Cooperation, the Arab League, and the G77.

Major economic hubs:

Jerusalem, Gaza, and West Bank

Skills in demand:

IT sector, Tourism, Handicrafts, Agriculture

Map 25

Local Universities

The top local universities in State of Palestine are as follows:

Uni1 49

Birzeit University


Local: 1

World : 1231


Uni2 43

An-Najah National University


Local: 2

World : 2018


Uni3 37

Al-Quds University


Local: 3

World : 2323


Uni4 8

Islamic University of Gaza


Local: 4

World : 2542


Uni5 35

Bethlehem University


Local: 5

World : 4444


Salary Data

The below table mention some of the common jobs in the State of Palestine with average monthly salary:

Job Title Average Monthly Salary (ILS ) Average Monthly Salary (USD)
Financial Manager 11,487.38 3340
Information Technology Manager 9,251.81 2690
Business Development Manager 8,873.48 2580
Financial Analyst 7,360.18 2140
Business Analyst 7,119.42 2,070
Project Manager 6,225.20 1,810
Talentsource 29

Talent Sourcing Tips

Top Local Job Boards:


Number of LinkedIn users:


Top Recruitment Agencies:,

Employing in State of Palestine

To hire employees in the State of Palestine, employers need to follow the country’s employment law.

Employee Contract

The employment  contract should be written in Arabic and include the terms and conditions, wage, type and duration of work, benefits, termination conditions, and all other terms and conditions agreed between the parties.

Probation Period

The probation period can be a maximum of three months. It can be up to three months and cannot be extended further with the same employer.

Public and Provincial Holidays 2023

Date Name Type
1 Jan New Year’s Day Public Holidays
18 Feb The Prophet’s Ascension Public Holidays
20 Apr Eid al-Fitr Holiday Public Holidays
21 Apr Eid al-Fitr Public Holidays
22 Apr Eid al-Fitr Holiday Public Holidays
1 May Labour Day Public Holidays
28 Jun Eid al-Adha Public Holidays
29 Jun Eid al-Adha Holiday Public Holidays
30 Jun Eid al-Adha Holiday Public Holidays
19 Jul Islamic New Year Public Holidays
27 Sep Prophet Muhammad’s Birthday Public Holidays
15 Nov Independence Day Public Holidays
25 Dec Christmas Day Public Holidays

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 14 days per year for first 5 years of employment; 21 days thereafter Yes
Sick Leave First 14 days with full salary and next 14 days with half salary per year Yes
Maternity leave 70 days Yes


Payroll 1

Payroll Cycle

The payroll cycle in Palestine is Monthly.

Payroll 2

Minimum Wage

The minimum wage in the State of Palestine is 1,880 ILS per month.

Payroll 3

Overtime Pay

In the State of Palestine, actual working hours are forty-five hours per week. In case of overtime, the extra working hours should not exceed twelve hours a week and workers shall be paid 1.5 times for each hour worked.


13th Month Pay

There is no specific law to mandate the 13th-month pay, however it can be provided based on collective agreement.

Employee Benefits

  • Annual leave
  • Sick leave
  • Maternity leave


Employer Payroll Tax

There is no social security contribution in the state of Palestine.

Employee Payroll Tax

There is no employee payroll tax in the State of Palestine.

Employee Income Tax

Income range (in Israeli shekels (ILS)) Rate
1 to 75,000 5%
75,001 to150,000 10%
150,001 and above 15%


The VAT rate in Palestine is 16%.

Offboarding & Termination

Both employer and employee can terminate the contract by giving notice. Employers can terminate the contract without giving any notice if workers commits following infractions:

  • Disclosing trade secret
  • Impersonating other person
  • Work negligence which results in big loss
  • Absent from work for more  than seven days
  • In state of Intoxication during working hours
  • Assaulting employers or his representatives, etc.

The notice period in the State of Palestine is as follows:

Length of continuous employment Notice period
For workers paid on Monthly basis 1 Month
For workers paid on daily or weekly basis 1 week

The worker who completes one year of service is entitled to one month end of service bonus. It is calculated based on the last salary an employee earned.

Visa and Immigration

Individuals of all nationalities need to have a work visa to work in palestine. Work visas are not transferable from one employer to another. So when an employee changes jobs, he needs to apply for a new work permit.

Visa 31
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Minimum Wage

Overtime Pay

Visa & Immigration