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Current Region & Language
Current Region & Language
Currency
Israeli New Shekel (ILS)
Employer Taxes
Approximately 7.5% of gross salaries for social security contributions.
Payroll Frequency
Monthly
Language
Hebrew, Arabic
Date Format
DD/MM/YYYY
Israel By The Numbers
9.5 million
Population
ILS 600 billion
GDP
8
National Holidays
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Weekly Working Hours
National Holidays
Leave
Employees are entitled to various types of leave, including holiday leave, public holidays, sick days, paternity leave, parental leave, bereavement leave (in the event of the death of a family member), and remembrance leave. The specific entitlements may vary depending on local laws, company policies, and employment agreements.
Employment Contracts
Yes, for labor leasing contracts, it is required that certain terms be provided in writing. While verbal agreements are allowed for other types of work contracts, having written terms for labor leasing contracts ensures transparency and protects workers’ rights. This practice helps to clarify expectations, responsibilities, and conditions for both employers and employees.
Types of Employment
Employees, temporary agency workers, and independent contractors are all recognized types of employment.
Employment Costs
There are no specific requirements regarding employment costs.
IC Class Factors
The Israel courts’ favored approach is the ‘mixed test’ under which a variety of factors are considered. The most important of these factors takes the form of what is known as the ‘integration test’, which has two aspects: (1) positive aspect: integration of the worker into the employer’s business; (2) negative aspect: worker carries out an independent enterprise on his/her own.
Labor Leasing
The placement of contingent or temporary workers at third party sites requires a labor leasing license.
Minimum Wage Requirements
Since April 2024 the monthly minimum wage increased to NIS 5,880. The minimum wage for hourly employees is NIS 32.3 (according to the calculation of 182 working hours per month).
Medical Benefits
Employees are entitled to 1.5 days of paid sick leave per month, up to a maximum of 90 days. Sick leave pay is structured as follows: there is no pay for the first day of absence, 50% of salary for the second and third consecutive days, and 100% of salary from the fourth consecutive day onward. In certain industries, such as the hi-tech sector, employees receive 100% of their salary from the first day of absence. Employees can also use sick leave to care for close relatives, subject to specific limitations and caps set by law.
Probationary Periods
Yes, probation periods are allowed in Israel and are commonly included in employment contracts. The length of the probation period is typically specified in the employment contract. It can vary, but it generally ranges from one to several months. However, the maximum duration is not explicitly set by law, meaning it should be reasonable and agreed upon by both parties.
Termination Notice
Under the Prior Notice before Termination Law-2001, termination or resignation notice must be given in writing.
No notice is required for ending a fixed-term contract.
For monthly employees, the minimum notice is 1 day per month of employment for the first 6 months, 2.5 days for each additional month, and 1 month’s notice after one year of service.
For non-monthly employees, notice starts at 1 day per month during the first year, increases to 14 days in the second year plus 1 day for every 2 months of service, and 21 days in the third year plus 1 day for every 2 months, with 1 month’s notice after three years.
Longer notice periods can be agreed upon in employment contracts.
Employers can either require employees to work during the notice period or end employment immediately and pay the employee in lieu of notice, calculated based on salary only, unless otherwise specified in an agreement.
Severance
Employees who are terminated after completing one year of service are entitled to a statutory severance pay up to one month’s salary for each year of employment. If Section 14 Arrangement is applied by the parties, employers are required to make monthly contributions equal to 8.33% of the employee’s salary toward their severance pay which will be released to the employee upon termination and even if they resign under circumstances that would not typically entitle them to severance pay.
Pre-hire Checks
Employers in Israel can conduct background checks on candidates before hiring, but these must comply with legal standards, including respect for dignity, privacy, and non-discrimination.
Background checks must be relevant to the job, and their appropriateness should be evaluated on a case-by-case basis.
While privacy is a fundamental right, courts recognize the need to balance it against an employer’s legitimate interests, adhering to principles of good faith, relevance, reasonableness, and proportionality.
Employers can request academic and educational certifications, but these must be relevant to the position.
Under the Credit Information Law, employers cannot request or access a candidate’s credit data for employment purposes.
Employers may ask for work history, and if the candidate consents, they waive their privacy rights regarding this information, provided it is relevant to the job.
The Criminal Information Law prohibits employers from asking for or considering criminal records in employment decisions. Candidates are not obliged to disclose such information if not legally required.
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Legal Disclaimer
The information provided on this website is for general informational purposes only and is subject to change without notice. The content on this website is not intended to be a substitute for professional legal advice, diagnosis, or treatment. While we strive to keep the information up to date and accurate, People 2.0 makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
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