Make employment in Israel easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Israel, all in one easy-to-use platform.
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.
Capital
Official language
Currency
Population
Cost of living index
GDP real growth rate
Payroll frequency
VAT rate
Ease of doing business
Want to employ workers in Israel? Companies hiring in Israel are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Israel and keep you compliant. Remote can hire, onboard, and pay your Israel team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Israel. Sign up now to get started or talk to an expert for more details.
Employment taxes and statutory fees affect both your payroll and your employees' paychecks in Israel. Note that your employees may be liable for additional local taxes.
Employer
0.00% - 7.6%
National Insurance contribution
0.00%
Pension
0.00%
Severance fund
0.0%
Study Fund
Employee payroll taxes
0.0% - 7.0%
National Insurance for residents
0.00% - 0.87 %
National Insurance for nonresidents
min ILS 0 - max ILS 255
Mandatory Travel Allowance
0%
Disability Insurance mandatory for Remote customer employees
0.0% - 5.0%
Health Levy
0%
Pension
0.0%
Study Fund
Employee income taxes
0%
(Up to 75,960 ILS)
0%
(75,961-108,960 ILS)
0%
(108,961-174,960 ILS)
0%
(174,961-243,120 ILS)
0%
(243,121-505,920 ILS)
0%
(505,921-651,600 ILS)
0%
(Over 651,600 ILS)
At Remote, we provide tailored benefits to ensure that all Remote employees receive comprehensive coverage from top providers.
Remote’s Global Business Travel Insurance program is crafted to address the unique needs of your team, whether they are embarking on short business trips or traveling extensively throughout the year. With five comprehensive plan options—Basic, Standard, Premium, Premium Plus, and Standard Plus—this program ensures that your team members have the right level of coverage to protect their health, safety, and well-being while traveling for business.
Available in over 90 countries, the program provides extensive global coverage at competitive rates, offering peace of mind no matter where their work takes them. This optional benefit is designed to be flexible, allowing you to offer tailored coverage that meets the diverse needs of your workforce. By providing business travel insurance, you are taking proactive steps to safeguard your team from unforeseen events such as medical emergencies, trip disruptions, or loss of business equipment while they are on the road.
Coverages (values in USD):
Emergency & Accidental Medical: $1,000,000
Repatriation for Medical Treatment: 100% per trip
Emergency Medical Evacuation: $100,000
Repatriation of Mortal Remains: $25,000 per trip
Pre-existing Medical Conditions: For stable pre-existing medical conditions up to $50,000
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Coverages (values in USD):
Excludes Medical & Evacuation
Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips
Personal Liability: $100,000 per trip
Accidental Death & Permanent Total Disability: $100,000 per trip
Loss of Passport: $250 per trip
Legal Expenses: $10,000 per trip
Hijacking: $1,000 per trip
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Coverages (values in USD):
Emergency & Accidental Medical: $1,000,000
Repatriation for Medical Treatment: 100% per trip
Emergency Medical Evacuation: $100,000
Repatriation of Mortal Remains: $25,000 per trip
Pre-existing Medical Conditions: For stable pre-existing medical conditions up to $50,000
Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips
Personal Liability: $100,000 per trip
Accidental Death & Permanent Total Disability: $100,000 per trip
Loss of Passport: $250 per trip
Legal Expenses: $10,000 per trip
Hijacking: $1,000 per trip
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Coverages (values in USD):
Emergency & Accidental Medical: $1,000,000
Repatriation for Medical Treatment: 100% per trip
Emergency Medical Evacuation: $100,000
Repatriation of Mortal Remains: $25,000 per trip
Pre-existing Medical Conditions: For stable pre-existing medical conditions up to $50,000
Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips
Personal Liability: $100,000 per trip
Accidental Death & Permanent Total Disability: $100,000 per trip
Loss of Passport: $250 per trip
Legal Expenses: $10,000 per trip
Hijacking: $1,000 per trip
Cancellation & Curtailment: $2,000 per trip; subject to $100 deductible per Trip *Benefit not available to residents of the USA
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Coverages (values in USD):
Excludes Medical & Evacuation
Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips
Personal Liability: $100,000 per trip
Accidental Death & Permanent Total Disability: $100,000 per trip
Loss of Passport: $250 per trip
Legal Expenses: $10,000 per trip
Hijacking: $1,000 per trip
Cancellation & Curtailment: $2,000 per trip; subject to $100 deductible per Trip *Benefit not available to residents of the USA
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Offering mental health benefits is not mandatory in this country, but providing the benefit can significantly enhance the emotional well-being and overall productivity of employees. Remote offers a comprehensive employee mental wellbeing platform in partnership with one of the top-rated employee mental wellbeing providers. This platform is available on desktop and mobile apps and includes 1-to-1 therapy with a curated pool of top-quality therapists in over 35 languages. The advanced matching service finds each employee the right therapist within 48 hours, boasting a 98% success rate. Employees receive a personal wellbeing profile with tailored recommendations and information to track progress. The platform also offers a curated self-guided content library with audio mindfulness and meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers. Additionally, there are 24/7 mental health helplines for immediate support when an employee is struggling. Mental health program benefits may be offered to the employees from among 5 different plans. Offering mental health benefits is optional, but it can greatly enhance employee well-being and productivity. It is essential to be aware that in certain countries, mental health benefits may be categorized as ‘Benefits in Kind’ (BIK). This categorization means that the monthly premiums paid for the benefit might be counted as part of the employee’s taxable income according to the local tax laws. When mental health benefits are offered, they must be provided equally to all employees in the respective country.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Not included in the Basic plan
Team members can pay for therapy sessions themselves, if needed.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Includes one pre-paid Therapy/Coaching session per policy year
Team members can pay for extra therapy sessions themselves, if needed.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Includes three pre-paid Therapy/Coaching sessions per policy year
Team members can pay for extra therapy sessions themselves, if needed.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Includes six pre-paid Therapy/Coaching sessions per policy year
Team members can pay for extra therapy sessions themselves, if needed.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Includes twelve pre-paid Therapy/Coaching sessions per policy year
Team members can pay for extra therapy sessions themselves, if needed.
Clients can choose to offer the Wellness & Lifestyle Benefit and select from multiple contribution levels, providing their team members a monthly wallet, which they can use with their virtual card at approved stores, online retailers, or any other approved vendors related to Lifestyle and Wellness benefits. The offered services include:
Physical and mental health support such as gym memberships, fitness classes, therapy, mindfulness apps, and guided meditation.
Lifestyle services like streaming subscriptions (Spotify, Netflix), groceries, and other services that support work-life balance and personal well-being.
Personalized recommendations to help employees select benefits most relevant to their needs.
Platform support for employees needing immediate assistance or guidance on wellness-related concerns.
The available contributions are:
$25 USD
$50 USD
$100 USD
$150 USD
$200 USD
$250 USD
$300 USD
Israel has a developed economy with key industries in technology, finance, and manufacturing. With specific labor laws and tax regulations, employers in Israel must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.
Employers in Israel must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:
Minimum wage: Israel’s minimum wage is ILS 5,300 per month.
Payroll frequency: Salaries are generally paid monthly.
Standard working hours: The normal workweek in Israel is 42 hours, typically spread over five days.
Overtime: Employees are entitled to additional pay for overtime work, calculated at 125% of the regular wage for extra hours and 150% for work beyond specific thresholds.
Personal income tax: Israel has a progressive income tax system with rates ranging from 10% to 50% depending on income levels.
Employer contributions:
Employee contributions:
Corporate tax: The corporate income tax rate in Israel is 23%.
Tax reporting: Employers must file payroll taxes and contributions with the Israel Tax Authority regularly.
Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
Employers must stay updated on changes to Israel’s labor laws and tax regulations to avoid penalties.
Managing payroll in Israel requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.
The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.
Hiring contractors in Israel can be a strategic and cost-effective way for businesses to complete projects without the obligations of hiring full-time employees. Whether you are engaging independent contractors for specialized services or bringing in subcontractors for various tasks, understanding Israel’s laws and federal regulations is essential.
Remote helps businesses stay compliant when hiring contractors globally with these key features:
Global compliance support: Ensures adherence to labor laws in 200+ countries with localized contracts and proper documentation.
Misclassification protection: Includes built-in compliance checks and seamless contractor-to-employee conversion.
Centralized documentation: Maintains essential records for audits and automates tax filings.
Legal expertise: Provides guidance on complex local labor laws, simplifying international hiring.
Remote’s streamlined approach minimizes compliance risks and simplifies contractor management for businesses.
Remote simplifies contractor payments with:
Automated processing: One-click approvals, bulk payments, recurring invoices, and real-time tracking.
Global coverage: Payments in 200+ countries, multiple payment methods, and currency flexibility.
Cost and compliance: Fair price guarantee (pay only for active contractors), built-in compliance with regional regulations, and localized contracts.
Learn more about how Remote simplifies contractor management in Israel — get started for free today.
Our employer of record (EOR) service enables you to hire, manage, and pay top talent in Israel with speed and simplicity.
Remote’s EOR allows your company to legally hire employees in Israel without setting up a local legal entity. On paper, Remote is the official employer, and we take care of compliance, payroll, benefits (including equity), and other HR processes — while you maintain full control over your hire’s day-to-day responsibilities and performance management.
An EOR may be ideal if your company:
Needs to hire employees in Israel but doesn’t want to establish a local entity
Is exploring the Israeli market before committing to long-term expansion
Wants to ensure compliance with Israel’s complex labor laws and tax obligations
Requires a fast, cost-effective way to onboard employees in Israel
Needs a temporary hiring solution before setting up a permanent entity
Hiring in Israel comes with unique challenges, including strict labor protections, mandatory benefits, and complex payroll tax requirements. Remote’s EOR ensures you remain fully compliant while enabling you to grow quickly and efficiently.
Key benefits of hiring through our EOR in Israel include:
Faster market entry. Hire top talent in Israel right away, without waiting months to establish a local entity.
Full compliance with labor and tax laws. Israel has detailed employment protections, including rules on notice periods, severance, pension contributions, and social benefits. Remote ensures all local requirements are met, reducing risk.
Simplified payroll and benefits. We manage payroll calculations, tax withholdings, pension contributions, and other mandatory benefits, even as regulations change.
Lower costs. Avoid the significant expense and administrative burden of registering your own entity in Israel.
Local expertise. Our team of specialists understands Israel’s labor laws and HR best practices, so you and your employees are fully supported.
At Remote, we own our own legal entity in Israel, meaning we never rely on third parties. This ensures faster onboarding, reduced costs, and a smoother employee experience, backed by dedicated local support.
To learn more, and to see our EOR platform in action, book a demo with one of our friendly experts today.
CA$945
Per employee/month
Employ staff overseas without creating a local entity in 90+ countries
Begin onboarding supported by a dedicated specialist
Local payroll processed on schedule, every time
Compliance safeguards integrated into the service
Access competitive, flexible and localised benefits
In-house experts dedicated to providing local support
HR Essentials included as part of the standard offering
CA$39
Per employee/month
Robust, transparent global payroll processing
Easy self-serve platform
Personalised assistance from assigned specialists
Comply with local payroll regulations in each country
Centralised benefits administration
Includes HR Core by default
CA$39
per contractor/month
Pay only for contractors you engage with actively
Collaborate with contractors based internationally
Draft, edit and sign customised, localised contracts
Approve contractor invoices with a single click or set to auto-pay
Payments made transparent with full visibility
Comes with HR Core included as standard
