Israel · Employment & Labor

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

AI-drafted, editorially reviewed. Confirm specifics with the official authority.

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.

  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).

  • 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)

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.

Government portals

This topic in other countries

← Back to Israel