Israel– Employer of Record

Expand your Business in Israel


Israeli Shekel

population size

languages spoken


Connect Resources offers customers the ability to employ and pay staff in Israel without having to open a branch office or create a subsidiary. Our Employer of Record in Israel allows for quick on boarding of candidates, taking days instead of months.

We take care of HR, tax, and compliance management, in addition to providing employment contract guidance, statutory benefits, and employee expenses. We also provide information on any changes to local employment laws in Israel, and can assist with severance and termination if necessary.

Your organization will benefit from a swift and straightforward on boarding process that ensures your new recruits are productive as soon as possible, and have a positive hiring experience. Our team provides a team of dedicated HR professionals who are able to source the best talent from around the globe, without any hassle or difficulty.

Hiring in Israel

It is not a legal requirement in Israel to have a written employment contract, but it is highly recommended to create one. The contract should be written in Hebrew and clearly outline the employee’s salary, benefits, and conditions for terminating the agreement. To ensure accuracy, the salary and any other forms of compensation should be stipulated in Israeli shekel rather than a foreign currency.

Working Hours in Israel

In Israel, the typical work week runs from Sunday to Thursday. Nonetheless, non-Jewish individuals may pick Friday, Saturday, or Sunday as their main day off. Jewish individuals, however, cannot work on Saturday unless their employer has a special license to open on that day. The total number of hours worked per week should not exceed 42, spread out over 5 or 6 days, and no single day should go beyond 9 hours. Employees are eligible to receive additional pay for overtime, which is calculated on a daily basis.

Holidays in Israel

The country of Israel commemorates certain public holidays which are designated as days off work, such as:

  • Passover
  • Memorial Day (Half Day)
  • Independence Day
  • Pentecost
  • Rosh Hashanah (New Year)
  • Yom Kippur (Day of Atonement)
  • Sukkot (Feast of Tabernacles)
  • Shmini Atzeret/Simchat Torah

All citizens celebrate Independence Day, whereas Jewish religious holidays are not typically observed by non-Jewish people.

Vacation Days in Israel

Employees from Israel are entitled to a paid vacation each year, the amount of which is determined by the length of their employment. By law, they must receive a minimum of 10 to 23 days off each year.

Sick leave in Israel

Employees have the right to receive one and a half days of sick leave for every month they are working. With the capacity to save up to 90 days. It is important to note that, in contrast to many industries:

  • Employees are not eligible for any compensation for the initial day of being ill.
  • For the second and third days, they are entitled to half of their salary.
  • From the fourth day onwards, they will receive their full salary.

Parental Leave in Israel

  • Pregnant employees are eligible for seven weeks of maternity leave if they had been working by the company at least six to ten months prior.
  • Women who have been working for more than ten months receive fourteen weeks of paid leave.
  • Male employees get eight days of paternity leave after the birth of their kid.

Health Insurance in Israel

Every Israeli has the right to health care as stated in the National Insurance Law. The only national insurance provider in the country receives funds through mandatory taxes for social security. Regardless of which Health Management Organization (HMO) an individual belongs to, the tax rate remains the same. As the national insurance company distributes the funds to the HMOs, which in turn transfers them to the national provider.

Supplementary Benefits in Israel

Certain corporations in Israel give to “managers’ insurance” plans or pension accounts. Several employers offer disability insurance for their personnel. Workers are entitled to be remunerated for their job travel costs. Some employers provide a company car to their staff or give an extra fee for the utilization and upkeep of the car.

Termination in Israel

Employment can be ended by the employee resigning, by being dismissed, by retirement, by death, or by the end of a fixed term contract. Where an employee is dismissed, they are usually entitled to a severance payment, but not if they are dismissed for cause. Written notice must be given by either the employer or employee before the termination.

For employees whose salaries are on a monthly basis, the minimum notice period for dismissal and resignation is: one day in the first six months of employment; six days plus two and a half days for each month worked from the seventh month for employees who have worked for six months to one year; and thirty days after completion of the first year of employment.

The employer has the right to dismiss an employee without providing notice. Also, can pay a severance payment instead if necessary.

Taxes in Israel

In Israel, income tax is structured in a progressive manner. With the percentage of taxes beginning at 10% and going up to a maximum of 50%.

Besides that, employers and employees both have to contribute part of their salaries to National Insurance and Health Insurance.

Why choose us?

Connect Resources is a great way to conduct business in Israel. With our vast network of contacts and resources, we provide unparalleled access to the Israeli business community. We have a robust team of experienced business professionals with a deep understanding of the Israeli market. We provide strategic advice and assistance to help companies find the right partners, navigate the complexities of the Israeli economy, and connect with the right people. Through Connect Resources, businesses can gain valuable insights into the Israeli market, build relationships with key business leaders, and gain access to the right resources to grow and succeed.

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