Middle East


Request Info
Employer of Record (EOR) in Israel

What you'll learn

  • Country Introduction
  • Employment Terms
  • Minimum Wage and Working Hours
  • Statutory Leave Laws
  • Termination Process
  • Additional Information
Israel Introduction

Israel is a country in the Middle East region and bordered by Lebanon, Syria, Jordan, Egypt, the West Bank, and the Gaza Strip. The country’s government is located in the proclaimed capital of Jerusalem (although both Israel and Palestine claim Jerusalem as their capital). Most countries maintain their embassies in Tel Aviv, and the city is considered the economic and technological center of the country. There are many holy sites within its borders, so Israel regularly receives visitors of the Abrahamic religions coming to see its rich history.

Employment Terms

The minimum wage in Israel is ILS 5,400 per month, and the standard workweek is Sunday to Thursday for 42 hours per week at 7-9 hours per day. Employees should receive at least 48 hours of rest per week (usually Friday and Saturday). It is illegal to ask an employee to work more than 12 hours a day or 16 hours of overtime per week.

Overtime is regulated by contracts/collective agreements, and is agreed upon by the employee and the employer before starting any overtime hours. Overtime is paid at between 125%-150% of the salary.

Types of Leave

Parental Leave

Pregnant employees are entitled to 26 weeks of paid maternity leave as long as they have worked at their company for 1 year. The employee can take up to 7 weeks before the due date and the remainder after the birth. The leave is paid for by social security for about 15 weeks of fully paid leave and 11 weeks of unpaid leave.

Spouses are also entitled to take the first 5 days after their child’s birth as paid leave, but the leave comes from their accrued annual vacation and their accrued sick leave.

Sick Leave

Employees in Israel can take sick leave which is accrued at a rate of 1.5 days per month, adding up to a maximum of 90 days total. The payment varies based on the duration of the leave:

  • 1st day of sick leave = unpaid
  • 2nd and 3rd days of sick leave = 50% paid
  • 4th day onwards = 100% paid

Paid Leave

There are 9 national holidays in Israel, and employees are entitled to at least 16 days of paid time off each year which adds up to more the longer that they work at their company (up to 28 days at 8 years). Employees can also receive leave for bereavement and military duty.

Termination Process


Employers are allowed to exercise their right to terminate an employee’s employment in good faith, in compliance with applicable law (such as employment contracts and collective bargaining agreements).

To start a termination process, the employer has to provide the employee a hearing invitation with the reasons for the intended termination. The hearing is conducted by the employee’s manager, and the employee gets an opportunity to express their viewpoint regarding the intention to terminate. After the hearing, the employer considers the arguments seriously and in good faith. The decision is then communicated in writing, preferable in person and within 48 hours of the hearing.

Notice Period

Employers must provide written notice when ending an employment contract. The employer can choose to give a payment in lieu of notice, which is equal to the salary payment the employee would have received if they worked throughout the notice period. The notice period is determined by the employee’s length of time at the company:

  • 0-6 months = 1 day of notice per month of employment
  • 6-12 months = 2.5 days of notice per month of employment
  • 1+ years = 30 days of notice

Severance Pay

Employees who have worked at least 1 year at their company and are being dismissed are entitled to severance pay. The payment is calculated as 1 month’s salary for each year of employment. This payment comes from the severance fund which the employer pays into at 8.33% of the salary per month, and the accrued amount is released to the employee upon termination.

Additional Information

While a 13th-month salary payment is not legally mandated, employees are entitled to a “Recreation Payment” after one year at their companies. The bonus is usually paid between July and September, and the amount depends on the number of years of employment.

Hebrew, Arabic, English
Israeli New Shekel (ILS)
Capital City:
9.5 Million
Cost of Living Rank:
VAT (Valued Added Tax):
Employer TaxES

★  8.3% - Severance Pay

★  6.5% - Pension Fund

★  5% - Bituach Leumi

★  7.5% - Keren Hishtalmut

Get Started in 3 Steps


Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.


Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.


Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 180+ countries
How Remofirst employs in Israel

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Israel get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Israel are paid on time in Israeli New Shekel (ILS). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Israel, they can speak with our customer support team to get answers from our team of experts.