Israel EOR & PEO

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EOR in Israel

Horizons ensures day-to-day guidance to help your business navigate Israel labor laws and regulations. Horizons also ensures payroll is processed weekly or fortnightly (the standard periods in Israel ), and that taxes are withheld as required. As the Israel Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Israel Tax Office. Partnering with our Israel EOR is the quickest and most cost-effective way to enter the Israel market. Note, a Israel Employer of Record is also known as a Israel Professional Employer Organization (PEO).

Facts & Stats

stay compliant with Israel labor laws

Employment Laws

Employment contracts in Israel

While it is not legally required, we strongly recommend always producing written contracts of employment for all of your employees in Israel. These contracts should be written in Hebrew, use the Israeli shekel currency, and include details such as parental leave, vacation allowance, salary/wage, and other relevant details.

By partnering with our Israel EOR, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.

Fixed-term

Indefinite

Working hours in Israel

The standard working week in Israel is Sunday to Thursday, as Jewish people do not work on Saturdays and businesses must apply for a permit to allow it.

The maximum number of working hours is 43, with no more than nine hours per day. Any hours worked in excess of these limits must be compensated at overtime rates, which are 25% extra for the first two hours and 50% extra for any more than two, or any work on the Sabbath (Saturday).

Public holidays in Israel

There are several public holidays celebrated in Israel. Most are affiliated with Judaism, so non-Jews will usually not celebrate them:

Holiday Schedule in Israel [2024]

Israel has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
22 Apr Thursday	Passover (Day 1)
29 Apr Wednesday	Passover (Day 7)
14 May Wednesday	Yom HaAtzmaut
12 Jun Friday	Shavuot
3 Oct Saturday	Rosh Hashana
4 Oct Sunday	Rosh Hashana (Day 2)
12 Oct Monday	Yom Kippur
17 Oct Saturday	Sukkot (Day 1)
23 Oct Saturday	Shemini Atzeret / Simchat Torah

Israel vacation leave

Workers in Israel are legally entitled to a certain amount of paid vacation leave each year. The number of days varies based on length of employment, but ranges from 10 days to 23 days. Some employers may choose to offer more days as part of their benefits packages.

Israel healthcare system

Israel sick leave

Workers in Israel can accrue 1.5 days of sick leave for every month of employment. This is unpaid for the first day of absence, then paid at 50% of normal pay for days two and three, then paid at 100% of normal pay for the following days. Many employers choose to offer more generous sick leave but it is not legally required. After working with an employer for over a year, workers also qualify for a daily convalescence payment for a limited number of days.

Parental leave in Israel

Female employees who have worked for over six months with their employer can take seven weeks of leave at 100% of normal pay, and their position must be retained by the company. After ten months of employment, they are entitled to 14 weeks of leave, and seven weeks can be taken in advance of the birth.

Fathers can take eight days of leave (five paid by employer and three taken from vacation leave), after their child has been born.

Taxation in Israel

Employees and their employers in Israel must pay toward national insurance and health insurance funds. The contributions are 12% of salary for employees and 6.75% for employers. Income tax is progressive in Israel, with rates ranging from 10% to 50% depending on income level. As of 2020, the corporate tax rate in Israel is 23%.

Health coverage in Israel

In Israel, healthcare is universal and workers can choose between four different levels of insurance. Some also choose to pay for private insurance, so employers may want to offer private insurance as a benefit for employees.

Terminations and severance in Israel

When employees are dismissed without proper cause in Israel, they are generally entitled to severance pay.

For terminations, notice must be given. In the first six months of employment, only one day of notice is required. For at least six months of employment, six days plus two and a half days for every month after the sixth month is required. After one year of employment, 30 days of notice is required.

Employees can usually offer severance instead of notice if they wish.

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Israel EOR can mitigate risk for foreign companies and provide guidance through this process.

hassle-free Israel compensation & benefits

Israel compensation and benefits

Compensation laws in Israel

As of Jan 2024, the minimum wage in Israel for someone working is ILS 6,597 per month.

Minimum Wage Country Comparison Chart	(Per month in USD)
Switzerland (Geneva)	$4,000
Italy	$2,255
Australia	$1996
Algeria	$156
Uzbekistan	$22

Benefit management in Israel

Building and running a benefits system for your employees in Israel can be complicated if you are unfamiliar with the country, its laws, and its customs. If you want to manage the setup independently, you should expect it to take weeks and potentially delay your expansion process.

Horizons can help you simplify this stage of your expansion by offering our tailored Israel EOR & benefit management outsourcing. We can provide expert advice on the best course of action and take care of your benefit setup and management, helping you focus solely on your Israel expansion.

Israel Employer Of Record Peo

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EOR in Israel

Employment Laws

Israel healthcare system

Israel compensation and benefits

Frequently asked questions

Hire borderless talent with Horizons

Hire in Israel in 24h without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

Frequently asked questions

What is the difference between an Israel PEO and an Israel EOR?

Generally speaking, the terms “Israel PEO” and “Israel EOR” are used interchangeably.

Can an EOR in Israel hire both local and foreign nationals to work in Israel ?

An EOR in Israel can feasibly hire both local and foreign nationals to work in Israel.

However, the ability of Horizons to sponsor your foreign national employee in Israel may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' Israel EOR service take to hire an employee?

In most cases, Horizons’ Israel EOR can hire & onboard your employee within 12 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Israel.

Is it possible to get a work visa in Israel ?

It is possible to get a work visa in Israel. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Israel are limited, however—get started today to secure your employees’ visa spot.

Israel EOR & PEO

Start hiring in Israel

Simple, compliant hiring with Horizons EOR

EOR in Israel

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stay compliant with Israel labor laws

Employment Laws

Employment contracts in Israel

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Israel

Public holidays in Israel

Israel vacation leave

Israel healthcare system

Israel sick leave

Parental leave in Israel

Taxation in Israel

Health coverage in Israel

Terminations and severance in Israel

hassle-free Israel compensation & benefits

Israel compensation and benefits

Compensation laws in Israel

Benefit management in Israel

Hire in Israel in 24h without your own local entity.

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