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Israel

Basic Economic Summary

Overview

  • Local Languages: Hebrew, Arabic, English
  • Capital: Jerusalem
  • Currency: Israeli Shekel
  • Population: 9.053 million
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD): 43,592.08 USD (2019)
  • Exchange Rate (NIS/USD): 0.31
  • PISA Ranking (2018): 39
  • Number of University Graduates (2018): 320,000

Local Universities

Top Local Universities

University Rankings
Tel Aviv University Ranking in Israel: 1, World Ranking: 74
Hebrew University of Jerusalem Ranking in Israel: 2, World Ranking: 167
Technion - Israel Institute of Technology Ranking in Israel: 3, World Ranking: 227
Weizmann Institute of Science Ranking in Israel: 4, World Ranking: 246
Ben-Gurion University of the Negev Ranking in Israel: 5, World Ranking: 341

Salary Data

Average Salary of Jobs (Per Month)

Job Title Salary Range - per year (in NIS) Salary Range (in USD)
Technical Product Engineer 108,132 - 188,806 33,286.64- 81,994.20
Software Developer 168,114 - 298,354 51,751.11 - 91,843.34
Data Analyst 151,206 - 266,359 46,546.26 - 81,994.20
UX Designer 134,150 – 233,038 41,295.85 - 71,736.89
Project Manager 146,544 – 258,147 45,111.14 - 79,466.28
Sales Executive 461,834 – 876,229 142,167.94 – 269,732.58
Chief Accountant 170,794 - 301,547 52,576.10 – 92,826.25

More information about average salaries in Italy can be found on SalaryExpert.com

Talent Sourcing Tips

Taxes

Employer Payroll Tax

There are no payroll taxes apart from employer’s national insurance contribution as below: 

  • For residents
Rate Monthly Income in NIS
3.55% 6,331
7.6% 37,689
  • For non - residents
Rate Monthly Income in NIS
0.59% Upto 6,331
2.65% Upto 37,689

Income tax is levied annually as follows:

Rate Annual Salary Level in NIS
10.00% 0 - 75,480
14.00% 75,480 - 108,360
20.00% 108,360 - 173,880
31.00% 173,880 - 241,680
35.00% 241,680 - 502,920
47.00% 502,920 - 647,640
50% Above 647,640

More information on income taxes levied can be found here.

Minimum Wage & Payroll

Minimum Wage

The national minimum wage set by law is ILS 5300 per month.

Payroll Cycle

Workers are paid monthly depending on the employer. 

Bonus

13th month salary

The Israeli regulation requires a yearly recreational pay for employees working longer than 12 months. This payment is done after the 12 month in July or August.

Working Hours & Statutory Leave

Working hours

The standard working hours in Israel are 42 hours a week from Sunday to Thursday. It is generally from 8:30am to 4:00pm.

Overtime pay

Israel has a fair policy of overtime pay. The first two hours of overtime, employers pay you 1.25 of your hourly wage. For every hour after that, employers pay you 1.5 of your hourly wage.

Public Holidays

There are a total of 9 public holidays in Ireland. The list of public holidays can be found here.

Leaves

Annual Paid Leave

In Israel, an employee who has been working for a year with the same employer is entitled to leave in the manner below:

No. of years worked Leave days allotted
First 5 years 16
From the sixth year 18
From the seventh year 21
From the eight year An additional day for each year of work upto a leave of 28 days

Sick Leave

Under the Israelian law, employees won’t receive any salary on the first day of absence. On the second and third day, the employee is entitled to receive half of his/her daily wage and from the fourth day onwards, the employee is expected to receive the full wage as if he/she was not absent from work. If a parent of a child with disabilities needs to take time off from work to take care of his/her child, he is entitled to full wages starting from the first day of absence.

Parental Leave

  • Maternity Leave

Employed working mothers who have worked for less than a year with an employer are given a maternity benefit of 15 weeks. Maternity Benefits of 26 weeks are given to mothers who have worked for more than a year with an employer. In case of multiple births, a female employee is entitled to three weeks of additional leave for each additional baby after the first.

  • Paternity Leave

The spouse of the employee who has just given birth to a child is entitled to a leave of 7 days of leave during the same time as the mother’s maternity leave.

Bereavement Leave

Employees are entitled to receive full wages in their absence in case where they need to fulfill their obligations of mourning in accordance with their religion for upto 7 calendar days.

Offboarding & Termination

Termination Process

The law requires either party to give notice before terminating the contract. It may also be terminated when the person retires at the age of 65. If an employer terminates the contract of employment without giving prior notice, he/she is entitled to provide for one month full wages to the other party.

Notice Period

The statutory notice period of discharge and resignation in Israel is as follows:

Number of days worked Advance notice period
First Year One day for every month worked
Second Year 14 days
Third Year 21 days
After three years One month

Severance Pay

Under the Severance Pay Law, the discharged employee is entitled to severance pay of one month’s salary for each month worked.

Probation period

Probation periods in Israel range from one to twelve months depending on the terms of the contract. 

VAT

17%

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