The Hardest Market · Israel

Israel's HR data

The rules and costs of employing people in Israel (Tel Aviv), from official sources, in English and Japanese.

32.8%women in management (2024, ILO)
1.14×employer's total cost on ₪22,000 a month, as a multiple of salary
9public holidays (2026)

Employment rules

Statutory annual leave12 working days (5-day week), rising with service
Public holidays (2026)9 days
Notice of dismissalUp to 1 month by service
Severance required by law1 month/year (often via 8.33% pension)
Typical negotiated exitNo official benchmark
ProbationNone by law; 3-6 months by contract
Working hours42 h/week
How hard is dismissal?Moderate: hearing and good faith required

Employer contributions

Employer National Insurance (reduced rate)4.51%up to ₪92,436 a year
Employer National Insurance (full rate)7.6%on pay above ₪92,436 a year, up to ₪622,920 a year
Mandatory pension, employer (benefits)6.5%up to ₪165,228 a year
Severance fund contribution, employer6%up to ₪165,228 a year

Employee contributions

National Insurance and health tax (reduced rate)4.27%up to ₪92,436 a year
National Insurance and health tax (full rate)12.17%on pay above ₪92,436 a year, up to ₪622,920 a year
Mandatory pension, employee6%up to ₪165,228 a year

Take-home pay and employer cost by monthly salary

Monthly salaryEmployee contributionsIncome taxTake-homeEmployer costCost ÷ salary
₪15,000₪2,043₪1,341₪11,616₪17,6231.17×
₪22,000₪2,895₪3,071₪16,034₪25,1551.14×
₪30,000₪3,869₪5,747₪20,384₪33,7631.13×
₪45,000₪5,694₪10,997₪28,309₪49,9031.11×

Employee in Tel Aviv, Israeli resident and citizen, single man with no children (2.25 credit points; a woman gets 2.75, i.e. ILS 1,452 a year less tax), not a new immigrant or returning resident and not in a tax-benefit locality, no reserve-duty or degree credits, salary only paid evenly as monthly pay, calendar tax year 2026. Income tax with the 2026 brackets as widened retroactively from 1 January 2026 by Amendment 288 of the Income Tax Ordinance; National Insurance and health tax at the 2026 rates and ceilings; mandatory pension under the general extension order at the statutory minimum (employee 6%, employer 6.5% plus 6% severance) on pay up to the national average wage, with the 35% tax credit on the employee's deposit.

Sources: [1] [2] [3] Checked 2026-11-08; 2026 rates.