Currency: NIS, Israeli Shekel (Rate)
Public Holidays: 8 public holidays (see here)
Employer Taxes: 28.28% of gross salary
Official Language: Hebrew
Payroll frequency: Monthly
The length of the notice period depends on the length of the employee's service, with a maximum of 30 days.
The employer can choose to make a payment to the employee in lieu of having them serve out the notice period.
An employer can only terminate an employee after a hearing, following which they must provide the employee with written notice.
Severance pay can depend on whether the employer has been contributing to severance pay fund and on the number of years of service. This pay can be equal to one month's salary for each year of service.
However, employers that make monthly contributions equivalent to 8.33% of the employee’s monthly salary towards a severance pay fund do not need to pay serverance separately. The accrued amount from this fund is released to the employee upon termination.
Between one and 12 months depending on the employment contract.
NIS 29.12 per hour
Non-compete agreements must be clear and limited in scope and time. Agreements that involve compensation from the employer after the end of employment and throughout the non-compete period are more likely to be legally enforceable.
42 hours per week. The workweek is Sunday to Thursday.
The first two hours of overtime are paid at a rate of 125% of the regular pay, and 150% after that.
Overtime work and pay rates are usually included in the employment contract.
During the first five years of employment, employees are entitled to 12 paid vacation days, which increases with each year of service as follows:
Employees are entitled to 18 sick leave days a year; this leave accrues at a rate of 1.5 days with every month of service.
Upon return to work, the employee must provide a medical certificate from a doctor.
Employees with over a year of service with the same employer is entitled to 26 weeks of maternity leave, and those with less are entitled to 15 weeks of maternity leave.
The payment during this period depends on how long the employee paid national insurance taxes. If the payment was for 10 out of the 14 months preceding the maternity leave, or 15 out of the 22 months preceding the leave, the employee is paid for 15 weeks of the maternity leave. If the employee paid insurance taxes for six out of the 14 months prior, they are entitled to a maternity allowance for eight weeks.
Employees are also entitled to five days of paid paternity leave following childbirth. The first three days will be on account of the employee’s accrued annual vacation days, and the remaining two days will be on account of the employee’s accrued sick leave.
<aside> 💡 You can get a detailed breakdown of the employer contributions for any gross salary by using our Oyster Platform Quote Generator
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VAT is required on the total cost of the team member at a value of 17% unless you meet the following criteria:
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