- Country Guide
- Israel
Israel
Last Update by , 12 Aug 2024
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Exchange Rate
01 Dec 2024
Cost of Living
Indicative value for a working adult in a city: Labor Code (Law no. 65-99)
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (ILS) |
|---|---|
| McDonalds Set Meal | 60 |
| Monthly Train and Bus Tickets | 234 |
| 3 Bedrooms Rental (City Center) | 10,968 |
| 3 Bedrooms Rental (Outskirt) | 7,841 |
Current Inflation Rate
2.7%
Wage
Minimum Wages
- 5,880.02 ILS per month since 1st April 2024.
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (ILS) |
|---|---|
|
Entry-Level
Fresh Graduate
|
9,000 |
|
Mid-Level
5 Years
|
13,500 |
|
Experienced & Managerial Level
10 Years
|
21,000 |
|
Specialized & Senior-Level
15 Years
|
33,000 |
Annual Salary Growth
5.2%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| National Insurance |
3.55%- On monthly Income up to 7,522 ILS 7.6% - difference between income 7,522 -49,030 ILS |
0.40% 7.00% |
All resident staff |
| Non-Residents National Insurance |
0.59%- monthly Income up to 7,522 ILS. 2.65%- monthly income7,522 - 49,030 ILS |
0.04% 0.87% |
All non- resident staff |
| Health Insurance | - |
3.10%-monthly income up to 7,522 IL S5% - monthly income 7,522 - 49,030 ILS |
All staff |
| Severance Pay (Mandatory) | 8.33% | - | All saff |
| Pension Fund | 6.50% | 6.00% | All staff |
| Convalescence Pay |
4 days after 1st years' service 5 days during 2-3 years' service 6 days during 4-10 years' service 7 days during 11-15 years' service 8 days during 16-19 years'' service 9 days at 20 or over years' service Paid at 418 ILS per day in private sector |
- | All staff including those part-time in private sector after 1 year service |
Other Benefit
Other common employment benefits in Israel include:
- Private Health Insurance: Around 250 USD per month
- Life Insurance cost: Around 35 USD per month
Income Tax
Residents
-
Tax year: 1st of January t-31st of December
Filing due date: 30th April the following year
Country Level
| Taxable Income | Rate |
|---|---|
| Up to 81,480 | 10% |
| 81,481 - 116,760 | 14% |
| 116,761 - 187,440 | 20% |
| 187,441 - 260,520 | 31% |
| 260,521 - 542,160 | 35% |
| 542,161 -p 698,280 | 47% |
| 698,281 + | 50% |
Non-residents
- Taxed the same as residents
Working Hours
Statutory
42 hours
7/ 8.4 hours a day, 5 /6 days a week
Typical practice
42 hours
Sunday- Thursday 8:30 - 18:00
Some jobs require working on Friday for half day
Overtime
First 2 hours: 125% of normal rate of pay
Next 2 hours/ on holidays/ normal weekly rest days: 150% of the normal rate of pay
Employment Contract
Permanent
Contract Format
For Locals: Can be verbal or written in Hebrew or Arabic and issued to staff within 30 days
For expats: Must be in writing, bilingual contracts in Hebrew or Arabic and English are accepted and issued to staff within 30 days
Payroll Currency
ILS
Probation
Common practice 1 - 3 months but cannot exceed 6 months
Contract Period
No minimum duration
Termination
-
Notice during probation for staff and employers:
- 1 week -
Involuntary termination for salaried staff:
- Under 6 months' service: 1 day for each completed months' service
- 6-12 months' service: 6 days plus 2.5 days per months' service beyond 6 months
- Over 1 year service: 30 days -
Severance:
- All staff with 1 year service who are dismissed for any reason or a fixed-term contract has not been renewed are eligible
- Staff who resign are not eligible
- 1 year service: 1 months' salary for each completed year
Public Holiday
9 days
Country Level
| Date | Name |
|---|---|
| 23 Apr | Passover (Day 1) |
| 29 Apr | Passover (Day 7) |
| 14 May | Yom HaAtzmaut |
| 12 Jun | Shavuot |
| 03 Oct - 04 Oct | Rosh Hashana |
| 12 Oct | Yom Kippur |
| 17 Oct | Sukkot (Day 1) |
| 24 Oct | Shemini Atzeret / Simchat Torah |
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave |
16 calendar days - for each year up to 5 years 18 calendar days - 6th years of service 21 calendar days - 7th year of service 1 extra day per year capped at 28 calendar days - 8th year onwards |
All staff working 5 days per week with 1 year service |
| Sick Leave |
18 working days per year Capped at 90 working days over 5 years |
All staff |
| Maternity Leave |
15 weeks 26 weeks |
All expectant mothers with under 12 months' service All expectant mothers with 12 months' service |
| Paternity Leave | 7 working days | All expectant fathers 24 hours after the birth |
| Bereavement Leave | 7 calendar days | All staff with 3 months' service |
Reference
- https://www.numbeo.com/cost-of-living/in/Tel-Aviv-Yafo
- https://www.hr-inform.co.uk/employment_law/employment-law-in-israel
- https://www.lexology.com/library/detail.aspx?g=87a2a39b-b09a-4d3c-9e51-1fd330da4825#:~:text=The%20law%20freezes%20the%20value,to%20an%20employee%20in%202023.
- https://www.gov.il/BlobFolder/generalpage/employment_guides/en/employment_en.pdf
- https://www.cpa-dray.com/en/being-employed-in-israel/#:~:text=Length%20of%20notice%20in%20Israel%20for%20an%20employee%20paid%20by,each%20additional%202%20months%20worked.
- https://egertcohen.co.il/wp-content/uploads/2021/06/friendlyGuide.pdf
- https://iuslaboris.com/insights/terminations-under-israeli-law/
- https://www.nbn.org.il/life-in-israel/employment/employee-rights-and-benefits/
- https://www.mor.law/en/israel-workers-rights/
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Contact UsCountry Guide - Israel
Last updated: 12 Aug 2024
Exchange Rate
Currency (ILS)
- 1 CNY = 0.185 ILS
- 1 USD = 1.32 ILS
Other currencies can be retrieved via the country guide link above.
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Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
Cost of Living
Indicative value for a working adult in a city: Labor Code (Law no. 65-99)
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (ILS) |
|---|---|
| McDonalds Set Meal | 60 |
| Monthly Train and Bus Tickets | 234 |
| 3 Bedrooms Rental (City Center) | 10,968 |
| 3 Bedrooms Rental (Outskirt) | 7,841 |
Current Inflation Rate
2.7%
Wage
Minimum Wages
- 5,880.02 ILS per month since 1st April 2024.
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (ILS) |
|---|---|
|
Entry-Level
Fresh Graduate
|
9,000 |
|
Mid-Level
5 Years
|
13,500 |
|
Experienced & Managerial Level
10 Years
|
21,000 |
|
Specialized & Senior-Level
15 Years
|
33,000 |
Annual Salary Growth
5.2%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| National Insurance |
3.55%- On monthly Income up to 7,522 ILS 7.6% - difference between income 7,522 -49,030 ILS |
0.40% 7.00% |
All resident staff |
| Non-Residents National Insurance |
0.59%- monthly Income up to 7,522 ILS. 2.65%- monthly income7,522 - 49,030 ILS |
0.04% 0.87% |
All non- resident staff |
| Health Insurance | - |
3.10%-monthly income up to 7,522 IL S5% - monthly income 7,522 - 49,030 ILS |
All staff |
| Severance Pay (Mandatory) | 8.33% | - | All saff |
| Pension Fund | 6.50% | 6.00% | All staff |
| Convalescence Pay |
4 days after 1st years' service 5 days during 2-3 years' service 6 days during 4-10 years' service 7 days during 11-15 years' service 8 days during 16-19 years'' service 9 days at 20 or over years' service Paid at 418 ILS per day in private sector |
- | All staff including those part-time in private sector after 1 year service |
Other Benefit
Other common employment benefits in Israel include:
- Private Health Insurance: Around 250 USD per month
- Life Insurance cost: Around 35 USD per month
Income Tax
Residents
-
Tax year: 1st of January t-31st of December
Filing due date: 30th April the following year
Country Level
| Taxable Income | Rate |
|---|---|
| Up to 81,480 | 10% |
| 81,481 - 116,760 | 14% |
| 116,761 - 187,440 | 20% |
| 187,441 - 260,520 | 31% |
| 260,521 - 542,160 | 35% |
| 542,161 -p 698,280 | 47% |
| 698,281 + | 50% |
Non-residents
- Taxed the same as residents
Working Hours
Statutory
42 hours
7/ 8.4 hours a day, 5 /6 days a week
Typical practice
42 hours
Sunday- Thursday 8:30 - 18:00
Some jobs require working on Friday for half day
Overtime
First 2 hours: 125% of normal rate of pay
Next 2 hours/ on holidays/ normal weekly rest days: 150% of the normal rate of pay
Employment Contract
Fixed-Term
Used for specific short-term projects, seasonal activities and freelance work
Probation
Common practice 1 - 3 months but cannot exceed 6 months
Termination
-
Notice during probation for staff and employers:
- 1 week -
Involuntary termination for salaried staff:
- Under 6 months' service: 1 day for each completed months' service
- 6-12 months' service: 6 days plus 2.5 days per months' service beyond 6 months
- Over 1 year service: 30 days -
Severance:
- All staff with 1 year service who are dismissed for any reason are eligible
- Staff who resign are not eligible
- 1 year service: 1 month’s salary for each year of service
Permanent
Probation
Common practice 1 - 3 months but cannot exceed 6 months
Termination
-
Notice during probation for staff and employers:
- 1 week -
Involuntary termination for salaried staff:
- Under 6 months' service: 1 day for each completed months' service
- 6-12 months' service: 6 days plus 2.5 days per months' service beyond 6 months
- Over 1 year service: 30 days -
Severance:
- All staff with 1 year service who are dismissed for any reason or a fixed-term contract has not been renewed are eligible
- Staff who resign are not eligible
- 1 year service: 1 months' salary for each completed year
Public Holiday
9 days
2024
| Date | Name |
|---|---|
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave |
16 calendar days - for each year up to 5 years 18 calendar days - 6th years of service 21 calendar days - 7th year of service 1 extra day per year capped at 28 calendar days - 8th year onwards |
All staff working 5 days per week with 1 year service |
| Sick Leave |
18 working days per year Capped at 90 working days over 5 years |
All staff |
| Maternity Leave |
15 weeks 26 weeks |
All expectant mothers with under 12 months' service All expectant mothers with 12 months' service |
| Paternity Leave | 7 working days | All expectant fathers 24 hours after the birth |
| Bereavement Leave | 7 calendar days | All staff with 3 months' service |
Reference
- https://www.numbeo.com/cost-of-living/in/Tel-Aviv-Yafo
- https://www.hr-inform.co.uk/employment_law/employment-law-in-israel
- https://www.lexology.com/library/detail.aspx?g=87a2a39b-b09a-4d3c-9e51-1fd330da4825#:~:text=The%20law%20freezes%20the%20value,to%20an%20employee%20in%202023.
- https://www.gov.il/BlobFolder/generalpage/employment_guides/en/employment_en.pdf
- https://www.cpa-dray.com/en/being-employed-in-israel/#:~:text=Length%20of%20notice%20in%20Israel%20for%20an%20employee%20paid%20by,each%20additional%202%20months%20worked.
- https://egertcohen.co.il/wp-content/uploads/2021/06/friendlyGuide.pdf
- https://iuslaboris.com/insights/terminations-under-israeli-law/
- https://www.nbn.org.il/life-in-israel/employment/employee-rights-and-benefits/
- https://www.mor.law/en/israel-workers-rights/
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000