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$249/month
$49/month
2% of gross salary / month
Hire in Israel, and pay employees through our platform or app.
Our Israel EOR solution is the most affordable on the market.
Fast onboarding in Israel, hire in as little as 12 hours.
We draft labor contracts compliant with Israeli labor law.
We administer all mandatory benefits and contributions in Israel.
It doesn’t stop with Israel — we are an international EOR
While it is not legally required, we strongly recommend always producing written contracts of employment for all of your employees in Israel. These contracts should be written in Hebrew, use the Israeli shekel currency, and include details such as parental leave, vacation allowance, salary/wage, and other relevant details.
By partnering with our Israel EOR, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.
6 months (functionally, for all roles)
Entitlements are based on months of service:
0 – 6 months’ service: 1 week’s notice
6 months – 1 year’s service: 1 week’s notice + 2.5 days per month of service
1+ year’s service: 30 days’ notice
1 month’s salary per year of service
6 months (functionally, for all roles)
Entitlements are based on months of service:
0 – 6 months’ service: 1 week’s notice
6 months – 1 year’s service: 1 week’s notice + 2.5 days per month of service
1+ year’s service: 30 days’ notice
1 month’s salary per year of service
The standard working week in Israel is Sunday to Thursday, as Jewish people do not work on Saturdays and businesses must apply for a permit to allow it.
The maximum number of working hours is 43, with no more than nine hours per day. Any hours worked in excess of these limits must be compensated at overtime rates, which are 25% extra for the first two hours and 50% extra for any more than two, or any work on the Sabbath (Saturday).
There are several public holidays celebrated in Israel. Most are affiliated with Judaism, so non-Jews will usually not celebrate them:
Israel has a range of national public holidays that are celebrated annually. In 2025 these holidays are:
| Date | Holiday name |
|---|---|
| 13 Apr Sunday | Passover (Day 1) |
| 19 Apr Saturday | Passover (Day 7) |
| 1 May Thursday | Independence Day |
| 2 Jun Monday | Feast of Shavuot |
| 23 Sep Tuesday | Rosh Hashana |
| 24 Sep Wednesday | Rosh Hashana (Day 2) |
| 2 Oct Thursday | Yom Kippur |
| 7 Oct Tuesday | First Day of Sukkot |
| 14 Oct Tuesday | Simchat Torah |
Workers in Israel are legally entitled to a certain amount of paid vacation leave each year. The number of days varies based on length of employment, but ranges from 10 days to 23 days. Some employers may choose to offer more days as part of their benefits packages.
Workers in Israel can accrue 1.5 days of sick leave for every month of employment. This is unpaid for the first day of absence, then paid at 50% of normal pay for days two and three, then paid at 100% of normal pay for the following days. Many employers choose to offer more generous sick leave but it is not legally required. After working with an employer for over a year, workers also qualify for a daily convalescence payment for a limited number of days.
Female employees who have worked for over six months with their employer can take seven weeks of leave at 100% of normal pay, and their position must be retained by the company. After ten months of employment, they are entitled to 14 weeks of leave, and seven weeks can be taken in advance of the birth.
Fathers can take eight days of leave (five paid by employer and three taken from vacation leave), after their child has been born.
Employees and their employers in Israel must pay toward national insurance and health insurance funds. The contributions are 12% of salary for employees and 6.75% for employers. Income tax is progressive in Israel, with rates ranging from 10% to 50% depending on income level. As of 2020, the corporate tax rate in Israel is 23%.
In Israel, healthcare is universal and workers can choose between four different levels of insurance. Some also choose to pay for private insurance, so employers may want to offer private insurance as a benefit for employees.
When employees are dismissed without proper cause in Israel, they are generally entitled to severance pay.
For terminations, notice must be given. In the first six months of employment, only one day of notice is required. For at least six months of employment, six days plus two and a half days for every month after the sixth month is required. After one year of employment, 30 days of notice is required.
Employees can usually offer severance instead of notice if they wish.
Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Israel EOR can mitigate risk for foreign companies and provide guidance through this process.
As of Jan 2024, the minimum wage in Israel for someone working is ILS 6,597 per month.
| Minimum Wage Country Comparison Chart | (Per month in USD) |
| Switzerland (Geneva) | $4,000 |
| Italy | $2,255 |
| Australia | $1996 |
| Algeria | $156 |
| Uzbekistan | $22 |
Building and running a benefits system for your employees in Israel can be complicated if you are unfamiliar with the country, its laws, and its customs. If you want to manage the setup independently, you should expect it to take weeks and potentially delay your expansion process.
Horizons can help you simplify this stage of your expansion by offering our tailored Israel EOR & benefit management outsourcing. We can provide expert advice on the best course of action and take care of your benefit setup and management, helping you focus solely on your Israel expansion.
Hire borderless talent with Horizons
With Horizons, you get quick service, transparent pricing, and expert support.
Generally speaking, the terms “Israel PEO” and “Israel EOR” are used interchangeably.
In most cases, Horizons’ Israel EOR can hire & onboard your employee within 12 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Israel.
It is possible to get a work visa in Israel. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Israel are limited, however—get started today to secure your employees’ visa spot.
Holiday Schedule in Israel [2025]
