Israel Payroll and Benefits Benchmark guide

8.33% - Severance Pay
10.95% - Social Security and Health Insurance
6.50% - Pension Fund
2.50% - Disability Insurance

15.50% - Social Security and Health Insurance
6.00% - Pension Fund
10.00% - Up to 6,220
14.00% - 6,220 - 8,920
20.00% - 8,920 - 14,320
31.00% - 14,320 - 19,990
35.00% - 19,990 - 41,410
47.00% - 41,410 - 53,333
50.00% - Over 53,333

Employers must provide their employees with at elast 30 days notice. Employers can offer payment in lieu of notice.

Advance notice for the first 6 months is 1 day of notice added for each month. After 6 months until the first year, 2.5 days of notice is added. After the first year, 30 days of notice is mandatory.

Employer is responsible for depositing 8.33% of the employee’s monthly salary into severance fund. Employee receives the severance payment at the time of termination.

The minimum wage is 5,300 NIS per month.

For a full time position of 5 days a week, an employee is entitled to 12 annual paid vacation days, during his first 5 years of employment.From the 6th year and on- the entitlement increases.

Employer is responsible for 0% of the compensation if the employee is sick for 1 day. If they are sick 2-3 days, employer is responsible for 50% of the salary and over 4 days, 100% of the salary. Employees receive 1.5 days for each month of the employment. Maximum is 90 days.

An employee who has worked 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)

No official regulation

Fathers can take days off after the birth of a child, but these days will be subtracted from the maternity leave.

Full time employment is considered 48 hours weekly.

Paid at 150%-200% of regular salary depending on hours worked.

17% standard rate.

Salaries are paid on monthly basis for work between the first and last day of the month by the 9th of the following month.

The employer contributes 6.5% for the pension fund and up to 2.5% for disability fund. The employee contributes contributes 6% for the pension fund.

The National Insurance Institute is responsible for the social security of the residents of Israel, and therefore guarantees basic subsistence to those unable to provide for themselves. Every resident of Israel is insured for healthcare under the National Health Insurance Law, through payment of monthly premiums to the National Insurance Institute (Bituach Leumi) for the share of income which is up to 60% of the average wage – NIS 5,678.