IL
Israel: Payroll & Employment Facts
Verified statutory employment facts for Israel, each with its official source and the date it applies from. This is our reference record. For provider choice and hiring advice, see the Israel employer-of-record guide and the Israel country hub.
What is the minimum wage in Israel?
| National minimum wage |
₪6,443.85 / month
|
|---|---|
| Next review date |
2027-04-01
|
What employer social contributions apply in Israel?
Rates are a percentage of gross wage, applied up to the annual contribution ceiling.
| Employer social security rate |
7.60%
|
|---|---|
| Pension |
6.50%
|
| Healthcare |
0.00%
|
| Severance Pay (Pitzuim) Component |
6.00%
|
| Annual contribution ceiling |
588,360 ILS
|
| Total employer burden |
20.10%
|
What notice and leave rules apply in Israel?
Statutory minimum notice the employer must give, by completed length of service.
| Length of service | Employer notice |
|---|---|
| 0 to 11 months | 1 weeks |
| 12+ months | 4 weeks |
Checked 2026-06-06
| Payment in lieu of notice (PILON) |
Permitted
|
|---|---|
| Minimum annual leave |
12 days
|
| Annual leave includes public holidays |
No
|
| Public holidays per year |
9 days
|
Is 13th-month pay required in Israel?
None of the following are mandated by statute; they may still arise from a contract or collective agreement.
| Thirteenth-month pay required |
Not available
|
|---|---|
| Profit sharing required |
Not available
|
| Holiday bonus required |
Not available
|
How is severance calculated in Israel?
| Formula |
One month's salary for each year of employment with the employer. For a fraction of a year of employment, the severance pay will be calculated on a pro-rata basis.
|
|---|---|
| Per-year multiplier |
1 months of pay per year of service
|
| Minimum qualifying tenure |
12 months
|
| Calculation base |
The 'determining salary' for severance pay is based on the employee's last monthly salary and includes: basic salary, seniority allowance, cost of living allowance, family allowance, and fixed professional or departmental allowances. it generally excludes variable components such as overtime, non-recurring bonuses, commissions (unless they are a fixed part of the salary), and expense reimbursements (e.g., travel, phone).
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