Employer Guide to Israel

Capital City

Jeruslem

Currency

New Israeli Shekel ₪

Official Language

Hebrew

Payroll Frequency

Monthly

Population

9,900.000

Average Monthly Salary

12,100 NIS

Employer Taxes

Israeli employers contribute roughly 21% to 24% in payroll overhead — including 8.33% severance, 6.50% pension, and 4.51–7.60% national insurance, depending on income level.

Time Off

Public Holidays

Israel has 9 national public holidays based on the Jewish calendar, including Passover, Rosh Hashanah, Yom Kippur, Sukkot, Simchat Torah, Shavuot, and Independence Day.

Parental Leave

Women are entitled to paid maternity leave of 15 weeks if they have contributed to National Insurance for at least 10 of the last 14 months (or 15 of the last 22). Those who contributed for at least 6 months qualify for 8 paid weeks, with the entitlement increasing with each additional month of contributions.

Women employed for over 12 months with the same employer may extend their leave to a total of 26 weeks, with the balance unpaid.

Fathers may take over the mother’s remaining leave starting from week 7, provided eligibility conditions are met. Payments come from the National Insurance Institute (Bituach Leumi), usually covering 100% of salary up to a legal cap.

Sick Leave

Employees are entitled to 1.5 days of paid sick leave per month, for up to 18 days. The first day is unpaid and considered as a qualifying period. 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. Upon return to work, the employee must provide a medical certificate from a doctor.

Bereavement Leave

Employees with at least 3 months of service get up to 7 paid days off for the death of an immediate family member, based on cultural or religious customs.

Statutory Time Off

Employees working a five-day week are entitled to at least 12 paid vacation days per year, while those on a six-day week receive at least 14. After four years with the same employer, entitlement gradually increases with seniority, up to a legal maximum of 28 days. Vacation leave is calculated separately from public holidays and is based on a full year of employment.
Hourly and part-time workers are entitled to vacation on a pro-rated basis.

Employment Lifecycle

Working Hours & Overtime

The standard full-time workweek in Israel consists of 42 hours, typically spread across Sunday to Thursday. Overtime is compensated at a rate of 125% of the employee’s regular hourly wage for the first two overtime hours per day, and 150% for any additional overtime hours. Overtime must be approved in advance and is often governed by individual contracts or collective agreements.

Probation Period

Probation periods must be specified in a written employment contract. During this period, employees retain all statutory rights.

Notice Period

In the first 6 months, notice is 1 day per month. From months 7–12, it’s 6 days plus 2.5 days per month. After a year, the notice period is 30 days, unless the contract says otherwise.

Termination

Israeli labor law mandates that employers conduct a formal hearing before terminating an employee. The employee must be informed of the reasons for the intended dismissal and given an opportunity to respond in person. Only after the hearing is concluded and the response considered in good faith may the employer issue a formal written notice of termination.

Severance

Employers contribute a portion of employees’ severance pay to their pension or provident fund each month. Some employers contribute the full amount, which replaces the end-of-employment severance payment under Section 14 of the law.

If the full amount is contributed, employees receive no additional severance upon leaving. If only part is contributed, employees dismissed after at least one year of work in Israel are entitled to receive the remaining balance from the employer.

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