Global Hirings

October 9, 2023

3 mins

Exploring Business Opportunities in Israel

Israel holds great promise for investors and individuals from abroad aiming to broaden their ventures within the region. The nation has achieved a notable ranking of 35th in the Ease of Doing Business Index, as assessed by the World Bank. Additionally, it has secured the 12th position globally for the highest number of start-up businesses. Consequently, Israel's labor market is on an upward trajectory to cater to the escalating demands of its burgeoning business landscape.

Employing in Israel

Acquiring an understanding of Israel's employment regulations is an essential measure when bringing employees on board in the nation.


Employee Contract

Employment agreements in Israel should be drafted in a language comprehensible to both employers and employees. While English is the prevailing choice, it is commonly utilized for this purpose.

Probation Period

In Israel, the length of the probation period is subject to the employer's judgment, though typically it may extend up to 12 months.

Employee Leaves

● Annual Leave — 16 days

● Sick Leave 18 — days

● Maternity Leave — 26 weeks

Bonus — 13th Month Pay

In Israel, offering a 13th-month payment is not obligatory. Nevertheless, a significant number of employers in the country opt to provide their employees with a 13th-month payment.

Employee Benefits

Benefits for Israeli employees may include the following:

● Health Insurance

● Pension

● Transportation Allowance

● Convalescence Pay


The Standard VAT rate in Israel is 17%

Termination Process

Termination is conducted on the grounds of legitimate justifications and in accordance with legal mandates. This encompasses a hearing procedure where the rationale is elucidated, and the verdict is communicated in written form. It is advisable to furnish a termination letter in person, ideally within 48 hours subsequent to the hearing process.

Notice Period

Notice period for employees in Israel is given as per the table below:

1st year — 1 day for every month worked

2nd year — 14 days

3rd year — 21 days

After 3 years — 1 month

Severance Pay

Employees are eligible for severance pay once they have completed a year of service. The compensation is determined by multiplying one month's salary by the number of years of employment.

Visa and Immigration

Foreign workers in Israel are required to seek a work visa through the Israeli Ministry of Interior.


Employers must obtain a work permit on behalf of their employees to ensure their legal authorization to work within the country.


📬 Receive our amazing posts straight to your inbox. Get the latest news, company insights, and Niural updates.

Thank you! Your message has been received!
Oops! Something went wrong. Please fill in the required fields and try again.

If you're considering hiring employees or contractors in Israel or seeking compliant payroll solutions, reach out to us or book a demo at For further insights, follow us on Twitter @niuralhq. Make informed decisions and ensure a successful hiring process in Israel!

Request a demo