New Israeli Sheqel (ILS)
Hebrew and Arabic
Cost of Living
(US 69.92)
Time (UTC)
UTC +2
Parliamentary Democracy

Hire in Israel without an entity and fully compliant with local labor laws

Israel is often referred to as the start-up nation because its incubator-like culture encourages new technology, science, and research firms. The Organization for Economic Cooperation and Development (OECD) placed Israel as the third most educated country worldwide, after Canada and Japan. Approximately 85% of Israelis speak English and this small country on the Mediterranean Sea's eastern shore combines a rich pre-biblical history with ultra-modern skyscrapers and ground-breaking innovation. 

Israel is 15 hours from Los Angeles and approximately 88% the size of Maryland.

Get to know Israel

Israel is known as Western Asia's most developed country due largely to its strong economy, modern infrastructure, and 88% of citizens having advanced degrees. Israel has also drawn comparisons to Silicon Valley for cutting-edge technology in software, communications, and the biological sciences. Major exports include cut diamonds, pharmaceuticals, and high-technology equipment. 

Israel's also home to some of the world's holiest religious sites, which, combined with the Mediterranean climate (only about 20 inches of rain annually!) and historical monuments, attract global tourists year-round. As do the 137 beautiful beaches. The residents' cultural diversity inspires world-class restaurants, museums, music, and theater. The equally diverse topography appeals to adventure enthusiasts seeking everything from climbing snow-peaked mountains in the north to camel treks at the southern tip of the country. 

The World Bank classifies Israel as a high-income economy with the following trade agreements and alliances: 

  • Mashrek
  • OECD
  • UN - United Nations
  • WTO - World Trade Organization

“Must know” if you’re hiring in Israel without an employer of record

Entity requirements
Mandatory hiring contracts & clauses
Different compliance risks for full-time vs. contractor employees
Mandatory probationary periods
Allowable working hours & overtime wage laws
Timecard and attendance records
Required employer payroll, labor insurance, and tax payments
Discrimination protection
Notices & termination regulations

Budgeting for Israeli employees

Hiring remote Israeli professionals is smart and economical, assuming you’re fully compliant with local tax, labor, and wage laws.
Employee Classification–Full-time vs Contractor

Full-time employees

  • Work under written or verbal contracts 
  • Entitled to benefits and paid overtime


  • Hired for a limited period or a specific project
  • No employee benefits & no paid vacations 
  • Not entitled to severance pay
Employment Contracts

Employers are required to give each employee notice of the following employment information and terms:

  • Employer and employee name, address, and identification information
  • Employment start date
  • Term of employment
  • Position and duties description
  • Supervisor information
  • Salary
  • Working hours per day and per week
  • Rest day
  • Social benefits and payments
Probation Period

Stipulated in the employment contract or a collective agreement

Standard Working Hours & Overtime
  • Seven-nine hours per day
  • The work week begins on Sunday
  • 42 hours per week
Payroll Frequency


Wages & Bonuses
  • Minimum monthly wage = $1527.67
  • Minimum hourly wage = $8.39
  • 13th-month pay
  • Holiday gifts

USD equivalent median salaries

  • Data Scientist - $62,501 USD
  • Electrical Engineer - $78,139 USD
  • Hardware Engineer - $69,519 USD
  • IT Manager - $62,941 USD
  • Mobile Developer - $51,311 USD
  • Product Manager - $67,878 USD
  • Project Manager - $43,251 USD
  • QA Engineer - $24,599 USD
  • Software Engineer - $73,475 USD
  • System Administrator - $62,194 USD
  • UX Designer - $65,328 USD
  • Web Developer - $52,399 USD
Payroll Taxes & Employer Contributions

Employer Contributions

  • 3.55% - 7.60% Social Security
  • 8.33% Severance Pay
  • 6.5% Pension Fund
  • 2.5% Disability Insurance

Employee Contributions

  • 0.4% - 7% Social Security
  • 3.1% - 5% Health Insurance
  • 6% Pension Fund
  • 10% - 50% Income Tax

National Health Insurance (NHI) 

  • Universal coverage for citizens and permanent residents
  • Funded primarily through an earmarked, income-related health tax

Paid leave


  • 14 weeks = 100% salary
  • 12 weeks = unpaid


  • Three - five days

Vacation/PTO days

  • Five years = 16 days annual leave
  • Six years = 18 days annual leave
  • Seven years = 21 days annual leave
  • Number of vacation days goes up by 2 per year after 4 years of employment

Sick Days

Additional Leave

  • 1.5 days per month
  • 90 days per year

Additional Benefits

  • Cell phone allowance
  • Meal allowance
  • Vouchers
  • Study fund


Israel celebrates nine national (public) holidays and multiple observances a year. Some have fixed-dates set on the Gregorian calendar and others are based on the Lunar calendar and thus observed on different dates each year. 


The most important Lunar calendar holidays are:

  • Rosh Hashanah (New Year, Fall)
  • Yom Kippur (Day of Atonement, Fall)
  • Sukkot (Fall)
  • Purim (Spring)
Termination & Severance

Employers are required to provide a written document outlining the reason(s) for their intention to terminate an employee, and an invitation to a hearing

Notice Period

  • Zero-six months = 1 day notice
  • Six - 12 months = 2.5 days notice
  • 12 months = 30 days' notice

Severance Pay

  • 12 months of service = one month's salary each year of service

A few fun facts about Israel

  • Israel boasts more than 30 commercial wineries and 200+ boutique wineries. 
  • On their birthdays, young children sit in a decorated chair while their parents raise them in the air one time for each year plus an extra lift for good luck.
  • The lowest point on earth, the Dead Sea, is 1,315 feet below sea level and less than 15 minutes from the highest point in Israel, Masada, a mountain 1,424 ft above sea level! 
  • The oldest tree in Israel is a jujube tree estimated to be between 1,500-2,000 
  • Israel has an Olympic bobsled team, even though more than half of they country is desert.
  • There are more museums per capita than any other country in the world, including one underwater.

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