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Your Complete Guide to
Hiring in Israel
Everything you need to know about Israeli employment law, costs, and compliance — in one place.
Everything About Israeli Employment
Navigate Israel's employment framework with confidence. Select a topic to explore.
Types of Employment
- Permanent employment — indefinite contract, most common form
- Fixed-term contract — defined start and end date, requires justification
- Part-time employment — pro-rated entitlements, same statutory protections
- Independent contractors — different legal status; misclassification is a major risk
Working Hours & Overtime
- Standard week: 42 hours/week over 5 or 6 days
- Max daily: 8.6 hours (5-day week) or 8 hours (6-day week)
- Overtime rate: +25% for first 2 overtime hours/day
- Overtime rate: +50% for each hour beyond that
- Employers must maintain detailed timesheets
Notice Periods
- First 6 months: 1 day notice per month worked
- Months 7–12: 6 days + 2.5 days for each month beyond six
- After 1 year: 1 month notice (standard)
- Notice must be in writing
- Employer may pay in lieu of notice
Probation Period
- No statutory probation in Israeli law
- Collective agreements typically allow 3–6 months
- Employer can extend trial period fairly under defined conditions
- Probationary employees still receive full statutory protections
📌 Key fact: Israeli employment law applies to all workers in Israel regardless of nationality. Statutory minimums cannot be waived — only improved upon by contract.
| Benefit | Rate / Amount | Notes |
|---|---|---|
| Pension (employer contribution) | 6.5% of salary | Mandatory since 2008 reforms |
| Severance reserve | 8.33% of salary | 1 month per year of service |
| Annual Leave | 12 days minimum (increases with tenure) | Increases with tenure |
| Sick Leave | 18 days/year | 1.5 days per month, max 90 days accrued |
| Recuperation Pay (Dmei Havraa) | NIS 2,200+ per year | Paid once a year; varies by sector |
| National Insurance (Bituach Leumi) | 4.51%–7.6% | Employer portion; covers health, unemployment |
| Education Fund (Keren Hishtalmut) | 7.5% employer / 2.5% employee | Not mandatory but widely expected |
| Travel Allowance | Up to public transport cost | Mandatory for commuting employees |
Total On-Cost Estimate
- Mandatory on-costs: approximately 30–40% on top of gross salary
- Budget NIS 1.3–1.4 for every NIS 1.0 of gross salary
- Use our Employer Cost Calculator for a precise figure
Common Optional Benefits
- Supplementary health insurance (above Kupat Cholim)
- Meal card (Cibus/Card de Lunch) — very common in tech
- Company mobile phone or allowance
- Remote work equipment budget
- Annual bonus / equity / RSUs
Job Advertisements
- Equal Opportunity Law 1988 applies — no discriminatory ads
- Must not specify protected characteristics (gender, religion, origin)
- Job title must be non-gendered in Hebrew job posts
Employment Agreement Requirements
- Must be in writing within 30 days of start date
- Must include: position, salary, working hours, leave entitlement
- Must reference applicable collective agreements
- Cannot waive statutory minimums
Onboarding Documentation
- Israeli ID (Teudat Zehut) or passport copy
- Bank account details for salary transfer
- Tax status form — Tofes 101 (annual tax coordination)
- Pension fund selection / transfer form
- Previous employer certificate (Tofes 161)
Probation Period Practices
- Typically stated in the employment contract
- 3 months common; up to 6 months for senior roles
- Performance reviews recommended at 30, 60, 90 days
- Dismissal during probation still requires documented cause
Notice Periods (Recap)
- Under 6 months: 1 day per month worked
- 6–12 months: progressive scale
- Over 1 year: 1 full month notice
- Can be paid in lieu — employee gets full month salary
Severance Pay
- 1 month salary per year of service
- Applies after 12+ months of employment
- Based on last month’s gross salary
- Pension contributions may offset severance liability (Tzav 8)
Pre-Dismissal Hearing (Shimua)
- Mandatory before any dismissal decision is final
- Employee must be notified of intended reasons in advance
- Employee has right to respond and bring a representative
- Written record of hearing must be kept
- Skipping this step risks claims of wrongful dismissal
Special Protections
- Pregnant employees: require Ministry of Labor approval to dismiss
- Employees on maternity/paternity leave: cannot be dismissed
- Union members: additional collective agreement protections may apply
- Employees on sick leave: restrictions on dismissal during leave
⚠ Important: Final settlement must include outstanding salary, unused vacation pay, severance (if applicable), recuperation pay, and Tofes 161 (employment certificate). Errors in final settlements are one of the most common sources of labor disputes in Israel.
Who Needs a Work Visa?
- All non-Israeli citizens working in Israel
- Dual citizens of Israel are exempt
- New immigrants (Olim) receive an A5 visa with work rights
- Business visitors cannot work on tourist visas
B1 Expert Work Visa
- Most common visa for foreign professionals
- Requires employer sponsorship — CWS can be the employer of record
- CWS Israel handles B1 applications — fee: NIS 28,000/year
- Valid up to 12 months; renewable annually
- Processing time: typically 6–12 weeks
A5 Visa for New Immigrants (Olim)
- Granted to Jewish immigrants under the Law of Return
- Provides immediate work rights in Israel
- Tax benefits for first 10 years of residency
- CWS supports Olim onboarding — see our Olim First Steps service
B1 Application Requirements
- Verified certificate of good conduct
- Medical certification (tuberculosis, hepatitis, AIDS)
- Completed visa application form + 2 passport photos
- Employer commitment letter and explanation of need
- Proof of valid medical insurance
- Salary at or above the Ministry of Interior threshold
💡 CWS Israel tip: Start the B1 visa process at least 3 months before the intended start date. We manage the entire end-to-end application process as part of our EOR service. Contact us at raz@cwsisrael.com to get started.
Key Israeli Employment Laws
Israel’s employment landscape is governed by a layered legal framework built on foundational statutes.
Hours of Work and Rest Law
Sets the 42-hour work week, defines daily maximums (8–9 hours), mandates overtime premium rates (25% and 50%), and requires employers to maintain timesheets. The cornerstone of working-hours regulation in Israel.
Annual Leave Law
Guarantees minimum paid vacation — starting at 10 days/year and increasing with tenure. Employers cannot pay out unused leave in lieu of actual time off (except on termination). Leave is a protected right, not a benefit.
Equal Opportunity in Employment Law
Prohibits discrimination in hiring, promotion, training, or dismissal based on gender, religion, nationality, origin, age, disability, family status, or sexual orientation. Applies to all employers regardless of size.
Why Companies Use Employer of Record in Israel
Israel’s compliance complexity makes EOR the fastest and safest route to market for most international companies.
- 1
No Israeli Entity Required
CWS Israel is the legal employer. You avoid the cost and 6–12 month timeline of setting up an Israeli company, plus ongoing accounting and legal obligations.
- 2
Compliance Complexity Is Handled
Israeli labor law, pension regulations, National Insurance, tax withholding — CWS manages all of it, backed by PwC-verified 100% compliance since 2014.
- 3
Cost Efficiency
EOR at $599/month (Essential Boutique) or 9.5% of total employer cost (Premium Boutique) is significantly cheaper than establishing and running a local entity with in-house HR and legal staff.
- 4
Speed to Hire
Onboard an employee in Israel within days, not months. Secure your candidate before they accept another offer — no entity setup delay.
Simple, transparent fees
Fixed monthly fee. Great for stable headcount.
Scales with salary. Includes full-service support.
Start With the Right Tool
Use our free resources to calculate costs, assess contractor risk, or get expert advice.
IC vs Employee Calculator
Assess the misclassification risk of your independent contractors in Israel. Get a compliance score instantly.
Run the CalcEmployer Cost Calculator
Enter a gross salary and instantly see total employer cost including all mandatory contributions and levies.
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Contact CWSNational Holidays in Israel
Israel runs on the Hebrew calendar, so every public holiday moves against the Gregorian year. The dates below cover the twelve months from September 2026 to August 2027, with what each one means for payroll, staffing and scheduling.
How the Israeli holiday year works
Holidays start the evening before
Every holiday begins at sunset on the preceding day and ends at nightfall the following day. The eve of a holiday is a working day, but a shortened one, so the practical disruption starts the afternoon before the date in the table.
The working week
The statutory working week is 42 hours. Most office employers run Sunday to Thursday. Retail, industry and public services often run a six day week that finishes around midday on Friday.
Weekly rest
Employees are entitled to at least 36 consecutive hours of weekly rest, which includes Shabbat for Jewish employees. Employees who are not Jewish may elect their own weekly rest day and observe the festivals of their own religion instead.
Nine statutory days
In a normal year there are nine paid statutory days of rest: two days of Rosh Hashanah, Yom Kippur, the first day of Sukkot, Shmini Atzeret and Simchat Torah, the first and seventh days of Pesach, Shavuot, and Independence Day.
Statutory public holidays, September 2026 to August 2027
| Holiday | Begins at sunset | Holiday date | Falls on |
|---|---|---|---|
| Rosh Hashanah, day 1 | Friday 11 September 2026 | Saturday 12 September 2026 | Shabbat |
| Rosh Hashanah, day 2 | Saturday 12 September 2026 | Sunday 13 September 2026 | Working day |
| Yom Kippur | Sunday 20 September 2026 | Monday 21 September 2026 | Working day |
| Sukkot, first day | Friday 25 September 2026 | Saturday 26 September 2026 | Shabbat |
| Shmini Atzeret and Simchat Torah | Friday 2 October 2026 | Saturday 3 October 2026 | Shabbat |
| Pesach, first day | Wednesday 21 April 2027 | Thursday 22 April 2027 | Working day |
| Pesach, seventh day | Tuesday 27 April 2027 | Wednesday 28 April 2027 | Working day |
| Yom HaAtzmaut, Independence Day | Tuesday 11 May 2027 | Wednesday 12 May 2027 | Working day |
| Shavuot | Thursday 10 June 2027 | Friday 11 June 2027 | Friday |
Plan around this year in particular. Three of the nine statutory days fall on Shabbat and one falls on a Friday. For an employer running a Sunday to Thursday week, only five of the nine cost a working day: 13 and 21 September 2026, 22 and 28 April 2027, and 12 May 2027. A holiday that falls on a day the employee would not have worked does not generate a substitute day off or an extra payment.
Days that are not statutory holidays but still change the working week
| Observance | Date or dates | What to expect |
|---|---|---|
| Chol HaMoed Sukkot | Sunday 27 September to Friday 2 October 2026 | The intermediate days of Sukkot. Schools are closed, many workplaces run reduced hours, and a large share of staff take annual leave. Treat the whole Tishrei period as low capacity. |
| Chanukah | First candle Friday 4 December 2026, eighth day Saturday 12 December 2026 | A normal working period for adults, but schools are closed for most of it, so expect childcare driven absence and early finishes. |
| Purim | Tuesday 23 March 2027. Jerusalem observes Shushan Purim on Wednesday 24 March 2027 | Not a statutory day off, but in practice close to one. Schools are closed, many offices hold costume events, and output is low. Jerusalem based staff are effectively out a day later than everyone else. |
| Chol HaMoed Pesach | Friday 23 April to Tuesday 27 April 2027 | The intermediate days of Passover. Schools are closed for roughly three weeks around the festival, families travel, and annual leave requests peak. After Tishrei this is the single biggest planned capacity gap in the year. |
| Yom HaShoah | Tuesday 4 May 2027, beginning at sunset Monday 3 May | Holocaust Remembrance Day. Offices are open, but a siren sounds nationwide and the country halts. Places of entertainment are closed. Not a day for launches, celebrations or client events. |
| Yom HaZikaron | Tuesday 11 May 2027, beginning at sunset Monday 10 May | Memorial Day for fallen soldiers and victims of terrorism. A working day in law, but most workplaces close early or hold a ceremony. Sirens sound and the country stands still. It ends at nightfall, when Independence Day begins. |
| Lag BaOmer | Tuesday 25 May 2027, bonfires the evening of Monday 24 May | A working day, but schools are closed and bonfires run late the night before. Expect a slow start on the morning of the 25th. |
| Yom Yerushalayim | Friday 4 June 2027 | Jerusalem Day. A national day rather than a statutory day of rest, and it falls on a Friday, so it has little effect on a Sunday to Thursday week. |
| Tisha B’Av | Thursday 12 August 2027, beginning at sunset Wednesday 11 August | A fast day commemorating the destruction of the Temples. Offices are open and many people work, but restaurants and places of entertainment close and fasting staff will be working at reduced capacity. |
The employment mechanics
Who is paid, and when the entitlement starts
Monthly salaried employees are paid their normal salary and the holiday is absorbed into it. Hourly and daily paid employees become entitled to paid holidays after three months of employment, and the entitlement is normally conditioned on working the shift immediately before and immediately after the holiday unless the absence was agreed with the employer.
The eve of a holiday is a short day
Under the Hours of Work and Rest Law a full working day on the eve of a holiday is seven hours, paid as a full day, with anything beyond that treated as overtime. Many workplaces close earlier still by collective agreement or long standing custom, so check what applies to your sector rather than assuming the statutory floor.
When a holiday falls on Shabbat
There is no substitute day off and no additional payment, because the day was already a rest day. This is not an oversight in the law, and it is the single most common misunderstanding among foreign employers. In the year above it applies to three of the nine statutory days.
Working on a holiday
Holiday work requires a permit and is compensated at a premium. The statutory floor is 150 percent of the wage plus a substitute rest day. Where an employee already receives the holiday as a paid day, payroll practice commonly produces an effective 250 percent for that day. Treatment varies by collective agreement and by sector, so confirm the position for a specific role before you commit to it in an offer.
Chol HaMoed is not a holiday in law
The intermediate days of Sukkot and Pesach carry no statutory entitlement. In practice schools are shut, public services run reduced hours and a large share of the workforce is on annual leave. Employers who plan for full attendance during chol hamoed are the ones who get caught out.
Employees who are not Jewish
An employee who is not Jewish may elect to observe the festivals of their own religion in place of the Jewish holidays, and to take their own weekly rest day. The number of paid days does not change, only which days they fall on. Agree the elected days in writing at onboarding so payroll is not reconstructing it later.
Why the country slows down, and when
The Tishrei cluster, September to October
Rosh Hashanah, Yom Kippur, Sukkot and Simchat Torah fall within about three weeks. Between the holidays themselves, chol hamoed and school closures, this is the least productive stretch of the Israeli year. Do not set launch dates, contract deadlines or onboarding milestones inside it. In 2026 that window runs from 11 September to 3 October.
Yom Kippur, when the country stops
Yom Kippur is different in kind, not just in degree. Broadcasting ceases, Ben Gurion Airport closes, there is no public transport, and the roads are empty enough that children ride bicycles on the motorways. Observance is close to universal, including among secular Israelis, who treat it as a national quiet day rather than a religious obligation. Nothing at all can be scheduled, and no Israeli colleague will be contactable.
The two memorial days
Yom HaShoah and Yom HaZikaron have a character foreign employers often misread. Both are working days, and on both a siren sounds and the entire country stops where it stands, in the street, in offices, on the motorway. Yom HaZikaron is close to universal bereavement in a country with conscription, and it ends at nightfall with the immediate start of Independence Day. That switch from mourning to celebration in a single evening is deliberate. Keep meetings, launches and social events off both dates.
Pesach, a family logistics event
Passover is the largest domestic travel period of the year. Schools close for around three weeks, extended families gather for the seder, and the working week between the first and seventh days is nominal for many employers. Annual leave requests for this window arrive months ahead.
Purim, low output rather than closure
Purim is not a day off, but very little gets done. Schools are closed, offices hold costume days, and the surrounding week carries school events. Plan it as a soft day rather than a working one.
August, the quiet month nobody legislated
August carries no public holidays at all, yet it is one of the thinnest staffing months of the year. School summer holidays run through July and August and the school year restarts on 1 September, so parents take extended leave and many businesses run on skeleton cover. Build it into your resourcing plan the same way you would a statutory closure.
Holiday entitlement interacts with annual leave, recuperation pay and overtime rules, and several of these points shift with the collective agreement covering a given sector. Use the Employer Cost Calculator to model the full cost of an Israeli hire, or talk to our team about how holidays are handled under our Employer of Record service.
Dates are for the Israel schedule, which differs from the Diaspora schedule, and were verified against the Hebrew calendar in August 2026. This page is general information about Israeli employment practice and is not legal advice.
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