Talent Wiki - Israel

Your quick guide on talent and labor compliance norms in Israel




Israeli Shekel (ILS)


Hebrew, Arabic, English

Payroll Frequency


GDP per Capita


Employer Tax

29.33% to 19.8%

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

Local Universities

The top local universities in Israel includes the following:

Tel Aviv University


Local: 1

World: 226

Hebrew University of Jerusalem


Local: 2

World: 238

Technion – Israel Institute of Technology


Local: 3

World: 404

Weizmann Institute of Science


Local: 4

World: 445

Ben-Gurion University of the Negev


Local: 5

World: 540

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 29476.67 ILS 8395.33 USD
General Manager 48514.67 ILS 13817.60 USD
Business Development Manager 27245 ILS 7759.72 USD
Business Analyst 17647.58 ILS 5026.26 USD
Financial Analyst 19130.92 ILS 5448.73 USD
Project Manager 22802.83 ILS 6494.54 USD

Talent Sourcing Tips

Top Local Job Boards:

Nefesh B’Nefesh,  JobMaster, JobNet

Number of LinkedIn users:


Top Recruitment Agencies:

DevsData LLC, UpStartHR, Manpower 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 (2023)

Date Name Type
6 Apr Passover (Day 1) National holiday, Hebrew
12 Apr Passover (Day 7) National holiday, Hebrew
26 Apr Yom HaAtzmaut National holiday, Hebrew
26 May Shavuot National holiday, Hebrew
16 Sep Rosh Hashana National holiday, Hebrew
17 Sep Rosh Hashana (Day 2) National holiday, Hebrew
25 Sep Yom Kippur National holiday, Hebrew
30 Sep Sukkot (Day 1) National holiday, Hebrew
7 Oct Shemini Atzeret / Simchat Torah National holiday, Hebrew

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 16 days Yes
Sick Leave 18 days Yes
Maternity Leave 26 weeks Yes


Payroll Cycle

In Israel, the payroll cycle is monthly.

Minimum Wage

The National minimum wage in Israel is 5,400.00 ILS per month.

Overtime Pay

The standard working hours in Israel are 48 hours for a five-day workweek.


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


Employer Payroll Tax

Type of Contribution Tax Rate
National Insurance For residents 0 – 6,331 ILS 3.55%
6,331 ILS – 45,075 ILS 7.6%
For non-residents 0 – 6,331 ILS 0.59%
6,331 ILS – 45,075 ILS 2.65%
Severance Pay 8.33%
Pension Fund 6.50% (7.50% including disability insurance)
Advance Study Fund Up to 7.5%

Employee Payroll Tax

Type of Contribution Tax Rate
National Insurance For residents 0 – 6,331 ILS 0.40%
6,331 ILS – 45,075 ILS 7%
For non-residents 0 – 6,331 ILS 0.04%
6,331 ILS – 45,075 ILS 0.87%
Health Insurance (Residents only) 0 – 6,331 ILS 3.10%
6,331 ILS – 45,075 ILS 5%
Pension Fund 6%

Employee Income Tax

Taxable Annual Income (ILS) Tax on First amount Tax Rate
0 – 77,400 0 10%
77,400 – 110,880 7,740 14%
110,880 – 178,080 12,427 20%
178,080 – 247,440 25,867 31%
247,440 – 514,920 47,369 35%
514,920 – 663,240 140,987 47%
Above 663,240 210,697 50%


The Standard VAT rate in Israel is 17%

Offboarding & Termination

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. 

Streamline payroll and compliance for your international workforce


Minimum Wage

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 & Immigration