Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, 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


while staying fully compliant with local laws and compliance.

Primary Language



Israeli new shekel (₪, ILS)

Payroll Frequency


Public Holidays

11 days

Employer Taxes


Cost of Living Index

$$$$ (9 of 139 nations)

Statutory Leave

12 days

Sick Leave

90 days

Maternity Leave

14 weeks

Important: Risks of misclassification

In many countries like


, 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.

Payment Information

Minimum Wage

ILS 5,300 per month.

Overtime Pay

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.

Additional Pay

There is no additional pay detail for Israel.

Payroll Cycle

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.

Employer Costs & Taxes

  • 3.55%: Social Security (up to a monthly income of ILS 7,122)
  • 7.60%: Social Security (on the difference between ILS 7,122 and the maximum monthly income of ILS 47,465)
  • 8.33%: Severance Pay
  • 6.50%: Pension Fund

Employee Costs & Taxes

  • 0.40%: Social Security (on the first ILS 7,122 of income per month) 
  • 7.00%: Social Security on the difference between ILS 7,122 and the maximum monthly compensation amount of ILS 47,465.)
  • 3.10%: Health Insurance (on the first ILS 7,122 )
  • 5.00%: Health Insurance (on the difference between ILS 7,122 and the maximum monthly compensation amount of ILS 47,465)
  • 6.00%: Pension Fund

Employment Information

Termination Process

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.

Notice period

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.

Probation Period

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.

Severance Details

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.

Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo