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Employer of record in Israel

30 sourced figures on hiring in Israel, drawn from 11 sources and normalized for comparison: statutory rules, employer cost and exactly what an EOR covers locally. Every figure is dated.

ISO ILRegion AsiaCurrency ILSLanguages Arabic, HebrewVerified 2026-10-16

Hiring here: moderately complex, on the pricier side, and fast to hire via EOR.

cost of employment
HIGH
36.1% tax and mandatory contributions wedge, 23% corporate tax
ease of exit
MODERATE
moderate worker protection (2.83 / 6)
speed to hire
DAYS
39 EOR providers, from $199/mo
Employer burden rank
statutory employer burden: cost, severance, notice
#95 of 192
Each band is derived from the 30 sourced fields below and recomputed on every refresh. See the methodology.
Statutory snapshot

Employer of record in Israel: the statutory snapshot

The headline employer costs, pay floor and worker protections for hiring in Israel through an employer of record, each figure sourced and dated. 39 EOR providers cover Israel.

Minimum wageILS 6,444/moNational government, 2026-04-01
Employer social security20.1%Manual / editor, 2026-01-01
Tax and mandatory contributions wedgeOECD, taxes plus non-tax compulsory payments such as mandatory private pension and health contributions36.1%OECD
Corporate tax23%OECD
Average income tax12.66%OECD
Notice period4.3 weeksWorld Bank Employing Workers / B-READY, 2019-05-01
Severance23.1 weeksWorld Bank Employing Workers / B-READY, 2019-05-01
Maternity leave15 weeksNational government, 2026-09-12

As of 2026-10-16. Each value is the winning figure from primary and harmonized sources, resolved by a documented priority chain. Full record with provenance below.

Reading the data

What the figures say about Israel

Israel's statutory minimum wage is ILS 6444 per month, set against an average annual wage of $57426 per year. Employers pay a social security rate of 20.1% on top of salary, while employees contribute 18.17%, and the tax and mandatory contributions wedge sits at 36.1%. The statutory normal working week is 42 hours per week, though actual weekly hours worked are 38 hours per week. Exit costs include a statutory severance of 23.1 weeks and a statutory notice period of 4.3 weeks, and the employment protection score for regular contracts is 2.91 on a 0-6 scale. Maternity leave is 15 weeks and paternity leave is 1 weeks, while parental leave is none (0 weeks). The top personal income tax rate is 50%, and no 13th salary is required.

Written from the 28 sourced figures on this page and regenerated whenever the data changes. Last generated 2026-10-11. How our data works is on the methodology page.

Where to start

Three ways to hire in Israel

Own entity

You are the employer. Lowest per head cost at scale, months to establish.

Best for large, permanent headcount.
EORfastest

You direct the work, the provider's local entity is the employer on paper. Compliant in days.

See the 39 providers below ↓
Best for 1 to 50 hires, for speed, or to test a market.
Contractor

Not your employee. Fastest and cheapest, with misclassification exposure.

Best for genuinely independent, short term work.
Compare entity setup cost against EOR fees for Israel →

The full record

Every figure behind the snapshot

Not a guide, a record: 30 figures for Israel from 11 sources, last refreshed 2026-10-16. Each value carries its source and the date it was pulled. Hover any provenance tag for the full chain.

employment & pay7 fields
Minimum wage
ILS 6,444/mo
National government · 2026-04
Average monthly wage
ILS 10,928/mo
ILOSTAT · 2021-01
Average wage
$57,426/yr
OECD · 2025-01
13th salary
None
National government · 2026-01
Hours worked
1,870 hrs/yr
OECD · 2025-01
Statutory weekly hours
42 hrs/wk
Statutory working time (national labour law) · 2018-01
Actual weekly hours
38 hrs/wk
ILOSTAT · 2024-01
cost & taxes7 fields
Employer social security
20.1%
Manual / editor · 2026-01
Employee social security
18.17%
Manual / editor · 2026-01
Tax and mandatory contributions wedgeOECD, taxes plus non-tax compulsory payments such as mandatory private pension and health contributions
36.1%
OECD · 2025-01
Corporate tax
23%
OECD · 2025-01
Average income tax
12.66%
OECD · 2025-01
Top income tax rate
50%
PwC Worldwide Tax Summaries · 2026-06
VAT / GST
18%
PwC Worldwide Tax Summaries · 2026-06
termination5 fields
Protection (EPL overall)
2.83 / 6
OECD · 2024-01
Protection (regular contracts)
2.91 / 6
OECD · 2024-01
Protection (temporary contracts)
1.10 / 6
OECD · 2024-01
Severance
23.1 weeks
World Bank Employing Workers / B-READY · 2019-05
Notice period
4.3 weeks
World Bank Employing Workers / B-READY · 2019-05
leave3 fields
Maternity leave
15 weeks
National government · 2026-09
Paternity leave
1 weeks
National government · 2026-09
Parental leave
None
OECD Family Database · 2024-01
labour market8 fields
Unemployment
3.09%
OECD · 2026-01
Inflation
3.04%
World Bank Open Data · 2025-01
GDP per capita
$60,337
World Bank Open Data · 2025-01
GNI per capita
$56,180
World Bank Open Data · 2025-01
Labour force
4.8M people
World Bank Open Data · 2025-01
Collective bargaining coverage
45.8%
OECD/AIAS ICTWSS · 2023-01
Union density
27.2%
OECD/AIAS ICTWSS · 2023-01
Retirement age
64.5 yrs
OECD Pensions at a Glance · 2024-01
Salary by occupation

Average monthly earnings in Israel by occupation (2021)

Gross monthly earnings of employees per ISCO-08 major occupation group, in ILS — the official ILOSTAT survey figures, not estimates. Use them to sanity-check an offer before an EOR quote turns it into total employer cost.

Occupation groupMonthly (ILS)≈ USD
All occupations10,928$3,383
Managers · ISCO 120,464$6,335
Professionals · ISCO 215,500$4,798
Technicians and associate professionals · ISCO 311,029$3,414
Clerical support workers · ISCO 47,398$2,290
Service and sales workers · ISCO 55,875$1,819
Skilled agricultural, forestry and fishery workers · ISCO 68,185$2,534
Craft and related trades workers · ISCO 79,487$2,937
Plant and machine operators and assemblers · ISCO 89,285$2,874
Elementary occupations · ISCO 95,128$1,588

Source: ILOSTAT (EAR_EMTA, employees, both sexes), reference year 2021. Survey earnings differ from statutory minimums above.

Take-home estimate

What the average salary takes home in Israel

The employee keeps an estimated 69% of gross at the average wage. For an employer, this is the gap between the offer you quote and what your hire actually receives.

Average gross monthly earnings (2021)ILS 10,928
Employee social contributions (18.2%)− ILS 1,986
Income tax (avg. effective 12.7%)− ILS 1,384
Estimated monthly take-homeILS 7,559

Illustration at the ILOSTAT average wage using statutory rates (Manual / editor; OECD) applied to gross pay. Individual allowances, deductions and regional rates vary — not tax advice.

// recent updates

What changed in Israel

Checked against official sources on 27 September 2026

No rule changes recorded since we began logging them.

Every figure is sourced and dated. How we verify the data →

The differentiator

What an EOR handles in Israel

An EOR removes the entity and the payroll machinery. It does not remove your obligations as the people manager.

obligationeor coverswhat that means for you
Legal employer of record● fullThe EOR's local entity is the employer on paper. No entity setup required.
Payroll, tax & social security● fullGross-to-net, statutory withholding and employer contributions remitted locally. Employer social security here is 20.1%.
Compliant local contract● fullDrafted to local labour law and language requirements. Here statutory notice is 4.3 weeks and the wage floor is ILS 6,444/mo.
Statutory leave & public holidays● fullAccrual, tracking and payment run through the local payroll the EOR operates. 15 weeks maternity leave.
Statutory severance on exit● partialThe EOR computes and processes it, but the cost is billed to you (often pre-funded). Statutory severance here is 23.1 weeks.
Termination decision & risk● partialThe EOR runs the legal process; the business reason, timing and exposure stay yours. Worker protection here scores 2.83 / 6 on the OECD index.
Work permits / visas (foreigners)● partialSome providers sponsor, many don't. Confirm per provider in the table below.
Performance management● noneDay-to-day direction, reviews and PIPs are entirely on your side.
Equity / ESOP administration● noneCross-border equity handling sits outside standard EOR scope.

Provider × country

Who can employ in Israel

39 providers operate an EOR in Israel, ranked by Select Score.

providerfrom / moselect score
Pebl (formerly Velocity Global) logoPebl (formerly Velocity Global)SELECT PICK$399/mo80
Multiplier logoMultiplier$459/mo · Core · billed annually80
Payoneer Workforce Management logoPayoneer Workforce Management$199/mo79
RemoFirst logoRemoFirst$199/mo78
Remote logoRemote$699/mo76
Globalization Partners logoGlobalization Partners$599/mo75
Remote People logoRemote People$199/mo74
Deel logoDeel$599/mo73
Show all 39 providers ↓
Rivermate logoRivermate$319/mo72
Borderless AI logoBorderless AI$579/mo71
Playroll logoPlayroll$399/mo71
Papaya Global logoPapaya Global$499/mo68
Lano logoLano€499/mo66
Teamed logoTeamed$599/mo66
Rippling logoRipplingQuote66
Thera logoTheraQuote65
Oyster logoOyster$699/mo65
Asanify logoAsanifyQuote65
Atlas HXM logoAtlas HXM$599/mo62
Foxhire logoFoxhireQuote61
GoGlobal logoGoGlobalQuote60
Dhi ADT logoDhi ADT€449/mo60
Aspirock logoAspirockQuote59
WTS Energy logoWTS EnergyQuote59
Agility EOR logoAgility EOR$599/mo59
HSP logoHSPQuote59
Cadana logoCadanaQuote58
Alariss logoAlarissQuote56
Justworks logoJustworksQuote55
CWS Israel logoCWS Israel$599/mo55
39 providers operate an EOR in Israel, ranked by Select Score. Price is each provider’s lowest published EOR rate (global, not country-specific).
Scored by the EOR Select rating systemSee the methodology →Built and maintained by Robbin SchuchmannUpdated 2026-10-16

Comparing EOR options for Israel?

Run a side-by-side on the providers that actually operate there.

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