Israel, Arabic Isrāʾīl, officially the State of Israel or Hebrew Medinat Yisraʾel, is a country in the Middle East, located at the eastern end of the Mediterranean Sea. Jerusalem is the seat of government and the proclaimed capital, although the latter status has not received wide international recognition. Jews constitute about three-fourths of the total population of Israel. Almost all the rest are Palestinian Arabs, of whom most (roughly three-fourths) are Muslim; the remaining Arabs are Christians and Druze. 

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Israel.

Capitale :
Jerusalem
Devise :
New Israeli Shekel (ILS, ₪)
Langues parlées :
Hebrew, Arabic, English
Nombre d'habitants :
9.36 million (2021 est.)
Salaire minimum :
ILS 5,300 Monthly
Index du coût de la vie :
$$$$ (7 of 139 countries)
Payroll Frequency :
Monthly
Taux normal de la TVA :
17%
Croissance réelle du PIB :
8.2% (2021 est.)

Statutory Holidays

The national holidays mentioned below are valid for the year 2022.

Date
Holiday Name
Extra Information
April 16
Pesach (Passover) 1st day
Movable - The 15th day of the Hebrew month of Nisan, the first month of Aviv, or spring.
April 22
Passover (Day 7)
Movable - The fourth day of the month of Iyar.
May 5
Israel Independence Day
Movable - The fifth day of Iyar in the Hebrew calendar
June 5
Feast of Shavout (Pentecost)
Movable - The 50th day, or seven weeks, after Passover.
August 7
Fast of Ninth of Av
Movable - The ninth day of the month of Av.
September 26-27
Rosh Hashanah (New Year) 1st and 2nd Day
Movable - The first and second days of the seventh month of the Jewish religious year.
October 5
Yom Kippur (Atonement Day)
Movable - The 10th day of Tishrei, the seventh month.
October 10
Succot 1st day
Movable - The 15th day of the month of Tishri.
October 17
Simhat Torah (Shemini Atzeret)
Movable - The 22nd day of the month of Tishri.

Contract Sharing Time


The approximate time for sharing the contract with an employee in Israel is 7 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know


  • Severance pay is given to every employee (who has completed a year of service) who is fired, regardless of the reason for the dismissal unless ordered by the Labor Court in very rare cases.
  • Though the law provides for severance pay after completion of a year in employment, a legal contradiction exists as the employer can be held legally liable by a Labor Court if they fire an employee at 11 months. This contradiction exists as, in the past, the Courts have found employers guilty of trying to evade the payment of severance pay.
  • A statutory convalescence allowance is paid to all employees who have completed a year of employment in a single annual payment.
  • A workweek in Israel is from Sunday to Thursday.

Labor Conditions


Working Hours

A working day should not exceed eight working hours. A working week should not exceed 42 working hours. The working day should not exceed seven working hours in night work on the day preceding the weekly rest and on the day preceding a festival on which an employee is not employed, whether by law or by agreement or custom. 

 

Overtime

The total overtime of the employee during the whole week must not exceed 16 hours, and in any case, an employee may not be employed for more than 12 hours a day (including overtime). As a rule, it is forbidden to make an employee work overtime without a permit from the Minister of Labor. An employer should pay an employee who is employed for over-time hours a wage not less than 1¼ times the ordinary wage for the first two over-time hours in any one day, and not less than 1½ times the ordinary wage for all subsequent over-time hours.

 

Probation Period

Labor legislation does not regulate trial periods. Most collective agreements have trial periods ranging from six months to three years. The most common length of trial periods in collective agreements is six-24 months.

Employers have the power to extend trial periods under certain circumstances. However, even dismissals within the trial period must be fair and just and on a basis of reasonable discretion by the employer. This interpretation is an outcome of the Labor Courts’ decisions.

Termination Notice Period

The termination notice periods depend on length of employment service as follows:

Employment ServiceNotice for Monthly Salaried WorkersNotice for Daily or Hourly Workers
Less than 6 months1 day per month of service1 day per month of service
6 to 12 months6 days plus 2.5 days per month of service beyond 6 months1 day per month of service
More than 1 year1 month
  • 2nd Year: 14 days plus 1 day for every 2 months of service beyond the first year.
  • 3rd year: 21 days plus a day for every 2 months of service beyond the first 2 years;
  • More than 3 years: 1 month

Leave / Time Off

Annual Leave

An employee whose workplace has a five-day workweek is entitled to five days of absence from work for every seven days of vacation accrued by law. An employee who has a six-day workweek at their place of work is entitled to six days of absence from work for every seven days of leave accrued by law.

The length of vacation for each year of employment for five-day workweek employees is:

Employment DurationAnnual Leave

(Gross including Fridays and Saturdays)

For each of the first 5 years16 days
For the 6th to 8th year23 days
For the 9th and more years31 days

Sick Leave

A worker is entitled to 1.5 Sick Days for every month that they work (up to 18 days per year), provided they have a doctor’s written note. Employees can accumulate up to 90 sick days.

According to the Sick Pay Law:

  • There is no payment for the first sick day;
  • For the second day and the third day of absence, the worker is entitled to receive 50% of the regular salary that they would have been entitled to if they had been at work from the employer;
  • From the fourth day onwards, the worker is entitled to 100% of the salary they would have received if they had worked from the employer.

Parental Leave

Men or women undergoing fertility treatments are entitled to be absent from work at the expense of their sick days. Employees can miss individual hours instead of a full day of work, up to a cap of 40 hours a year (relative to the hours worked), and in this case, they get sick pay from the first hour missed. 

 

Unpaid Parental Leave

Intended parents are entitled to unpaid leave after maternity leave. The benefit is given to one of the two parents of their choice. The maximum length of leave is a quarter of the period during which the parent worked at the same workplace and not more than a year after the birth of the child. Further, an employee whose spouse has given birth and been hospitalized for at least 15 days may be absent from work for up to four weeks during the period of hospitalization on unpaid leave. The employee may be absent from work only if his spouse has chosen to split the maternity leave due to hospitalization.

 

Maternity Leave

An employee who has worked consecutively for at least one year for an employer or in the same place of employment is entitled to a maternity leave of 26 weeks (only part of which is paid). Employees who have worked less than 12 months for the same employer are entitled to 15 weeks of maternity leave (some or all of which is paid, in accordance with the conditions for eligibility for a maternity allowance).

An employee’s entitlement to receive a maternity allowance during maternity leave is determined on the basis of the period for which she made National Insurance payments.

Period of Payment of Maternity AllowancePeriod that National Insurance Contributions were Paid
15 weeksIf the mother paid National Insurance contributions for 10 of the 14 months that preceded stopping to work, or 15 of the 22 months that preceded her stopping to work.
8 weeksIf the mother paid National Insurance contributions for 6 of the 14 months that preceded her stopping to work.

 

Paternity Leave

An employee whose spouse has a child may be absent from work without obtaining the consent of the employer, up to five calendar days after the day of birth. The first three days of absence from work are considered as annual leave. These days are deducted from the quota of annual vacation days, and the employee is entitled to vacation pay (full pay) for them. If the employee does not have enough accumulated vacation days, the absence is considered an unpaid vacation.

 

Adoption Leave

An employee who has adopted a child over the age of 10 after working for at least 12 months for the same employer or at the same workplace is entitled to maternity leave (period of birth and parenthood) of 26 weeks.

During the leave the employee is not entitled to a wage payment, but they may be entitled to an adoption fee for 15 weeks from the National Insurance Institute, depending on the conditions.

Other Types of Paid Leave

The number of convalescence days is calculated according to the seniority accumulated by the employee in the workplace. The following table lists the number of convalescence days paid by the employer for employees in the private sector:

Years of Seniority of the EmployeeNumber of Convalescence Days
1st year5 days
2 to 3 years6 days
4 to 10 years7 days
11 to 15 years8 days
16 to 19 years9 days
Year 20 onwards10 days

An employee is entitled to a convalescence allowance only after completing their first year of work in the workplace. The convalescence allowance is calculated according to the employee’s seniority in the workplace, according to the scope of their job, and according to the duration of their employment in that year.

 

Mourning Leave

Workers of all religions are entitled to the payment of their wages if they were absent from work due to days of mourning for a first-degree relative. This leave is granted for no more than seven calendar days (i.e. days including weekly rest days). Eligibility is recognized provided that the employee has worked for at least three months in the workplace. 

 

Election Day

Employers should pay a full day’s salary for any employee working at least 14 days prior to election day. Employers may give employees a choice to either work or take the day off.

If the employee agrees to work on election day, the employer must either pay:

  • 200% of the salary on election day (in case of full day work);
  • 100% of the salary in addition to vacation hours equivalent to the number of the employee’s working hours on election day (in case of partial day work);
  • 100% of the salary in addition to salary hours equivalent to the number of the employee’s working hours on election day (in case of partial day work).

Unpaid Leave

An employee may, with the consent of the employer, go on unpaid leave without the employment relationship being severed. The duration of the unpaid leave is in accordance with the agreement of the parties. 

Unpaid Leave for Victims of Domestic Violence

An employee with at least six consecutive months of experience in the workplace staying in a shelter for women victims of violence is entitled to be absent from work for up to six months out of the 12 months following the beginning of her stay in the shelter. The employee’s period of absence from work is considered as unpaid leave, which is not taken into account when calculating seniority-dependent rights.

Statutory Benefits

The National Insurance Institute provides services and information on pregnancy and childbirth, disabilities, injuries and illness, children, the elderly, and termination of employment. 

Rates of National Insurance contributions and health insurance contributions for resident employees:

CategoryFrom the Wage Division up to 60% of

the Average Wage – (reduced rate) –  ILS 6,331.

National Insurance Contributions*3.55%
Health Insurance PremiumsNot paid
Pension Insurance**12.5%
Disability Insurance2.5%

*From the salary portion above 60% of the average salary to the maximum income that is subject to insurance premiums (Full Rate), a contribution of 7.6% is paid by the employer to a maximum limit of ILS 45,075.

**6.5% goes towards benefits and 6% towards compensation.

Health Insurance

The employer does not pay for health insurance. On the part of the salary up to 60% of the average salary ILS 6,331 as of 2022), only the employee pays health insurance premiums at a rate of 3.10%. On the part of the salary that is above 60% of the average salary up to the maximum income per month that is subject to insurance premiums (ILS 45,075 as of 2022), the health insurance premium is paid at the rate of 5.00% by the employee.

Other Insurances

Accident Insurance

 

Insured persons who have been injured in a work accident or occupational disease or microtrauma injury, and are unable to work according to a medical certificate, are entitled to injury benefits as compensation for the loss of wages or income. The injury allowance is paid for the period of time during which the injured have not worked, and for a maximum period of 13 weeks the day after the injury (which is 91 days including Saturdays and holidays). The injury fee cannot exceed ILS 1,114.38 per day. For the day of the injury, no injury allowance is paid by the National Insurance Institute, however, the employer pays the wages of the employees for this day

Insured persons with work injury insurance are entitled in the event of an injury to work to receive free medical treatment following the injury. The scope of medical treatment to be given to the work injury victim is determined by the HMO (Health maintenance organizations) doctor.

 

Unemployment Insurance

 

Beneficiaries who have worked as employees for 12 months out of the last 18 months before registration with the Employment Bureau, have registered with the Employment Bureau as required, and filed a claim, are eligible for unemployment benefits. The age of entitlement for unemployment benefits is between 20 and 67 years. If the employee received unemployment benefits in the 11 months prior to the start of their first required job, they are paid a reduced rate grant. A person who has filed a claim for unemployment benefits is not paid for the first five days of unemployment in all four consecutive months of registration with the employment service.

Public Pension

The retirement age is 67 years for men and 62 years for women. According to the Retirement Age Law, the mandatory retirement age from work in Israel is 67 for women and men. Subject to legal arrangements provided by law, collective bargaining agreements, or individual agreements – it is sometimes possible to continue working beyond the mandatory retirement age. 

Every employee who has reached the age of 21 and an employee who has reached the age of 20 are entitled to provisions for pension insurance (pension fund, provident fund, or executive insurance). The contribution rate is 18.5%, of which 6% is at the expense of the employee and the employer pays 12.5%.

Other Statutory Benefits

Maternity Grant

A woman (or adoptive parents) who gives birth is entitled to a maternity grant from the National Insurance Institute regardless of her work status. The hospital lodges the claim to the Institute.

 

Child Allowance

Families living in Israel receive a monthly allowance to assist in covering expenses associated with raising children under the age of 18. The child allowance amount is calculated according to the number of children in the family, their birth dates, and the entitlement of one of the parents to subsistence benefits from the National Insurance Institute.

Death Grant

In the event of the death of a person who received an old-age pension from the National Insurance Institute, their survivors are entitled to a one-time death grant. The death grant is ILS 9,129, as of 2022.

 

Survivors’ Pension

Survivors’ pension is intended to ensure a means of subsistence for the survivors – widows, widowers, and orphans, of the deceased residents of Israel. The pension is paid by the National Insurance Institute to all Israeli residents who were insured. If the insurance requirements are not met, a one-time grant of 36 months’ survivors’ monthly benefits is paid.

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

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