Israel

Currency
Israel shekel (ILS)
Payroll Frequency
Monthly
Employer Taxes
28.28%

About 

Israel

Israel is a country in western Asia, which defines itself as the nation-state of the Jewish people. It is bordered by Lebanon, Syria, Jordan, the Palestinian Territories, and Egypt and is considered to have the highest standard of living in the Middle East.

Overview

Population
9,416,160
Language
Hebrew
Capital
Jerusalem
Currency
Israel shekel (ILS)
Country code
+972
Min wage
29.12 ILS per hour or 5,300 ILS per month
Working hours
7-9 hours per day
Weekdays
Sunday to Thursday
Work hours per week
42 hours per week

Payroll

Cycle

Monthly

Avg employer tax

28.28%

Taxation

Tax breakdown - Employer
  • Social security (on the first 6,331 ILS): 3.55%
  • Social security (on the difference between 6,331 ILS to a maximum of 44,020 ILS): 7.60%        
  • Severance pay: 8.33%        
  • Pension fund: 6.50%
  • Disability insurance: 2.50%        
VAT

17%

Holidays / PTO

Public holidays
  • 16 Apr: Passover
  • 22 Apr: Seventh Day of Passover
  • 5 May: Independence Day
  • 5 Jun: Feast of Shavuot
  • 26 Sep to 27 Sep: Rosh Hashanah
  • 5 Oct: Yom Kippur
  • 10 Oct: First Day of Sukkot
  • 17 Oct: Simchat Torah

NB – these are estimated dates and are yet to be confirmed

Sick days

Each month, employees accrue 1.5 days of sick leave, up to a maximum of 90 days. Payments for sick days are dependent upon the amount of time that the employee is off for:

  • Day one of the sickness: no entitlement to pay
  • Days two and three: entitled to 50% pay
  • Day four onwards: entitled to 100% pay
  • Employees must provide proof of illness, in the form of certificates from a medical professional, following their return to work.
Maternity leave

After at least one year’s service with an employer, female employees are entitled to 26 weeks of maternity leave. Up to seven of those weeks may be taken before the birth. Of the 26 weeks, 15 are fully paid by the Israeli social security system; the remaining 11 weeks are unpaid. Employees who have been in their post for less than one year can take 15 weeks of maternity leave. Maternity leave can be extended by up to three weeks in the case of complicated or multiple births. If the child dies, the mother can take up to 60 days of unpaid maternity leave.

Paternity leave

Paid paternity leave covers the first five days after a child is born, with the payments for the first three days coming from accrued annual vacation leave, and the next two days from accrued sick leave. Further days of paternity leave can be taken if the equivalent number of days is subtracted from the mother’s maternity leave allowance.

Termination

Termination Process

The termination of any contract must be in accordance with applicable laws, the employment contract, relevant collective bargaining agreements, and workplace customs. Any such termination must also be in good faith and valid reasons must be offered for the decision.

Notice Period

If an employer wishes to terminate an employee’s contract, they are required to give written notice dependent on the employee’s length of service:

  • Employment of 6 months or under: 1 day of notice for each month of employment
  • Employment of between 6 months and 1 year: 2.5 days of notice for each month of employment
  • Employment of over 1 year: 30 days of notice

Employers may select to pay employees in lieu of notice, the payment being equivalent to their full salary for the notice period.

Severance Pay

Employers are required to make monthly contributions of 8.33% of an employee’s monthly salary to a fund that is payable upon termination of the contract (even if the employee resigns). Alternatively, severance pay for employees who have completed at least one year of service can be calculated as one month’s worth of salary multiplied by their number of years of service.

Probation Period

Probation periods are typically between one and twelve months.

Tax Calculation

*
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IL
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

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Israel

Currency
Israel shekel (ILS)
Payroll Frequency
Monthly
Employer Taxes
28.28%

About 

Israel

Israel is a country in western Asia, which defines itself as the nation-state of the Jewish people. It is bordered by Lebanon, Syria, Jordan, the Palestinian Territories, and Egypt and is considered to have the highest standard of living in the Middle East.

Overview

Population
9,416,160
Language
Hebrew
Capital
Jerusalem
Currency
Israel shekel (ILS)
Country code
+972
Min wage
29.12 ILS per hour or 5,300 ILS per month
Working hours
7-9 hours per day
Weekdays
Sunday to Thursday
Work hours per week
42 hours per week

Payroll

Cycle

Monthly

Avg employer tax

28.28%

Taxation

Tax breakdown - Employer
  • Social security (on the first 6,331 ILS): 3.55%
  • Social security (on the difference between 6,331 ILS to a maximum of 44,020 ILS): 7.60%        
  • Severance pay: 8.33%        
  • Pension fund: 6.50%
  • Disability insurance: 2.50%        
VAT

17%

Holidays / PTO

Public holidays
  • 16 Apr: Passover
  • 22 Apr: Seventh Day of Passover
  • 5 May: Independence Day
  • 5 Jun: Feast of Shavuot
  • 26 Sep to 27 Sep: Rosh Hashanah
  • 5 Oct: Yom Kippur
  • 10 Oct: First Day of Sukkot
  • 17 Oct: Simchat Torah

NB – these are estimated dates and are yet to be confirmed

Sick days

Each month, employees accrue 1.5 days of sick leave, up to a maximum of 90 days. Payments for sick days are dependent upon the amount of time that the employee is off for:

  • Day one of the sickness: no entitlement to pay
  • Days two and three: entitled to 50% pay
  • Day four onwards: entitled to 100% pay
  • Employees must provide proof of illness, in the form of certificates from a medical professional, following their return to work.
Maternity leave

After at least one year’s service with an employer, female employees are entitled to 26 weeks of maternity leave. Up to seven of those weeks may be taken before the birth. Of the 26 weeks, 15 are fully paid by the Israeli social security system; the remaining 11 weeks are unpaid. Employees who have been in their post for less than one year can take 15 weeks of maternity leave. Maternity leave can be extended by up to three weeks in the case of complicated or multiple births. If the child dies, the mother can take up to 60 days of unpaid maternity leave.

Paternity leave

Paid paternity leave covers the first five days after a child is born, with the payments for the first three days coming from accrued annual vacation leave, and the next two days from accrued sick leave. Further days of paternity leave can be taken if the equivalent number of days is subtracted from the mother’s maternity leave allowance.

Termination

Termination Process

The termination of any contract must be in accordance with applicable laws, the employment contract, relevant collective bargaining agreements, and workplace customs. Any such termination must also be in good faith and valid reasons must be offered for the decision.

Notice Period

If an employer wishes to terminate an employee’s contract, they are required to give written notice dependent on the employee’s length of service:

  • Employment of 6 months or under: 1 day of notice for each month of employment
  • Employment of between 6 months and 1 year: 2.5 days of notice for each month of employment
  • Employment of over 1 year: 30 days of notice

Employers may select to pay employees in lieu of notice, the payment being equivalent to their full salary for the notice period.

Severance Pay

Employers are required to make monthly contributions of 8.33% of an employee’s monthly salary to a fund that is payable upon termination of the contract (even if the employee resigns). Alternatively, severance pay for employees who have completed at least one year of service can be calculated as one month’s worth of salary multiplied by their number of years of service.

Probation Period

Probation periods are typically between one and twelve months.

Tax Calculation

*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
IL
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation