Remote’s guide to employing in Israel.
Israeli new shekel
Hebrew, Arabic, English
Remote-Owned Local Entity
We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.
Established shortly after World War II, Israel sits on the eastern side of the Mediterrannean Sea. While Israel claims Jerusalem as its capital, most countries maintain their embassies in Tel Aviv, the country’s technological and economic center. With several holy sites contained within its borders, Israel regularly receives Jewish, Christian, Muslim, and other visitors to see its rich history.
Israeli new shekel
Hebrew, Arabic, English
Ease of doing business
Cost of living index
$$$$ (9 of 139 nations)
VAT - standard rate
GDP - real growth rate
To employ workers in Israel, a company must either own a legal entity in the country or work with an employer of record, such as Remote. Through Remote’s global employment and global payroll solutions, we can employ and pay team members on your behalf through our local legal entity. Remote handles payroll, taxes, benefits, and compliance, so you can focus on growing your business.
Without a central constitution, much of Israel’s employment law exists through direct legislation and case law. Employees in Israel do have certain rights employers must observe, including the right for Jews to rest on the Sabbath each week and protections for all workers from being fired while on strike. For companies hiring from abroad, the complexity of Israeli employment law can sometimes feel overwhelming.
Contact Remote to learn more about your options for employing workers in Israel.
|Saturday, April 16, 2022||Passover (Day 1)||Local Holiday - Tel Aviv|
|Friday, April 22, 2022||Passover (Day 7)||Local Holiday - Jerusalem|
|Thursday, May 5, 2022||Yom HaAtzamut||National Holiday|
|Sunday, June 5, 2022||Shavuot||Passover Begins - National Holiday|
|Monday, September 26, 2022||Rosh Hashanah||National Holiday|
|Tuesday, September 27, 2022||Rosh Hashanah (Day 2)||National Holiday|
|Wednesday, October 5, 2022||Day of Atonment (Yom Kipur)||National Holiday|
|Monday, October 10, 2022||Sukkot||National Holiday|
|Monday, October 17, 2022||Simchat Torah||National Holiday|
In Israel, the minimum wage is 5,300 ILS per month.
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in Israel fast. The minimum onboarding time we need is only nine working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Israel are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
In order to access specific information about our benefits packages in Israel, start onboarding your first employee with Remote today.
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Israel.
Note that residents and nonresidents pay different tax rates, and that contributions to National Insurance and other programs may increase for higher incomes. Nonresidents do not receive all advantages of contributions to the National Insurance program.
3.55-7.6% - National Insurance for residents
0.59-2.65% - National Insurance for nonresidents
6.50-8.33% - Pension
2.50% - Disability
7.5% - Study Fund
20.64-28.58% - Total Cost of Employment
0.4-7.0% - National Insurance for residents
0.04-0.87% - National Insurance for nonresidents
3.1-5.0% - Health Levy
6% - Pension
2.5% - Study Fund
10% (Up to 75,960 ILS)
14% (75,961-108,960 ILS)
20% (108,961-174,960 ILS)
31% (174,961-243,120 ILS)
35% (243,121-505,920 ILS)
47% (505,921-651,600 ILS)
50% (Over 651,600 ILS)
All employees in Israel with a five-day workweek are entitled to a minimum of 12 days leave per year. Employees with a six-day workweek are entitled to 14 days of leave per year. After four years of employment, the number of vacation days goes up by two per year. An employee can accumulate a maximum of 28 vacation days. There are also nine paid public holidays. Israel also observes four additional holidays where, though not mandatory, many businesses and government offices offer collective or optional paid leave.
Expecting mothers are entitled to 14 weeks of paid leave with 100% compensation, with an additional 12 weeks unpaid. Weeks 6-14 can be taken by the father instead of the mother.
In Israel, the father can take paid leave instead of the mother, starting from the sixth week after the beginning of her maternity leave and ending after the 14th week.
Sick leave in Israel is accrued at a rate of 1.5 days per month with a maximum of 90 days total.
In Israel, employers are obligated to follow a fair and transparent process before terminating an employee. Israel requires employers to invite the employee to a hearing with a document in writing that presents the reason(s) why they would like to proceed with a termination. The employee is given time to respond at the hearing and has the option of appointing a lawyer to present their case. The employer must take into account everything that was said by the employee at the hearing and assess the need for termination again. Companies should consult legal counsel before proceeding with a termination in Israel.
During the first six months, one day of notice is accumulated for each month of employment. In addition to the six days accumulated, 2.5 days of notice are accumulated for each month of employment from the sixth month to the end of the first year. Following the first year, termination requires a 30-day notice.
Terminated employees in Israel receive one month’s salary for every year of service as severance pay. Employees who have worked for less than one year are not entitled to severance pay. The monthly salary used to calculate the severance payment is the employee’s average salary over the last 12 months. Some employers add a severance component of 8.33% to the employee’s monthly compensation.
Probationary periods are informally allowed in Israel, usually lasting a few months. While employees are to be treated as full employees with all accorded benefits during the probationary period, employers may dismiss employees during the probationary period more easily than they can dismiss more tenured employees.