Our Pricing

One platform for payroll in Israel. Eliminate ongoing admin of local compliance, taxes, benefits, or opening an entity.

Basic

Hire and pay employees and contractors in Israel

$399

Monthly

Premium

HR Services and additional employee benefits

$750

Monthly

Still Have Questions On Israeli Payroll?

How are salaries structured in Israel?

Salaries generally have three deductible components to them – income tax, bituach leumi (National Insurance) and pension/severance. Income tax is completely paid by the employee. Bituach Leumi is split between the employee and employer and pensions are contributed from both the employee (6% of gross income) and the employer (6.5%) as well as employer contributed severance fund deposits (8.33%). These are all mandatory.

Optional benefits are more limited in Israel. The primary additional benefit that you can give your employee is called a keren hishtalmut in Hebrew. Essentially it’s a short term tax-free (limited) investment vehicle whereby the employer contributes an additional 7.5% to the fund and the employee 2.5%

Your company’s relationship with Route 38 will be solely through our US entity. You will have no connection to our Israeli entity or, legally, the employee. There you go, no Israeli tax exposure

Anywhere from 1-6 weeks depending on responsiveness of your organization and the mood of your legal team. The biggest time constraint is generally the MSA that needs to be agreed upon between our US entity and your organization.

There are many ways to go about this, including checking out our content and requesting a brief summary of services from our office to present to your team. The best approach to convince the uninformed is to provide a general overview of the service itself and how it may help your company and then schedule a consultation with our sales reps to explain the nitty gritty to the decision maker.
There are a number of benefits to local employment, including, but not limited to: 1) Legal compliance on both sides of the ocean 2) Mitigating Israeli tax exposure for your company 3)Simplifying your employee’s tax reporting obligations in Israel 4) Potential tax savings for US citizens