Employment, Payroll & Mobility in Israel

Essentials guide · Source-checked research73% of statements checked against a source9 checked against an official source32 checked against a secondary sourceChecked 2026-10-195 held back until checked against an official source8 topics include AI-written statements, not source-checkedNot yet professionally reviewed

• The standard full-time working week is 42 hours, with overtime paid at premium rates.

  General rule under hours of work legislation since 2018; shift work, managers and positions of trust may be treated differently.FISCHER (FBC & Co.) · checked 2026-10-19

• Under the Severance Pay Law, 1963, an employee dismissed after at least one year of service is generally entitled to severance pay of one month's last salary for each year of service.

  Exceptions apply, for example dismissal for serious misconduct. Severance can be replaced by monthly employer contributions to a pension fund under a general permit (commonly called a section 14 arrangement).FISCHER (FBC & Co.) · checked 2026-10-19

• Mandatory pension arrangements require employers to make monthly pension and severance contributions for employees, with employees also contributing.

  Applies under a general extension order to private-sector employees after a qualifying period. Contribution percentages are listed in gaps.FISCHER (FBC & Co.) · checked 2026-10-19

• Employers and employees both pay National Insurance contributions on salaries, and employees also pay health insurance tax, at rates set by monthly income band.

  Resident employees: employer 4.51% up to ILS 7,703 a month and 7.6% above that up to ILS 51,910; employee 1.04% and 7%; health insurance tax 3.23% and 5.17%. Non-resident employees pay lower rates and are not subject to health insurance tax.PwC Worldwide Tax Summaries · checked 2026-10-19

• Foreign experts are usually employed in Israel on a B/1 work visa, which is issued only after the Population and Immigration Authority approves the request.

  The B/1 visa is given to experts and artists, among others. Israeli missions may also ask for a police certificate and a medical certificate. Other sectors (agriculture, construction, caregiving) operate under separate quota systems.Consulate General of Israel in Los Angeles (Ministry of Foreign Affairs) · checked 2026-10-19

• The Protection of Employees (Exposure of Offences, Unethical Conduct and Improper Administration) Law, 1997 prohibits an employer from dismissing an employee for complaining about offences or breaches of integrity, with remedies including orders blocking dismissal, damages and criminal sanctions.

  Applies to employees who report wrongdoing by their employer.The Legal 500 (S. Horowitz & Co.) · checked 2026-10-19

Read the full guide: Employment, payroll and mobility