Working In Israel: Employee Benefits

Hiring workers in Israel: what to consider

Israel, technologically, is one of the best in the world. It boasts a market highly concentrated on technology. With that in mind, the country focuses on progress and research, further pushing the nation’s development. Other countries recognize their technological prowess, enticing businesses and investors to set up in Israel.

Furthermore, the country boasts a growing economy with an inflation rate of about 5% in October 2022. More than that, the country produces resources such as petroleum, minerals, and oil making it easier for businesses that use these materials.

Lastly, with technological prowess, the nation boasts a high internet service, making it possible to connect and use the information to its utmost fullest.

Mothers are entitled to 26 weeks of maternity leave if they worked for the same employer for one year or in the same workplace. Mothers not within that circumstance only have 15 weeks of maternity leave. 


The compensation for maternity leave is only 15 weeks; the remaining 11 weeks are unpaid. Mothers who have worked for at least a year can extend their unpaid leave to more than 11 weeks. However, the maximum amount a mother can take unpaid leave is about 25% of her time in the company.

The current law in Israel states that paternal leave is connected with the mother’s 15 weeks of maternity leave. Therefore, couples decide who stays home to take care of their children. 

The country’s minimum wage is about ₪5400 monthly, roughly USD 1560 as of November 2022. 

The regular working hours in the country are 42 hours a week. Requiring employees to rest for at least 48 hours.

The country has about nine paid public holidays. These nine holidays are Jewish, including Passover and the Jewish New Year. However, the specific dates of these holidays change, making the number of public holiday leave differ by the year. 

The minimum number of vacation days a full-time employee is entitled to have is 12 days. The number of vacation days increases with seniority.

Employees are entitled to about a day and a half of sick days monthly. The maximum number of days an employee can avail of sick days is 90 days or roughly three months. On the second and third days of leave, the employee is entitled to receive 50% of their regular pay. The 4th day onwards increases the percentage from 50% to 100%. 
For an employee to receive financial compensation, a doctor’s note must be provided to the employer.

When it comes to overtime, employees are compensated with 125% of their regular wage for the first two hours of overtime. Any hour more than that equates to 150%.

Pension contributions are a mandatory benefit in Israel, and employers are required to contribute a certain percentage of the employee’s salary towards a pension fund. The specific details of the pension structure in Israel are as follows:

Contribution TypeEmployer ContributionEmployee ContributionTotal Contribution
Basic Pension6%6%12%
Voluntary Pension0-7.5%0-7.5%0-15%

The basic pension contribution is mandatory for all employees in Israel, and is split equally between the employer and the employee. The employer is required to contribute 6% of the employee’s salary towards the basic pension, and the employee is required to contribute an additional 6% of their salary. This results in a total contribution of 12% of the employee’s salary towards the basic pension.

In addition to the basic pension, employees in Israel also have the option to contribute to a voluntary pension. The employer and employee can both choose to contribute a certain percentage of the employee’s salary towards the voluntary pension, up to a maximum of 7.5% each. This means that the total contribution towards the voluntary pension can be up to 15% of the employee’s salary.

The working week of the country adheres to Sunday to Thursday, making it different from other countries.

Global People is a leading local employment solutions provider for national and international corporations and can advise and escort you in your next destination.

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Global People aims to assist its clients to fully focus on their development and success in their target destinations without having to worry about the regulation and compliance involved in the employment of their local and expat employees.


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