🇮🇱 Israel · Employment & Labor

Hiring rules, employment contracts, payroll, social insurance, and EOR options.

Quick answer

Israeli employment is governed by a set of laws and extension orders rather than one code: a national minimum wage, mandatory pension contributions, severance pay of about a month per year, recuperation pay, and paid annual and sick leave. Dismissal needs a fair hearing, and the Labour Courts handle disputes.

Employment is governed by a body of statutory labour law and extension orders; a national minimum wage applies and pension contributions are mandatory.

  • A national minimum wage applies to employees.
  • Mandatory pension contributions and severance arrangements apply.
  • Written notice of employment terms must be given to employees.

Step-by-step

  1. 1

    Get written terms

    By law you must receive written notice of your employment terms (pay, role, hours, pension) within 30 days.

  2. 2

    Know your pay and hours rights

    You must receive at least the minimum wage; the standard week is being reduced toward 42 hours, with overtime premiums.

  3. 3

    Understand mandatory pension and benefits

    Employers must contribute to a pension arrangement, and you receive recuperation pay (dmei havraa) and paid holidays.

  4. 4

    Understand leave

    You accrue paid annual leave (rising with seniority) and paid sick days, plus convalescence pay after qualifying service.

  5. 5

    Know severance and dismissal rules

    Dismissal requires a fair hearing (shimua); severance pay of about a month's salary per year is generally due on dismissal.

  6. 6

    Resolve disputes

    Raise issues via the employer/union and, if unresolved, the Labour Courts (Beit Din La’avoda).

Checklist

  • Written notice of terms (within 30 days)
  • Minimum wage + week (toward 42h) + overtime
  • Mandatory pension contributions
  • Recuperation pay (dmei havraa)
  • Paid annual + sick leave
  • Fair hearing (shimua) before dismissal
  • Severance (~1 month/year)
  • Dispute route (Labour Courts)

Official authorities

Frequently asked questions

Is there severance pay in Israel?

Yes — generally about one month's salary per year of service, often funded through the pension arrangement.

Is Israel an at-will jurisdiction?

No — dismissal requires a genuine reason and a fair hearing; unfair dismissals can lead to compensation.

What is recuperation pay (dmei havraa)?

An annual convalescence payment employers must make after qualifying service, on top of wages.

Official-information aggregation, not legal advice. Always verify on the authority's own site.

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