Capital
Jerusalem
Population
9.5 million
Languages
Hebrew
Timezone
UTC +2
Work week
42 hours
Employer taxes
up to 23%
Currency
Israeli New Shekel (ILS)
Payroll cycle
monthly
EMBAUCHEZ N'IMPORTE OÙ
Embauchez des employés à l'étranger sans créer d'entités juridiques
Embauchez, gérez et payez des freelances dans le monde entier
PAYEZ PARTOUT
Consolidation de la paie à l'international
Standardisez vos opérations de paie dans tous vos pays
Services de paie internationale
Externalisez votre gestion de paie multi-pays
Payez votre équipe dans le monde entier
Devenez un partenaire
Rejoignez notre réseau de partenaires de paie locaux
X
Devenez un partenaire affilié de Lano et commencez à toucher des commissions
Découvrez l'écosystème d'intégrations et de partenaires de Lano
Découvrez comment Lano peut vous aider à développer et à payer votre équipe internationale.
EMPLOI MONDIAL
Recrutez les meilleurs talents n'importe où
Recrutez des employés dans des pays où vous n'avez pas d'entité légale
Se développer à l'international
Testez de nouveaux marchés sans les risques ou les coûts de l'ouverture d'entités locales.
Délocalisez et fidélisez vos employés
Conservez les talents qui partent vers d'autres pays
Transformez les freelances en employés
Incorporez des freelances à temps plein en conformité
PAIEMENTS GLOBAUX
Consolidez la paie à niveau mondial
Gérez les salaires de vos entités et de vos prestataires en un même endroit.
Créer un service de paie dans de nouveaux pays
Mise en place et gestion de la paie en toute conformité dans n'importe quel pays
Changez de prestataire de paie local
Remplacez les prestataires peu performants par des partenaires de Lano.
Effectuez des paiements internationaux
Payez votre personnel en devises locales
TÉMOIGNAGES
Découvrez comment PrestaShop s'est étendu dans quatre pays en à peine six mois grâce à Lano.
RESSOURCES
Tout ce que vous devez savoir pour embaucher des personnes dans le monde entier
Apprenez les meilleures pratiques pour gérer la paie à l'échelle mondiale
Tout ce que vous devez savoir pour embaucher des personnes dans le monde entier
Couverture de paiements de Lano
Comparez les coûts de paiement à l'échelle mondiale avec Lano
FORMATION
Apprenez à utiliser et à profiter au maximum de Lano
Restez informé de l'actualité de Lano, de son contenu et de plus de choses
Parcourez notre glossaire de termes relatifs à la paie et aux ressources humaines
Learn all you need to know about global payroll and hiring
Devenez un expert en recrutement et en gestion de la paie mondial
Gain insights into how much it costs to hire remotely in a country
Tarifs
EMBAUCHEZ N'IMPORTE OÙ
PAYEZ PARTOUT
Devenez un partenaire
EMPLOI MONDIAL
PAIEMENTS GLOBAUX
RESSOURCES
Tarifs
English
Français
Deutsch
Español
Disclaimer
This country guide is for general informational purposes only and should not be construed as legal advice, nor as binding based on your relationship with Lano. When using Lano's solutions, the specifics may depend on your EOR and Payroll setup with our partners. Although we update this guide regularly, it may not reflect current legal developments. Lano Software GmbH disclaims any liability for any actions you take or refrain from taking based on the content contained in this country guide.
The 2020 Ease of Doing Business Index published by the World Bank has ranked Israel as the 35th most business-friendly country in the world. Among the aspects taken into account by the index, Israel particularly stands out with regard to the ease of starting a business and paying taxes.
What’s more, Israel has been found to be the country with the highest R&D expenditure in the world, and its creative, highly skilled workforce offer multinational organizations an attractive talent pool. The fact that English is widely spoken makes it even easier to hire employees in Israel.
There is no legal obligation to conclude a written employment contract when hiring employees in Israel – unless the employed person is a foreigner. However, employers are obligated to provide their employees with a written statement detailing the terms of employment, including:
Identification of both parties
Date of commencement (and employment duration if applicable)
Direct supervisor
Job description, duties and responsibilities
Basic salary as well as other compensation or benefits
Daily and weekly working hours
Weekly rest day
Social benefits
Pension fund details
Reference to applicable collective agreements
The only existing language requirement for contracts is that they must be in a language both employee and employer understand.
It is possible to define a probationary period for a new employee. The common length for probation periods is 3 months. In no case should the trial period exceed 12 months.
Get expert guidance from the Lano team to compare your options and keep growing.
A normal workweek in Israel comprises 42 hours. Employees usually work from Sunday to Thursday. A regular workday should not be longer than 9 hours.
Any hour worked by an employee in addition to his or her regular weekly working hours is considered overtime and must be compensated accordingly. The pay rate for overtime is 125% for the first two additional hours and 150% for any hour thereafter. Under no circumstances should employees work for more than 12 hours per day, including overtime. Overtime further shouldn’t exceed 16 hours per week.
The payroll cycle in Israel is generally monthly.
In April 2022, Israel’s national minimum wage rose from ILS 5,300 to ILS 5,400 per month. The hourly minimum wage is ILS 29.67. The local government has further announced to gradually increase the minimum wage over the course of the next couple of years until it will reach ILS 6,000 in December 2025.
Employees in Israel accrue 1.5 days of paid sick leave for each month worked, up to a maximum of 90 days. The first day of sick leave is unpaid and it’s only with the second day of absence that the employee’s sick leave entitlement starts.
Days two and three of sick leave are paid at a rate of 50% of the employee’s usual wages. From the fourth day onwards, the employee receives full pay. It is mandatory for employees to provide a medical certificate.
There are no legal provisions for a 13th month salary as such, but employees are entitled to a so-called “recreation payment” after having completed one year of service. The amount of the recreation payment depends on the employee’s length of service and the payment is usually made in two installments, one in spring and one in fall.
Employees and employers in Israel are subject to the following tax and social security contribution rates (last review February 2023):
Employers
23%
23% corporate tax rate
17% VAT (standard rate
Employees
up to 50%
Income is taxed based on progressive rates ranging from 10% to 50%. *
Employers
up to around 23%
National Insurance at rates of 3.55% (on the first ILS 7,122 earned per month) and 7.6% (on the part of the income between ILS 7,122 and ILS 47,465) **
Pension Fund at a rate of 6.5%
Severance Pay Fund at a rate of 8.33%
Disability insurance at a rate of 2.5%
Employees
up to around 18%
National Insurance at rates of 0.4% (on the first ILS 7,122 earned per month) and 7% (on the part of the income between ILS 7,122 and ILS 47,465) **
Health Insurance at rates of 3.1%(on the first ILS 7,122 earned per month) and 5% (on the part of the income between ILS 7,122 and ILS 47,465) ***
Pension Fund at rate of 6%
* Read more
Tax rates are progressive. The following tax rates and brackets apply:
Up to ILS 81,480: 10%
ILS 81,480 – ILS 116,760: 14%
ILS 116,760 – ILS 187,440: 20%
ILS 187,440 – ILS 260,520: 31%
ILS 260,520 – ILS 542,160: 35%
ILS 542,160 – ILS 698,280: 47%
Above ILS 698,280: 50% (incl. surtax)
It should be noted that the surtax doesn’t apply to all types of income.
** Different contribution rates apply to non-resident employees.
*** Non-resident employees are not subject to health insurance contributions.
Ce guide de pays est destiné à des fins d'information uniquement et ne doit pas être interprété comme un conseil juridique. Le contenu de ce guide contient des informations générales et malgré le fait que nous le mettions à jour régulièrement, il peut ne pas correspondre aux développements juridiques actuels. Lano Software GmbH décline toute responsabilité concernant les actions que vous entreprenez ou vous abstenez d'entreprendre sur la base du contenu de ce guide de pays.
During the first five years of service, employees are entitled to 12 paid vacation days. Thereafter, the employee’s annual leave entitlement gradually increases as follows:
6th year of service: 14 vacation days
7th year of service: 15 vacation days
8th year of service: 16 vacation days
9th year of service: 17 vacation days
10th year of service: 18 vacation days
11th year of service: 19 vacation days
Starting with the 12th year of service: 20 vacation days (i.e. four weeks)
In addition, Israel observes 9 national public holidays. Some districts have additional local holidays.
Female employees who have worked for their current employer for more than one year are entitled to 26 weeks of maternity leave. Employees who become pregnant during their first year of service are only entitled to 15 weeks of maternity leave. The leave period can start up to 7 weeks before the expected date of birth.
Maternity leave is only partly paid and the number of weeks during which the employee receives a maternity allowance depends on her previous social security contributions. Depending on the employee’s contributions history, either 8 or 15 weeks of maternity leave will be paid.
According to the current rules and regulations, fathers can take 5 days of leave immediately after birth, which are taken out of the father’s accrued annual leave and sick leave entitlement. Furthermore, fathers are allowed to share their partner’s maternity leave; however, this reduces the number of weeks the mother gets to spend with the baby.
A new law is expected to enter into force in 2023 which will give fathers the right to go on paid paternity leave as early as 15 weeks after birth – without it affecting the duration of the mother’s maternity leave.
There are no legal provisions for any additional parental leave.
Employees who have lost a spouse or an immediate member of their family are entitled to up to 7 days of paid bereavement leave. Some employers also offer their employees additional disability insurance, meal and transport allowances or make a monthly 7.5% contribution to a separate study fund.
Employers are allowed to dismiss their employees at any time for a reason other than discrimination. However, the employee must receive the chance to defend him- or herself in a proper hearing before the final decision is taken. The final decision must be communicated to the dismissed employee in writing.
Statutory notice periods can reach up to 30 days, depending on the employee’s length of service. The length of the notice period increases as shown in the following table.
Length of Service
Minimum Notice Period
Employees who are dismissed are entitled to severance pay if they have completed more than one year of service. The amount of severance pay must equal one month’s salary for each year of service. For this purpose, employers are obligated to set aside an amount equal to 8.33% of the employee’s earnings each month and pay it into a separate Severance Pay Fund (see section “Taxes and social security contribution”).
Ce guide de pays est destiné à des fins d'information uniquement et ne doit pas être interprété comme un conseil juridique. Le contenu de ce guide contient des informations générales et malgré le fait que nous le mettions à jour régulièrement, il peut ne pas correspondre aux développements juridiques actuels. Lano Software GmbH décline toute responsabilité concernant les actions que vous entreprenez ou vous abstenez d'entreprendre sur la base du contenu de ce guide de pays.
Des contrats conformes jusqu’à l’onboarding, tout ce qu’il vous faut pour constituer la meilleure équipe du monde.
Obtenez des conseils pour développer des entreprises à l'échelle mondiale. Rejoignez dès maintenant plus de 50 000 inscrits!
© Lano Software GmbH 2024
English
Français
Deutsch
Español