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Employee in Israel
Working in Israel has several important aspects to consider.
On this page, we'll take a brief look at topics such as the minimum wage, paid vacations and sick leave, workers' rights, notice periods, employment contracts, and employers' and social security contributions in Israel.
Finally, if you wish to calculate your net salary, or obtain the amount of gross charges, we invite you to use our simulator on the following link:
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Minimum wage in Israel
In Israel, the minimum wage is regulated by law. From April 2023, the gross minimum wage is set at 5,571.75 shekels per month for full-time employment.
The hourly rate is 30.61 Shekels per hour.
Miners are paid a different wage.
A "working minor" is defined as an employee under the age of 18. The minimum wage for minors working full-time (defined as 40 hours a week under minimum wage regulations) is as follows:
- For a minor under sixteen: 70% of the minimum wage.
- For a minor aged 16 and over but under 17: 75% of the minimum wage.
- For a minor aged seventeen and over but under eighteen: 83% of the minimum wage.
The hourly minimum wage for working minors is calculated on the basis of the monthly minimum wage applicable to their age bracket, divided by 173 monthly hours. From April 1, 2023, the updated hourly minimum wages for working minors are as follows:
- For minors under 16: 22.54 ₪.
- For minors aged 16 and over but under 17: 24.15 ₪.
- For minors aged 17 and over but under 18: 26.73 ₪.
Please note that this information is provided for guidance only and may be subject to change. It is advisable to consult the labor laws in force and an expert in labor law for specific advice on the minimum wage in Israel for minors.
This amount is revalued periodically to take account of inflation and other economic factors. It is important to note that specific professions may have different minimum wages.
How is the minimum wage calculated in Israel?
The minimum wage in Israel is determined by law and is subject to updating. Under current legislation, every April the minimum wage in the economy is updated and set at at least 47.5% of the average wage, as defined on January 1 of that year. This mechanism ensures that the minimum wage remains proportional to the average wage.
In recent years, prior to the update that took effect in April 2023, the minimum wage in the economy was 5,300 shekels. During the years 2021-2022, the average wage in the economy was frozen, in accordance with Section 1 of the National Insurance Law, in order to stabilize the state budget and avoid the distortions caused by the COVID-19 crisis. With the end of the freeze period, as mentioned above, the minimum wage was updated from 5,300 shekels to 5,571.75 shekels. This represents an increase of over 5% in the monthly minimum wage.
The minimum hourly wage is calculated on the basis of 5,571.75 shekels divided by 182 monthly hours.
Paid leave and sick leave
An employee in Israel is entitled to annual paid leave, also known as vacation, these days are called Yemei Houfsha.
They are also covered in the event of illness; these days are called Yemei Mahala.
Sick leave in Israel
An employee in Israel who is absent from work due to illness will not receive full pay from the first day of illness. Under current regulations (with the exception of employees subject to different collective agreements), the usual calculation is as follows:
- First day of illness - no entitlement to payment
- Second day - half the amount
- Third day - half the amount
- From the fourth day onwards - the employee will receive a full salary
To calculate sick pay, you can check how many days you have accumulated and, based on the number of days the doctor has confirmed, perform a simple calculation: 0% for the first day, 50% of daily pay for the second and third days, and full payment from the fourth day onwards.
In addition, an employee in Israel is entitled to paid sick leave in the event of illness or accident, in accordance with current legislation. The duration and specific conditions of paid leave and sick leave may vary according to the length of employment and the applicable collective agreements.
More information in this article: insert article about sick leave.
Other rights for employees in Israel
In addition to paid vacations and sick leave, an employee in Israel benefits from several other rights.
These include special leave for family events, such as the marriage or death of a close relative, as well as maternity, paternity and adoption leave.
Employees are also entitled to time off for compulsory military service, if applicable.
Notice period in Israel
The notice period is the period of time during which an employee in Israel or an employer must inform the other party of his intention to terminate the employment contract.
In Israel, the notice period varies according to the employee's length of service in Israel.
Days of notice are calculated on a calendar basis, not on a "working day" basis. The law differentiates between employees who are paid on a monthly basis, and those who are paid on an hourly basis:
Length of notice in Israel for an employee paid on a monthly basis :
- For employees with more than one year's seniority, the notice period is one month.
- For employees with less than one year's seniority, the notice period will be :
- a. One day's notice for each month worked, for the first 6 months.
- b. 2 and a half days' notice for each month worked from the 6th month onwards, up to a maximum of 3 weeks' notice.
Length of notice in Israel for an employee paid by the hour:
- An employee with less than one year's seniority will have one day's notice for each month worked.
- An employee in his 2nd year of employment will have 14 days' notice, plus one day for each additional 2 months worked. (E.g.: for 16 months' seniority, the period will therefore be 14 days for the first year, and 1 additional day for each 2 months' work, for a total of 16 days' notice).
- An employee in his 3rd year of employment will have 21 days' notice, plus one day for each additional 2 months worked.
- An employee with a minimum of 3 years' seniority will have one month's notice.
This period increases progressively with the employee's seniority.
Specific details of the notice period may be specified in the employment contract or in the applicable collective bargaining agreements.
Employment contract in Israel
In Israel, an employment contract is generally drawn up between employer and employee.
Is it compulsory to draw up an employment contract in Israel?
By law, it is not obligatory in Israel to draw up a written employment contract. Verbal agreements are also possible, and are binding on both parties in the same way as a written contract.
However, it is compulsory to provide the employee with written notification of the working conditions!
It is possible to deduce the terms of the employment contract agreed between the parties from their behavior, but it is advisable, even desirable, when drawing up a verbal contract, to have witnesses.
A written employment contract can avoid conflicts and difficulties between the parties, whereas a verbal agreement can create misunderstandings or differences of opinion. That's why it's so important to set out the terms in writing.
What's more, even in the absence of a written employment contract, the law requires the employer to inform the employee of the working conditions - duration of employment, nature of the position, salary, volume of work, weekly rest day and social conditions - within 30 days of the employee's first day of work.
All agreed terms, whether verbal or in writing, must be included in this notification. Failure to do so may result in the employer denying the agreed terms.
It's important to know that even in the absence of a written employment contract, the employee has the right to claim compensation in legal proceedings. Compensation of up to 15,000 shekels has recently been awarded to employees for unwritten employment contracts.
This contract must include information such as the duration of employment, salary, working conditions, and the rights and responsibilities of each party. We recommend that you carefully read and understand the terms of the contract before signing.
If an employment contract is not in writing, the law provides for legal provisions that apply by default.
Working in Israel: Social security and employer contributions
In Israel, both employees and employers are required to pay social and employer contributions. Social security contributions include contributions to health insurance, national insurance and other social security schemes. Employers are also required to pay employer contributions, which vary according to the nature of the job and the legislation in force. These contributions are used to finance social security programs and benefits to which employees are entitled, such as health insurance, family allowances and pensions.
In Israel, it is important to note that social security contributions and employer's contributions are deducted at source directly by the employer. The employee, on the other hand, has nothing to pay; everything is deducted directly by the employer at source.
Social security and employer contributions in Israel
In Israel, employees and employers are required to pay social security and employer contributions. Social contributions include contributions to health insurance, national insurance and other social security schemes. Employers are also required to pay employer contributions, which vary according to the nature of the job and current legislation. These contributions are used to finance social security programs and benefits to which employees are entitled, such as health insurance, family allowances and pensions.
In Israel, it is important to note that social security contributions and employer's contributions are deducted at source directly by the employer. The employee, on the other hand, has nothing to pay; everything is deducted directly by the employer at source.
How to calculate employers' contributions in Israel?
Labor lawyer in Israel
It is essential for employers to understand their rights and obligations as employers in Israel. Indeed, compliance with labor laws and regulations is crucial to ensuring a fair working environment that respects employees' rights.
In Israel, employers have certain obligations towards their employees. These include compliance with labor standards, payment of wages in accordance with applicable laws, provision of paid vacation and sick leave, and observance of notice periods in the event of dismissal.
On the one hand, employers have the right to set clear requirements and expectations for their employees, define working conditions and take disciplinary action in the event of non-compliance. On the other hand, employers must respect employees' rights, such as the payment of wages, the provision of a safe and healthy working environment, and compliance with laws on paid leave and sick leave.
It is also important to note that employers must comply with social security regulations and employer contributions. These contributions are used to finance social security programs and benefits to which employees are entitled, such as health insurance, family allowances and pensions.
Labor law is a complex and constantly evolving field. Laws and regulations can vary depending on many factors, such as country, region, industry and collective bargaining agreements. It is therefore essential to benefit from the advice of an expert who can guide you and inform you of your rights and obligations as an employee.
An employment lawyer will be able to help you understand the legal implications of your specific situation, whether it concerns your working conditions, benefits, dismissal procedures or any other aspect of your employment.
What's more, our labor relations attorneys keep abreast of the latest developments in legislation and case law, enabling them to provide you with up-to-date, relevant advice. They can also help you understand the legal provisions and collective agreements applicable to your situation, to ensure that your rights are respected.
Our firm brings together a team of highly qualified partner lawyers, each specialized in his or her own jurisdiction. Whether you need expertise in employment law, business law or any other area of law, we have the skills to support you. every employee in Israel.
