Hire employees
and contractors in Israel

Remote’s guide to employing in Israel.

Capital city
New Israeli shekel (ILS)
Population size
Language spoken
Hebrew, Arabic, English

Facts & stats

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.

Israel Map
  • Capital city
  • Currency
    New Israeli Shekel (ILS)
  • Language spoken
    Hebrew, Arabic, English
  • Population size
  • Ease of doing business
    Very easy
  • Cost of living index
  • Payroll frequency
  • VAT - standard rate
  • GDP - real growth rate

Grow your team in Israel with Remote

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.

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Israel risks illustration

Risks of misclassification

Israel, like many other countries, treats self-employed contractors and full-time employees differently. Misclassification of contractors in Israel may lead to fines and penalties for the offending company.


Employing in Israel

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.

Public holidays

Date Holiday Name Extra information
Sabbath Weekly holiday when schools, government institutions, public transportation, and most retailers are closed.
Seventh day of Passover
Independence Day
Rosh Hashanah (New Year)
Yom Kippur (Day of Atonement)
Sukkot (Feast of Tabernacles)
Shmini Atzeret

In Israel, the minimum wage is 5,300 ILS per month.

For customers of Remote, all employee payments will be made in equal monthly instalments 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 7 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.


Competitive benefits package in Israel

Beyond providing your employees with all statutory benefits in Israel, Remote can help you create a custom benefits package for your Israeli team. A competitive benefits package may include perks such as:

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Taxes in Israel

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.
  • Employer

    • 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
  • Employee payroll taxes

    • 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
  • Employee income taxes

    • 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)

Types of leave


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.

Pregnancy and
maternity 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.

  • For the first day of sick leave, the employee is not entitled to pay.
  • On the second and third day, the employee is entitled to 50% of their regular pay.
  • From the fourth day onward, the employee is entitled to 100% of their regular pay.
  • Bereavement Leave: In the event of the death of an immediate family member, the employee is entitled to a number of paid grief days determined by the standard of the employee’s community. This leave is capped at seven days. Employees must be a member of a community with a standard seven-day grieving period to be entitled to the full seven days, although this rule is flexible in certain cases. The grief period during which the employee is absent from work is fully paid and is not to be deducted from the employee’s annual vacation or sick leave allowance. Employees become eligible for bereavement leave in Israel after three months of employment.


Termination process

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.

Notice period

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.

Severance pay

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.

Probation periods

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.

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