Hire and pay employees in Israel, hassle-free
With Deel, your business can easily hire employees in Israel. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries. The average onboarding time frame in the Israel is 2 days with Deel.
Onboard, pay and manage employees in Israel with Deel
Usually, to hire in Israel, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Now you can hire employees in Israel quickly, easily, and compliantly. Automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
Currency New Shekel ILS/NIS
Capital Jerusalem
Official language Hebrew
Payroll cycle Monthly
All the necessary benefits for Israel built right in
Deel allows you to provide localized benefits for employees in Israel within minutes. All in one manageable online dashboard in a single HR platform.
- Pension Fund
- Public Health Insurance
- Private Health Insurance - Menorah Mivtachim
- Private Healthcare - Allianz (optional)
- Global Life Insurance - Allianz
Our quickstart guide to hiring in Israel
Navigate the tabs below to learn everything you need to know about hiring an employee in Israel
Minimum Wage Requirements
The minimum wage is NIS 6,247.67 per month and NIS 34.32 per hour
Individual Income Tax
The individual income tax ranges from 10% to 50%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the marital status and the number of children.
The tax rates change annually.
|
Annual income (NIS) |
Tax Rate |
|---|---|
|
NIS 0 to 84,120 |
10% |
|
NIS 84,121 to 120,720 |
14% |
|
NIS 120,721 to 193,800 |
20% |
|
NIS 193,801 to 269,280 |
31% |
|
NIS 269,281 to 560,280 |
35% |
|
NIS 560,281 to 721,560 |
47% |
|
Over NIS 721,560 |
50% |
Payroll Cost
The employer cost is generally estimated at 18.38%-22.43% of the employee salary.
- Severance - 8.33%
- Pension Fund - 7.50%
- Bituah Leumi - 7.60%*
- Pension Agent Fee: 0.6% of the premiums paid
Annual costs for seniority pay will apply. Costs are NIS 418 multiplied by:
- 5 for employees with 1 year of seniority
- 6 for employees with 2 and 3 years of seniority
- 7 for employees with 4 to 10 years of seniority
* 3.55% for gross monthly salaries up to ILS 7,522. 7.60% for gross monthly salaries over ILS 7,522, capped at a maximum salary for the contribution of ILS 49,030
These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.
Overtime Pay & Maximum Hours
Standard working hours are 8.4 hours per day, 5 days a week. The standard workweek is from Sunday to Thursday.
The standard workweek can be extended up to 42 hours per week.
Overtime payment is mandatory for hourly-wage workers. Overtime payment is not mandatory for employees with a fixed salary as it is adjusted for in their salaries. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 12 hours of overtime per day, 16 hours of overtime per week. For the first 2 hours of overtime, employees are paid 125% of their hourly wage. For every hour after that, employees are paid 150% of their hourly wage.
Download the complete guide to hiring in Israel
Hiring in Israel, hassle-free
With Deel, your business can easily hire employees in Israel with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Israel and 150+ countries.
Management fee
Starting at
$599
/month
Estimated Employer Cost
18.38%-22.43%
of employee salary