To hire new employees in
Israel
, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.
Borderless handles all of that for you, so you can focus on getting to work with your new team member in
Israel
while staying fully compliant with local laws and compliance.
Hebrew
Israeli new shekel (₪, ILS)
Monthly
11 days
20.64-28.58%
$$$$ (9 of 139 nations)
12 days
90 days
14 weeks
In many countries like
Israel
, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.
ILS 5,300 per month.
Standard working hours are 8.4 hours per day, 5 days a week. The standard workweek is from Sunday to Thursday. The standard workweek can be extended up to 42 hours per week.
Employees who are paid an hourly rate must be paid overtime. Because it is factored into their remuneration, employees with fixed incomes are exempt from overtime pay requirements. Overtime is defined as any time worked beyond the normal working day. Employees are only permitted to work a total of 12 hours of overtime per day and 16 hours per week. Employees are compensated for the first two hours of overtime at 125% of their hourly rate. Employees are paid 150% of their hourly rate for each hour after that.
There is no additional pay detail for Israel.
For Borderless customers, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
In Israel, employers are obligated to follow a fair and transparent process before terminating an employee. In order to continue with a termination in Israel, employers must give the employee a written notice of the hearing along with an invitation. At the hearing, the employee has the opportunity to react and the option of designating a counsel to argue their behalf. Employer must reevaluate the need for termination after taking into account all the employee mentioned during the hearing. Companies should seek legal advice before terminating employees in Israel.
For each month of employment within the first six months, one day of notice is accrued. 2.5 days of notice are accrued for each month of employment from the sixth month to the conclusion of the first year, in addition to the six days already accrued. A 30-day notice is needed to terminate an agreement after the first year.
Israel formally permits probationary periods, which often last a few months. During the probationary term, employees are to be treated as full employees and get all benefits, but employers have more flexibility in dismissing probationary employees than they do more tenured workers.
In Israel, severance pay is equal to one month's pay for each year of employment. Less than a year of employment does not qualify an employee for severance pay. The employee's average monthly compensation over the previous 12 months is utilized to determine the severance payment. Some firms increase the employee's monthly salary by 8.33% as a severance component.
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:
Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.