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Israel cityscape
Country Hiring Guide

Discover & Hire Top Talents in Israel

Everything you need to know about the country's employment laws, culture, and workforce insights.

Capital
Capital

Jerusalem UTC+2 to UTC+3

Economic Hubs
Economic Hubs

Tel Aviv, Jerusalem, Haifa

Currency
Currency

New Israeli Shekel (ILS)

Languages
Languages

Hebrew, Arabic, English

Payroll
Payroll

monthly

Employer Tax
Employer Tax

17.01% – 20.10%

Workforce Insights

Talent Landscape in Israel

IL

Israel has an estimated labor force of about 4.82 million (2025), with talent demand concentrated in cybersecurity, software, defence technology, life sciences and semiconductors. International employers are most likely to find relevant candidate pools for Cybersecurity, AI & Machine Learning, and Software Engineering. The market is well suited to focused hiring, while niche roles benefit from targeted sourcing and a clear employer value proposition. Competition for experienced professionals is typically strongest in technology intensive and regulated functions.

Major Economic Hubs

Tel Aviv, Jerusalem, Haifa

Skills In-Demand

Cybersecurity

Working Culture

Dugri Directness and Active Debate

Israeli workplace communication is often direct, candid and energetic, a style sometimes described as dugri. Employees may challenge ideas openly without intending disrespect, so leaders should focus on the substance of the argument rather than the formality of delivery.

Informal Access to Leaders

Hierarchies can be relatively flat in technology and entrepreneurial environments, with employees expecting access to decision makers. Managers gain respect through expertise, speed and willingness to engage rather than title alone.

Fast Experimentation and Improvisation

Teams often value initiative and rapid problem solving, especially when circumstances change. Clear priorities are important because employees may move quickly and debate the process while executing.

Average Salary

Job TitleAvg Monthly Salary (ILS)
Accounting & Finance
Administrative Executive, Junior (1-3 years)9,400 ILSS$12,784
Administrative Executive, Mid (3-5 years)12,500 ILSS$17,000
Book Keeper, Junior (1-3 years)8,400 ILSS$11,424
Book Keeper, Mid (3-5 years)11,400 ILSS$15,504
Finance Executive, Junior (1-3 years)10,800 ILSS$14,688
Finance Executive, Mid (3-5 years)14,200 ILSS$19,312
Creatives
Graphic Designer, Junior (1-3 years)10,800 ILSS$14,688
Graphic Designer, Mid (3-5 years)15,600 ILSS$21,216
UI/UX Designer, Junior (1-3 years)11,400 ILSS$15,504
UI/UX Designer, Mid (3-5 years)19,800 ILSS$26,928
Data Analytics
Data Analyst, Junior (1-3 years)15,600 ILSS$21,216
Data Analyst, Mid (3-5 years)20,400 ILSS$27,744
Data Engineering
Data Engineer, Junior (1-3 years)15,600 ILSS$21,216
Data Engineer, Mid (3-5 years)25,200 ILSS$34,272
AI & Machine Learning
Data Scientist, Junior (1-3 years)15,600 ILSS$21,216
Data Scientist, Mid (3-5 years)21,000 ILSS$28,560
Machine Learning Engineer, Junior (1-3 years)13,200 ILSS$17,952
Machine Learning Engineer, Mid (3-5 years)19,800 ILSS$26,928
Digital Marketing
Content Marketing, Junior (1-3 years)12,600 ILSS$17,136
Content Marketing, Mid (3-5 years)18,600 ILSS$25,296
Digital Marketing, Junior (1-3 years)12,600 ILSS$17,136
Digital Marketing, Mid (3-5 years)18,600 ILSS$25,296
Growth Marketing, Junior (1-3 years)13,200 ILSS$17,952
Growth Marketing, Mid (3-5 years)19,800 ILSS$26,928
Software Development
Backend Developer, Junior (1-3 years)16,200 ILSS$22,032
Backend Developer, Mid (3-5 years)24,000 ILSS$32,640
Job TitleAvg Monthly Salary (ILS)
DevOps
DevOps Engineer, Junior (1-3 years)15,600 ILSS$21,216
DevOps Engineer, Mid (3-5 years)21,000 ILSS$28,560
Site Reliability Engineer, Junior (1-3 years)15,600 ILSS$21,216
Site Reliability Engineer, Mid (3-5 years)22,200 ILSS$30,192
Customer Support
Customer Service Officer, Junior (1-3 years)7,800 ILSS$10,608
Customer Service Officer, Mid (3-5 years)10,200 ILSS$13,872
Customer Experience
Customer Success Manager, Junior (1-3 years)11,400 ILSS$15,504
Customer Success Manager, Mid (3-5 years)16,200 ILSS$22,032
HR Operations
HR Executive, Junior (1-3 years)10,200 ILSS$13,872
HR Executive, Mid (3-5 years)13,800 ILSS$18,768
FinTech
Blockchain Developer, Junior (1-3 years)12,600 ILSS$17,136
Blockchain Developer, Mid (3-5 years)18,600 ILSS$25,296
Payments Engineer, Junior (1-3 years)12,600 ILSS$17,136
Payments Engineer, Mid (3-5 years)16,800 ILSS$22,848
Cloud Computing
Cloud Engineer, Junior (1-3 years)14,400 ILSS$19,584
Cloud Engineer, Mid (3-5 years)21,000 ILSS$28,560
Hiring Guide

Hiring Guide in Israel

This guide highlights the fundamental rules employers must know to hire compliantly, covering pay structures, leave policies, termination procedures, and compliance requirements.

For details, browse the topics through the tabs below.

Payroll in Israel

Payroll Cycle

Monthly salary is generally due by the 9th day after the wage period, with payment commonly completed by the 10th.

Minimum Wage

A statutory national minimum wage applies, with monthly and hourly equivalents and possible age based rules.

Overtime Pay

- The standard workweek is generally 42 hours. Standard daily hours vary according to whether the workplace operates five or six days. - Overtime normally requires a permit and is subject to daily and weekly limits.

- First 2 overtime hours: Hourly Rate × 1.25 × Overtime Hours. - Additional overtime hours: Hourly Rate × 1.50 × Overtime Hours. - Weekly rest day: at least Hourly Rate × 1.50 × Hours Worked, plus compensatory rest where required.

Bonus

13th Month

Israel does not impose a general statutory 13th month salary on private sector employers. Private sector employees therefore have no automatic entitlement to an additional annual salary unless a binding employment contract, collective agreement, wage order, employer rule, or special sector law provides one.

No statutory private sector calculation applies. Where a binding instrument grants an annual bonus or 13th salary, the amount must be calculated under that instrument; there is no legal default that it equals 1 month of salary.

No private sector employee in Israel qualifies automatically under the general labour law. Eligibility is limited to employees expressly covered by the applicable contract, collective agreement, wage order, employer rule, or special sector provision. The general law does not prescribe a universal minimum service period, prorating method, payment deadline, or entitlement after resignation or dismissal for a 13th salary. Those points must be determined from the specific binding instrument. Statutory leave pay, severance, end of service benefits, profit sharing, and public sector payments are separate benefits and should not be recorded as private sector 13th month salary unless the local rule expressly treats them that way.

Employees Benefits

Types of BenefitDetails
Mandatory
Public healthcare or mandatory medical coverage in IsraelHealth protection in Israel is delivered through the medical or sickness branch of National Insurance Institute (Bituach Leumi) contributions. Employers must register employees who meet the scheme’s coverage tests and remit the required payroll contribution on the prescribed wage base. The programme commonly provides medical treatment and cash sickness or maternity benefits, while eligibility for dependants, expatriates and higher earners follows the local institution’s rules.
Work injury protection under National Insurance Institute (Bituach Leumi) contributionsIsrael requires employers to protect employees against accidents and occupational disease through the work injury component of National Insurance Institute (Bituach Leumi) contributions or a legally approved policy. The obligation includes premium or levy payment, accident reporting and cooperation with medical or disability assessments. Coverage is not replaced by a private medical plan.
National Insurance Institute (Bituach Leumi) contributionsEmployers in Israel must apply the contribution and registration rules for National Insurance Institute (Bituach Leumi) contributions. Payroll should separately identify the employer funded amount and any employee deduction, use the statutory contribution wage or ceiling, and retain evidence of enrolment. The exact branches covered are those listed in the scheme, which can include retirement, health, unemployment or employment injury protection.
Statutory termination or end of service entitlement in IsraelEmployees dismissed after at least one year generally qualify for severance equal to one month’s last salary for each year of service. Monthly deposits made under Section 14 arrangements can replace all or part of the employer’s severance liability when the statutory conditions are met.
Optional
Housing, relocation and remote work support in IsraelHousing, relocation and remote work support in Israel is normally contractual rather than statutory. The policy should identify covered costs, taxable benefit treatment, repayment conditions for early departure and whether the support is temporary or continues throughout the assignment.
Meal, commuting and business travel support in IsraelMeal, commuting and business travel support in Israel should be split between fixed cash allowances and reimbursements supported by receipts. That distinction determines whether the amount is taxable salary, exempt expense repayment or part of the contribution wage. The policy should state limits, eligible journeys and the treatment of remote work.
Supplementary private medical insurance in IsraelPrivate medical insurance in Israel should be designed around the gaps left by National Insurance Institute (Bituach Leumi) contributions. Employers commonly add faster outpatient access, private hospital treatment, dental, optical, mental health and dependant cover. The policy remains optional unless a visa, emirate, collective agreement or sector rule makes insurance compulsory, and any taxable benefit treatment should be processed through payroll.
Performance or profit sharing bonus in IsraelA performance or profit sharing bonus in Israel is optional unless promised by contract, collective agreement or an established plan. The rules should specify the performance period, measurable targets, proration for joiners and leavers, and treatment during protected leave. Payroll must apply local income tax and social contribution rules to the payment.

Taxes

Country Tax

Israel's country tax is known as Value-Added Tax (VAT) 18%

Individual Tax

Tax ComponentContribution Rate (%)Details
Taxable Income Adjustments
Main Deductions and AllowancesSee detailsHowever, to claim these deductions, employees generally must file annual personal Israeli tax returns, even if they are otherwise exempt from filing. To complement the tax deductions available to employees for education, only self-employed individuals may deduct payments made to approved education funds that are used for training or education in Israel (or for any purpose after six years).
Income Tax Structure
Non-Resident Employment IncomeUp to 50% including surtaxNonresidents are taxed on Israeli sourced employment income using the applicable individual rates, subject to treaty relief and limited credits.
Resident Tax RatesUp to 50% including surtaxIsrael applies Up to 50% including surtax to taxable employment income. The employee’s final liability depends on taxable pay, permitted deductions or credits, and any local surtaxes stated in the cited source.
Taxable & Exempt Components
Bonuses and Cash AllowancesGenerally taxable at marginal employment rateIn Israel, cash salary, commissions, performance bonuses, and recurring cash allowances are generally taxable employment income and subject to payroll withholding at the applicable marginal rate unless a specific statutory exemption applies.
Benefits in KindTaxable value at marginal rate where applicableIn Israel, employer provided housing, vehicles, meals, insurance, equity, and other noncash benefits may be taxable under local valuation rules. Business reimbursements and de minimis exemptions require local support.
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