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Top 5 European countries for expats in 2025: our choices and relocation criteria
Top European Destinations for Skilled Expats: Our Year-End Picks
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Fostering gender equality in the global remote workplace: challenges and solutions
Explore the major challenges of workplace gender equality in an increasingly globalized and digitalized world and examine how international remote companies can create equal opportunity and implement changes
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Acvian Platform
Our all-in-one tool to streamline
your workforce management.
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Customer care is our top priority.
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Legal employment and workforce management on your behalf with custom solutions to suit your specific niche and needs.
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Guide
Top 5 European countries for expats in 2025: our choices and relocation criteria
Top European Destinations for Skilled Expats: Our Year-End Picks
Read article
Article
Fostering gender equality in the global remote workplace: challenges and solutions
Explore the major challenges of workplace gender equality in an increasingly globalized and digitalized world and examine how international remote companies can create equal opportunity and implement changes
Read article
Countrypedia
Hire and manage employees in Israel
As your Employer of Record (EOR) in Israel, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
November 20, 2024
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Table of Contents
Quick facts
Israel's economy is a highly developed, modern economy, with a strong technology sector. The country has a diverse labor market, with significant employment in fields such as high-tech, healthcare, and education. Employment regulations are in place to ensure workers' rights, including minimum wage laws, paid leave entitlements, and a national health insurance system.
Employment Contracts
In Israel there are 3 types of employment agreements:
- Fixed-term Employment Contracts
- Indefinite, Open-ended Employment Contracts
- Collective Bargaining Agreements (CBAs)
Probation Period
New employees may work a probationary period ranging from 1 to 3 months, depending on the terms of their contract or collective agreement.
Working Hours
A full workweek consists of 42 hours, typically Sunday through Thursday. Regular working days are 8.1 hours, with a 30-minute break.
Vacation Days
- Employees working five days a week are entitled to 12 net vacation days for the first five years.
- From the sixth year onward: 14 net vacation days for the 6th year, 15 days for the 7th, 16 days for the 8th, and an additional day each year, up to 20 days after 12 years.
Sick Leave
- For the first day of sick leave, employees are not paid.
- On the second and third days, employees are entitled to 50% of their regular pay.
- From the fourth day onward, employees are entitled to 100% of their regular pay.
Wages and Salary Payment
- The payroll cycle is monthly, and salaries are paid no later than the 7th day of the following month.
- Minimum wage (since 2024): NIS 5,880 gross per month.
Public Holidays
- There are 6 national holidays in Israel: Rosh Hashana (2 days), Sukkot (2 days), Yom Kippur, Passover (2 days), Shavuot, and Independence Day.
- There is no substitute holiday system, and holiday eves are typically half days for employees.
Employer Taxes
- Employers contribute to Social Security, with contributions varying by income brackets.
- Employers also contribute to various funds like the pension fund (6.5%) and severance fund (8.33%).
Employee Taxes
- Employees must contribute 6% to the pension fund and 8.33% to the severance fund.
- Contributions to National Health Insurance are deducted from employees' salaries.
Notice Period
- For termination within the first year, the notice period is 1 day for each month worked, with a maximum of 6 days in the first year.
- After the first year, 30 days' notice is required for termination.
Termination and Severance Pay
Severance pay is calculated at 1 month's salary for every year worked. If the employer contributes 8.33% of the salary to a severance fund each month, no additional severance is required upon termination.
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Description | USD Sum | USD Sum |
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Monthly Employer Taxes | 00.00 | 00.00 |
Monthly Payroll Cost | 00.00 | 00.00 |
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