Israel

Last Update by Katie, 10 Jun 2024

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Exchange Rate

13 Jun 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

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

Written

Probation

1- 12 months depending on the collective agreement. Typical practice is 3 months.

Termination

  • Notice during probation for employer and staff:
    -1 month service: 1 week
  • Notice after probation:
    - 1 year servicer: 1 day per each month worked
    - 2 years' service: 14 days plus one day per each additional 2 months worked
    - 3 years' service: 21 days plus one day per each additional 2 month worked
    - Over 3 years' service: 1 month
  • Severance:
    - Employer terminates after 1 year service: 1 month’s salary for each year of service

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 12 working days
17 working days
23 working days
All staff with 5 years' service working a 5-day week
All staff with 6 -9 years' service
Over 9 years' service
Sick Leave 18 calendar days All staff
Maternity Leave (BPL) 15 weeks
26 weeks
Expectant mothers with under 12 months' service
Expectant mothers with 12 months' service
Paternity Leave 7 working days All expectant fathers 24 after the birth
Bereavement Leave 7 calendar days All staff with over 3 months' service

Reference

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