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Israeli Employer Cost Calculator
Know your exact all-in employment cost before you hire. Every mandatory contribution, live updated as you type.
Israeli Employer Cost Calculator
Every field updates the breakdown instantly. Toggle between Essential and Premium CWS packages to see which works best for your salary level.
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$599/mo flat
Full Employment Cost Breakdown
ILS ₪What CWS Israel Handles vs. What You Handle
With CWS Israel EOR, your internal team focuses on managing the person’s work — we handle the rest.
| Task / Obligation | Direct Hire (No EOR) |  CWS Israel EOR |
|---|---|---|
| ⚙ You handle this | CWS Israel handles this ✓ | |
| Employment contract preparation | Your responsibility | CWS Israel handles |
| Bituach Leumi (NI) registration and payments | Your responsibility | CWS Israel handles |
| Monthly payroll processing | Your responsibility | CWS Israel handles |
| Pension fund management | Your responsibility | CWS Israel handles |
| Severance fund contributions | Your responsibility | CWS Israel handles |
| Annual leave tracking and payment | Your responsibility | CWS Israel handles |
| Sick leave management | Your responsibility | CWS Israel handles |
| Israeli tax filings | Your responsibility | CWS Israel handles |
| Israeli entity / legal registration | Required | Not needed |
| HR compliance monitoring | Your responsibility | CWS Israel handles |
| Day-to-day work direction | You manage | You manage |
| Performance reviews | You manage | You manage |
| Project assignments | You manage | You manage |
Choose the Right Plan
Both plans include full EOR service. The difference is the pricing model — choose whichever gives you better economics at your salary level.
Essential Boutique
Premium Boutique
Israeli Employment Costs — Frequently Asked Questions
Accurate answers based on Israeli labor law and Bituach Leumi regulations, updated for 2026.
How much does it cost to hire an employee in Israel beyond the gross salary?
In Israel, employer on-costs typically add 25–35% on top of gross salary. Mandatory contributions include: pension (6.5%), severance fund (8.33%), National Insurance / Bituach Leumi (3.55% on the first ₪7,522/mo, then 7.60% up to ₪49,030/mo), vacation accrual, and recuperation pay (Dmei Havraa). For a ₪20,000/month employee, total employer cost is typically around ₪25,000–27,000/month before service fees.
What is Bituach Leumi and how much does the employer pay?
Bituach Leumi (“National Insurance”) is Israel’s social security system. Employers pay 3.55% on the employee’s monthly salary up to ₪7,522, and 7.60% on the portion between ₪7,522 and ₪49,030. There is no employer contribution above the ₪49,030 ceiling.
What is recuperation pay (Dmei Havraa) in Israel?
Recuperation pay (דמי הבראה) is a mandatory annual benefit under Israeli law. In the first year of employment, an employer pays 5 days at ₪451.50/day = ₪2,257.50 per year (₪188.13/month). The number of days increases with seniority: 6 days in years 2–3, 7 days in years 4–10, and so on. The current rate of ₪451.50/day applies across the private sector per the operative extension order.
Is the severance fund (Pitzuyim) mandatory?
Yes. Employers must contribute 8.33% of gross salary monthly to a provident fund (Keren Pitzuyim). Under the Section 14 arrangement (common with pension-linked plans), these contributions generally belong to the employee upon termination regardless of reason.
What is the minimum vacation entitlement in Israel?
Israeli law mandates a minimum of 12 vacation days per year for the first year of employment, increasing incrementally with seniority. Unused vacation days must be paid out on termination. Use the slider above to model your specific arrangement (12–28 days).
What is the Keren Hishtalmut (Education Fund)?
The Education Fund (קרן השתלמות) is a tax-advantaged savings vehicle. Employers contribute 7.5% of gross salary; employees contribute 2.5%. It is mandatory in the public sector and standard across hi-tech and professional roles in the private sector.
What does an Employer of Record (EOR) in Israel cost?
CWS Israel offers two packages: Essential at a flat $599 + 18% VAT per employee per month, and Premium at 9.5% of total employment cost + 18% VAT. Both include full legal employer compliance, payroll, and HR administration — with zero need to set up an Israeli entity.
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