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Israel

Israel

Navigate country regulations and labor laws across geographies with confidence.

Currency

NIS/ILS

State

N.A

Language Spoken

Hebrew

Payroll Frequency

Annually, Monthly, Hourly

Israel, a Middle Eastern country on the Mediterranean Sea, is regarded by Jews, Christians and Muslims as the biblical Holy Land. Its most sacred sites are in Jerusalem. Within its Old City, the Temple Mount complex includes the Dome of the Rock shrine, the historic Western Wall, Al-Aqsa Mosque and the Church of the Holy Sepulchre. Israel's financial hub, Tel Aviv, is known for its Bauhaus architecture and beaches.Israel is famous for its religious and natural landmarks, technological innovations and startup culture, strong military forces, as well as the Israeli-Palestine conflict. Israel is a land where ancient traditions meet modern innovation. Israel is a small country with a relatively diverse topography, consisting of a lengthy coastal plain, highlands in the north and central regions, and the Negev desert in the south. Running the length of the country from north to south along its eastern border is the northern terminus of the Great Rift Valley. The State of Israel is the only Jewish nation in the modern period, and the region that now falls within its borders has a lengthy and rich history that dates from prebiblical times. The area was a part of the Roman Empire and, later, the Byzantine Empire before falling under the control of the fledgling Islamic caliphate in the 7th century CE. Although the object of dispute during the Crusades, the region, then generally known as Palestine, remained under the sway of successive Islamic dynasties until the collapse of the Ottoman Empire at the end of World War I, when it was placed under British mandate from the League of Nations.

Employees receive a minimum of 12 working days annual leave for their first five years of service, increasing to 14 working days from the sixth year, 15 working days from the seventh year, and from the eighth year onward one additional day per year of service up to a maximum of 20 working days. An employee who has a 6-day workweek is entitled to 6 days of absence from work for every seven days of leave accrued by law (since within seven days of leave, a Saturday is included, which is the weekly rest day at workplaces where people work six days a week). Annual leave payment is calculated at the regular salary pay rate.

9 Public Holidays. Public holidays that fall on the weekend are usually lost. Holidays are based on religious association and days can be swapped out to align with one’s religious observance.

16 Vacations. All Israeli employees with a five-day workweek are entitled to a minimum of 12 paid vacation days for the first four years of employment, while those with a six-day workweek are entitled to 14 days. This gradually increases after four years to a maximum of 28 days.

Sick leave is accrued at a rate of 1.5 days per month with a maximum of 90 days total. Payment during sickness is dependent on the length of leave as follows: For the first day of sick leave, the employee is not entitled to pay On the second and third day of sickness, the employee is entitled to 50.00% of their regular pay From the 4th day onwards, the employee is entitled to 100.00% of their regular pay Upon return, the employee must provide a medical certificate from a medical professional. Under the Sick Pay Law amendment an employee suffering from a malignant disease (cancer) or a condition that requires regular dialysis treatments, or who recovered from such a disease, is eligible for full sick pay (100%) from the first day of absence, if on leave from work to receive care or undergo periodic examinations for that condition. (up to a maximum of 90 days). Employees must provide a medical certificate from a medical professional confirming the necessity of treatment or examination because of the condition

In Israel, employees who are being dismissed are entitled to severance pay upon completing one year of service. The severance pay is calculated at one month’s salary multiplied by the number of years of employment (including work for part of a year). Under the Section 14 Arrangement, the employer must carry out monthly contributions equivalent to 8.33% of the employee’s monthly salary payment towards the severance pay component. The accrued amount is to be released to the employee upon termination, even if the employee resigned without circumstances that would entitle the employee to severance pay if the employee was not subjected to the Section 14 Arrangement.

Mobile phones or mobile phone allowances can be provided as a taxable benefit. Meal allowance or vouchers. Study fund – it is common to give employees a study fund. The employer contributes a monthly amount of up to 7.5% of the monthly salary and the employee contributes an amount of 2.5% of salary. After 6 years the accumulated amount in the fund may be released tax free. There is a tax-free ceiling set at 15,712 NIS which is annually updated. Holiday gifts – it is common to give holiday gifts twice a year for the Rosh Hashana and Passover holidays. These gifts are taxed. Additional annual leave – in some industries it is common to give additional annual leave beyond the legal minimum.