Acvian Introduces HR Plus, an End-to-End Workforce Management Solution for Your Business
Business with limited resources should consider an outsourced HR service provider who either supplements their in-house team or fully handles HR responsibilities in the absence of such.
Acvian Introduces HR Plus, an End-to-End Workforce Management Solution for Your Business
Business with limited resources should consider an outsourced HR service provider who either supplements their in-house team or fully handles HR responsibilities in the absence of such.
Acvian Introduces HR Plus, an End-to-End Workforce Management Solution for Your Business
Business with limited resources should consider an outsourced HR service provider who either supplements their in-house team or fully handles HR responsibilities in the absence of such.
As your Employer of Record (EOR) in Israel, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Israel's economy is a highly developed, modern economy, with a strong technology sector. The country has a diverse labor market, with significant employment in fields such as high-tech, healthcare, and education. Employment regulations are in place to ensure workers' rights, including minimum wage laws, paid leave entitlements, and a national health insurance system.
Employment Contracts
In Israel there are 3 types of employment agreements:
Fixed-term Employment Contracts
Indefinite, Open-ended Employment Contracts
Collective Bargaining Agreements (CBAs)
Probation Period
New employees may work a probationary period ranging from 1 to 3 months, depending on the terms of their contract or collective agreement.
Working Hours
A full workweek consists of 42 hours, typically Sunday through Thursday. Regular working days are 8.1 hours, with a 30-minute break.
Vacation Days
Employees working five days a week are entitled to 12 net vacation days for the first five years.
From the sixth year onward: 14 net vacation days for the 6th year, 15 days for the 7th, 16 days for the 8th, and an additional day each year, up to 20 days after 12 years.
Sick Leave
For the first day of sick leave, employees are not paid.
On the second and third days, employees are entitled to 50% of their regular pay.
From the fourth day onward, employees are entitled to 100% of their regular pay.
Wages and Salary Payment
The payroll cycle is monthly, and salaries are paid no later than the 7th day of the following month.
Minimum wage (since 2024): NIS 5,880 gross per month.
Public Holidays
There are 6 national holidays in Israel: Rosh Hashana (2 days), Sukkot (2 days), Yom Kippur, Passover (2 days), Shavuot, and Independence Day.
There is no substitute holiday system, and holiday eves are typically half days for employees.
Employer Taxes
Employers contribute to Social Security, with contributions varying by income brackets.
Employers also contribute to various funds like the pension fund (6.5%) and severance fund (8.33%).
Employee Taxes
Employees must contribute 6% to the pension fund and 8.33% to the severance fund.
Contributions to National Health Insurance are deducted from employees' salaries.
Notice Period
For termination within the first year, the notice period is 1 day for each month worked, with a maximum of 6 days in the first year.
After the first year, 30 days' notice is required for termination.
Termination and Severance Pay
Severance pay is calculated at 1 month's salary for every year worked. If the employer contributes 8.33% of the salary to a severance fund each month, no additional severance is required upon termination.
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