Hire and pay employees in Israel compliantly from day one
Easily hire employees in Israel with Deel. Deel's best-in-class Employer of Record setup allows us to handle local laws, tax and benefits, and international payroll on your behalf in 150+ countries including Israel.
Backed by local experts and built-in compliance protection, your next hire could start in as little as 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, and licensing, can take months.
Now you can hire employees in Israel quickly, easily and compliantly. Automate tax document collection, payroll, benefits, and more. And once your new hire is onboarded, Deel HR keeps their time off and documents in one place, so managing your team in Israel doesn't mean a separate system.
Already have an entity in Israel? Our PEO services can run payroll and compliance for your direct employees.
Currency New Israeli 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 localised benefits for employees in Israel within minutes. All from 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 quick-start 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 47%. Income tax is calculated using progressive rates. A 3% surtax applies to annual taxable income from all sources exceeding ILS 721,560 (approx. ILS 60,130/month).
Multiple additional factors may affect overall rates, such as marital status and the number of children.
The tax rates change annually.
| Annual taxable income | Tax rate |
|---|---|
| ILS 0 to 84,120 | 10% |
| ILS 84,121 to 120,720 | 14% |
| ILS 120,721 to 228,000 | 20% |
| ILS 228,001 to 301,200 | 31% |
| ILS 301,201 to 560,280 | 35% |
| Over ILS 560,281 | 47% |
Payroll Cost
The employer cost is generally estimated at 19.94%–24.03% of the employee's 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:
five for employees with one year of seniority
six for employees with two and three years of seniority
seven for employees with four to ten 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
Employer liability cost — an administrative fee of 0.60% is applied to ensure ongoing workers' compensation and liability coverage
These costs are provided as estimates and are intended solely for general informational purposes. To fully understand 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, five days a week. The standard work week is from Sunday to Thursday.
The standard work week can be extended up to 42 hours per week.
Overtime pay is mandatory for hourly-paid workers. Overtime pay is not mandatory for employees on 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 and 16 hours of overtime per week. For the first two hours of overtime, employees are paid 125% of their hourly wage. For every hour after that, employees are paid 150% of their hourly wage.
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 and complex tax systems to running your payroll in Israel and 150+ other countries.
Management fee
Starting at
$599
/month
Estimated Employer Cost
19.94%-24.03%
of employee salary