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Updated 10 Sep 2026

Labour Law Rates and Amounts in Israel

Every figure that changes from time to time, in one place: minimum wage, overtime and rest, recuperation pay, travel, pension, National Insurance, income tax and termination. Each value comes with its official source and, wherever verified, its effective date and change history.

  • 49 statutory figures
  • 9 verified rules
  • 6 tables
  • An official source for every figure
A work desk with a closed laptop, a notebook and a glass of water, with a wall clock behind
Minimum wage ILS 6,443.85
AI summary · what matters on this page+Click to read the page summary

As of 10 Sep 2026: the minimum wage is ILS 6,443.85 a month and ILS 35.40 an hour; a full working week is 42 hours; overtime is paid at 125% and then 150%; the pension deposit is 18.5% of insured salary; and employee National Insurance rises from 4.27% to 12.17% above ILS 7,703. Every figure on this page comes with its official source and, wherever verified, its effective date and change history.

The key numbers at a glance

Click a card to jump to the full explanation.

6,443.85ILS per monthMonthly minimum wage35.40ILS per hourHourly minimum wage42hours a weekFull working week125%then 150%Weekday overtime36consecutive hoursWeekly rest150%of the regular wage, at leastWork on the weekly rest day9thof the following monthSalary payment deadline22.60ILS per dayTravel-reimbursement cap451.50ILS per dayRecuperation pay, per day18.5%of insured salaryMonthly pension deposit7,703ILS per monthReduced-rate threshold242ILS per monthTax credit point1month's salary per yearSeverance pay9days a yearPaid public holidays13,769ILS per monthAverage wage in the economy
01

Minimum Wage and Pay Dates

The monthly and hourly minimum, and the payment deadline

The minimum wage applies to every employee in Israel, whether full-time or part-time. The full guide is at Minimum Wage in Israel 2026, and pay dates and wage safeguards are set by the Wage Protection Law. Want to know what is left after tax? Try the income tax and National Insurance calculator, and employers can use the employer cost calculator to see what an employee really costs.

Wage payment date

  • A monthly wage is due to the employee at the end of the month for which it is paid (section 9 of the Wage Protection Law).
  • The final payment date is the 9th of the following month, the “determining day”. If the 9th falls on a Sabbath or holiday, payment is made before it.
  • Wages not paid by then are “delayed wages”, and the employee is entitled to delayed-wage compensation: 5% for the first week after the payment date and 10% for each additional week, or linkage differentials plus 20% per month, whichever is higher. The Labour Court may reduce the compensation.
  • For an employee paid hourly, daily or by output, the law sets a different payment date (section 10).

The law and the full explanation on our site: Wage Protection Law

Sources: Kol Zchut · Wage Payment Date · Kol Zchut · Delayed-Wage Compensation

Monthly minimum wage

6,443.85ILS per month

In force from 1 Apr 2026 · verified 10 Sep 2026

Change history · 9 values
ValuePeriod in forceSource
6,443.85From 1 Apr 2026 · in force nowKol Zchut · National Insurance Institute (Bituach Leumi)
6,247.671 Apr 2025 – 31 Mar 2026Kol Zchut · National Insurance Institute (Bituach Leumi)
5,880.021 Apr 2024 – 31 Mar 2025Kol Zchut · National Insurance Institute · Annual Circular 2024
5,571.751 Apr 2023 – 31 Mar 2024Kol Zchut · National Insurance Institute · Annual Circular 2023
5,3001 Dec 2017 – 31 Mar 2023Kol Zchut · National Insurance Institute · Annual Circular 2023
5,0001 Jan 2017 – 30 Nov 2017Kol Zchut
4,8251 Jul 2016 – 31 Dec 2016Kol Zchut
4,6501 Apr 2015 – 30 Jun 2016Kol Zchut
4,3001 Oct 2012 – 31 Mar 2015Kol Zchut

Hourly minimum wage

35.40ILS per hour

In force from 1 Apr 2026 · verified 10 Sep 2026

Change history · 7 values
ValuePeriod in forceSource
35.40From 1 Apr 2026 · in force nowKol Zchut · National Insurance Institute (Bituach Leumi)
34.321 Apr 2025 – 31 Mar 2026National Insurance Institute · Minimum Wage Table
32.301 Apr 2024 – 31 Mar 2025Kol Zchut · National Insurance Institute (Bituach Leumi)
30.611 Apr 2023 – 31 Mar 2024Kol Zchut
29.121 Apr 2018 – 31 Mar 2023Kol Zchut
28.461 Dec 2017 – 31 Mar 2018Kol Zchut
26.881 Jan 2017 – 30 Nov 2017Kol Zchut

Final payment date for monthly wages

9of the following month

Legal basis: Section 9 of the Wage Protection Law (the “determining day”)

Wages are due at the end of the month, and the 9th of the following month is the final payment date. If the 9th falls on a Sabbath or holiday, payment is made before it.

Source: Kol Zchut · Wage Payment Date

02

The Average Wage

Three different “averages”, and what each one is used for

“The average wage” is not a single number. National Insurance publishes one figure for calculating contributions and ceilings and another for updating benefits, and the Central Bureau of Statistics publishes a third, statistical figure. The contributions figure is also the basis for the ceiling on employee pension contributions.

Average wage · basis for contributions and ceilings (section 2)

13,769ILS per month

In force from 1 Jan 2026 · verified 10 Sep 2026

It is also the “average wage in the economy” in the Israel Tax Authority table, and the ceiling for mandatory pension.

Source: National Insurance Institute · Section 2 · Israel Tax Authority · Payroll Tax Calculation Aid Table 2026

Average wage · basis for benefit updates (section 1)

13,566ILS per month

In force from 1 Jan 2026 · verified 10 Sep 2026

Used only to update benefit payments. It is not the basis for insurance contributions and is not a CBS (Central Bureau of Statistics) figure.

Source: National Insurance Institute · Section 1 of the National Insurance Law

Average wage per salaried position (CBS)

13,623ILS per month

In force from 1 Jan 2026 · verified 10 Sep 2026

A statistical indicator updated monthly. Not used to calculate entitlements.

Source: Kol Zchut · Central Bureau of Statistics

03

Working Hours

The working day, week and month, and the caps

A wall clock without numerals above an empty desk

The framework is set by the Hours of Work and Rest Law and by the extension order that shortened the working week. The quota of 182 hours a month is used to derive an hourly rate from a monthly salary.

Working-hours caps

  • A working day, including overtime, may not exceed 12 hours.
  • Under the General Permit for Overtime Employment of 2018, an employee may be employed for up to 16 overtime hours a week, in both a 5-day and a 6-day working week, for a total of up to 58 hours (42 regular plus 16 overtime).
  • Exceeding these quotas requires a permit from the Ministry of Labour (section 11 of the Hours of Work and Rest Law).

The law and the full explanation on our site: Hours of Work and Rest Law

Sources: Kol Zchut · Limits on Overtime Employment · gov.il · Application for a Permit for Overtime and Weekly-Rest Employment

Standard working week (economy-wide)

42hours

In force from 1 Apr 2018 · verified 10 Sep 2026

Change history · 2 values
ValuePeriod in forceSource
42From 1 Apr 2018 · in force nowKol Zchut · Extension Order Shortening the Working Week
431 Jul 2000 – 31 Mar 2018gov.il · Extension Order, Framework Agreement 2000

Monthly hours quota for calculating an hourly rate

182hours per month

In force from 1 Apr 2018 · verified 9 Sep 2026

Source: Minimum Wage Law, 5747-1987 – the hourly rate is defined as the monthly wage divided by 182 (the hours quota since the working week was shortened in 2018)

Working day · 5-day working week, private sector

8:36hours (7:36 on the shortened day)

In force from 1 Apr 2018 · verified 10 Sep 2026

Source: Kol Zchut · Working Day and Working Week

Working week · public sector

40hours

In force from 1 Sep 2024 · verified 10 Sep 2026

Source: Kol Zchut · Working Day and Working Week

Weekly maximum including overtime

58hours

In force from 1 Apr 2018 · verified 10 Sep 2026

42 regular hours plus 16 overtime hours.

Source: gov.il · Ministry of Labour · Employment and Rest Definitions

Weekly overtime quota

16overtime hours

In force from 1 Apr 2018 · verified 10 Sep 2026

The same for a 5-day and a 6-day working week.

Source: gov.il · Ministry of Labour · Employment and Rest Definitions

Daily maximum including overtime

12hours per day

Legal basis: General Permit for Overtime Employment

Source: Kol Zchut · Limits on Overtime Employment · gov.il

Hiring in Israel? We handle all of this for you

NETO employs your team in Israel as a licensed manpower contractor and handles payroll, payslips, pension contributions and social benefits, so you do not need to know every clause of Israeli law or track every change in rates and case law.

  • Payslips and contributions at the current statutory rates
  • Recuperation pay, leave, sick days and travel, calculated for you
  • Ongoing updates on legislation, extension orders and case law
04

Overtime and Weekly Rest

125%, 150%, the rest day and work permits

A cup of coffee and fruit on a wooden balcony table on a rest-day morning

This section covers how overtime pay is calculated and when an employee may be employed on the weekly rest day at all.

The overtime rule

  • On a regular working day: 125% of the regular wage for the first two overtime hours, and 150% from the third overtime hour onwards (section 16 of the Hours of Work and Rest Law).
  • An employee who has completed the regular weekly quota of hours and also works during the weekly rest is entitled to the rest-day overtime rate from the first hour.

The law and the full explanation on our site: Hours of Work and Rest Law

Sources: Kol Zchut · Overtime Premium

The weekly rest

  • Every employee is entitled to a weekly rest of at least 36 consecutive hours (section 7 of the law).
  • For a Jewish employee, the rest includes the Sabbath. For a non-Jewish employee: Saturday, Friday or Sunday, whichever they customarily observe as their rest day.
  • The rest day must be specified in the Notice to Employee on Terms of Employment (section 2(a)(7) of the Notice to Employee Law). It is advisable to also define the start and end times of the rest period: according to case law, without such a definition, work on Saturday night may be considered work during the rest period.

The law and the full explanation on our site: Hours of Work and Rest Law

Sources: Kol Zchut · Weekly Rest · Kol Zchut · Notice on Terms of Employment

Work on the rest day: when it is permitted and how much is paid

  • Employing an employee during the weekly rest is prohibited, except with a permit from the Minister of Labour under section 12 of the law, for example when stopping work would harm security, the economy, a continuous work process or essential services. The request is submitted to the Ministry of Labour, using the official form, and, from September 2026, by logging in through the national identification system.
  • Work during the rest period entitles the employee to at least 150% of the regular wage (section 17). A monthly-salaried employee receives a 50% supplement for every hour worked during the rest period, on top of their salary.
  • Overtime hours worked during the rest period: 175% for the first two overtime hours and 200% from the third hour onwards. This is not explicitly stated in the statute: it is a rule established by the National Labour Court, which adds the rest-day premium (50%) to the overtime premium (25% or 50%).
  • The law does not apply to employees in management positions or positions requiring a special degree of personal trust, or to employees whose working hours cannot be supervised (section 30).

The law and the full explanation on our site: Hours of Work and Rest Law · Israeli labour law at a glance

Sources: gov.il · Application for a Permit for Weekly-Rest Employment · Kol Zchut · Premium for Employment During the Weekly Rest · Kol Zchut · Overtime Premium (Labour Appeal 38313-03-18)

Overtime pay on a weekday

125%, then 150%of the regular wage

Legal basis: Section 16 of the Hours of Work and Rest Law

125% for the first two overtime hours in a day, 150% from the third overtime hour onwards.

Source: Kol Zchut · Overtime Premium · Section 16 of the Law

Pay for work during the weekly rest

150%of the regular wage, at least

Legal basis: Section 17 of the Hours of Work and Rest Law

A monthly-salaried employee receives a 50% supplement for every hour worked during the rest period, on top of their salary. Employment during the rest period is permitted only with a permit under section 12.

Source: Kol Zchut · Premium for Employment During the Weekly Rest

Overtime pay on a rest day or holiday

175%, then 200%of the regular wage

Legal basis: National Labour Court case law · Labour Appeal 38313-03-18

Not explicitly stated in the statute. According to National Labour Court case law, the rest-day premium (50%) is added to the overtime premium (25% or 50%): 175% for the first two overtime hours on a rest day, 200% from the third hour onwards.

Source: Kol Zchut · Overtime Premium (Labour Appeal 38313-03-18)

Minimum weekly rest

36consecutive hours

Legal basis: Section 7 of the Hours of Work and Rest Law

For a Jewish employee it includes the Sabbath. For a non-Jewish employee: Saturday, Friday or Sunday, according to their custom.

Source: Kol Zchut · Weekly Rest

05

Annual Leave, Sick Leave and Holidays

Leave by seniority, sick-day accrual and paid holidays

An empty office chair with a jacket and glasses by a window on a day off

Annual leave, sick leave and paid holidays depend on seniority and on whether the employee works full-time or part-time. The full overview of social benefits is at Employee Rights in Israel.

Annual leave days · extension order, 5-day working week

12–23 paid leave days

Effective date being verified

Whichever is higher applies: the statute or the extension order. For example, an employee with 9 years of seniority on a 5-day week is entitled to 23 days under the extension order, compared with 17 under the statute (the statute reaches 20 days only from 12 years of seniority).

Seniority (years)Gross daysNet days (paid)
1–51612
6–82317
9 or more3123

Source: Kol Zchut · Calculating Leave Days, 5-Day Working Week

Annual leave days · statute, 5-day working week

12–20 paid leave days

Effective date being verified

Seniority (years)Gross daysNet days (paid)
1–51612
61814
72115
82216
92317
102418
112519
122620
132720
14 or more2820

Source: Kol Zchut · Calculating Leave Days, 5-Day Working Week

Annual leave days · statute, 6-day working week

14–24 paid leave days

Effective date being verified

Seniority (years)Gross daysNet days (paid)
1–51614
61816
72118
82219
92320
102421
112522
122623
132724
14 or more2824

Source: Kol Zchut · Calculating Leave Days, 6-Day Working Week

Sick-day accrual

1.5days per month

Effective date being verified

18 days per year, up to a maximum accrual of 90 days. Day 1 unpaid · days 2–3 at 50% · from day 4, 100%.

Source: Kol Zchut · Sick Pay

Paid holiday days per year

9days

In force from 1 Jul 2000 · verified 10 Sep 2026

A monthly-salaried employee receives their regular pay. An hourly- or daily-paid employee is entitled after 3 months of employment, provided they worked on the day before and the day after the holiday.

Source: Kol Zchut · Holiday Pay · Extension Order, Framework Agreement 2000, Section 7

06

Recuperation Pay and Travel

The daily recuperation rate, the travel cap and eligibility

The number of recuperation days depends on seniority, and the daily rate is set by an extension order. The full calculation by years of service is at Recuperation Pay in Israel.

Travel-reimbursement rules

  • An employee who needs transport to get to work is entitled to reimbursement at the discounted public-transport fare, up to the daily cap, for every day on which they actually came to work (sections 3 and 7 of the extension order). Sick days, leave days and work-from-home days do not count.
  • If a monthly pass (regional or national) is cheaper than the daily travel cost, the employer may pay on that basis. This is not an obligation, and it is not an additional right of the employee.
  • Minimum distance: The extension order does not set a distance. According to case law, someone who lives within 500 metres of the workplace is generally considered not to need transport (Labour Appeal 100/06). This presumption can be rebutted, for example where the employee has limited mobility.
  • Second bus: An employee who needs an additional bus is entitled to reimbursement for it as well, if they must ride it for at least 3 urban stops, subject to the daily cap (section 5).
  • Someone transported at the employer's expense is not entitled to reimbursement, and someone transported in only one direction is entitled to up to half the amount (section 6). Full explanation: Travel expense reimbursement for work.

The law and the full explanation on our site: Travel expense reimbursement

Sources: gov.il · Extension Order on Employer Participation in Travel Expenses (official text) · Kol Zchut · Travel Expense Reimbursement

Daily rate of recuperation pay (dmei havra'a) · private sector

451.50ILS per day

In force from 1 Jul 2025 · verified 10 Sep 2026

The rate for the recuperation-pay year that began on 1 Jul 2026 has not yet been published. The value shown is the one that was in effect until 30 Jun 2026.

Change history · 5 values
ValuePeriod in forceSource
451.501 Jul 2025 – 30 Jun 2026Kol Zchut · published retroactively on 18 Aug 2026
4181 Jul 2023 – 30 Jun 2025Kol Zchut · frozen by law for 2024–2025
3781 Jul 2014 – 30 Jun 2023Kol Zchut
3741 Jul 2013 – 30 Jun 2014Kol Zchut
3711 Jul 2012 – 30 Jun 2013Kol Zchut

Daily rate of recuperation pay (dmei havra'a) · cleaning and maintenance sector

512.12ILS per day

In force from 1 Jan 2026 · verified 6 Sep 2026

Source: Extension Order in the Cleaning Sector · Section 11 (verified against Kol Zchut, updated 23 Jun 2026)

Daily travel-reimbursement cap

22.60ILS per day

In force from 1 Feb 2016 · verified 10 Sep 2026

Change history · 2 values
ValuePeriod in forceSource
22.60From 1 Feb 2016 · in force nowKol Zchut · Extension Order on Travel Expense Reimbursement
26.40Until 31 Jan 2016 · start date being verifiedKol Zchut

Distance within which an employee is presumed not to need transport

500metres

Legal basis: Case law · Labour Appeal (National) 100/06

A presumption established by case law that can be rebutted, for example where the employee has limited mobility. The extension order itself does not set a distance.

Source: Kol Zchut · Judgment, Labour Appeal 100/06

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07

Pension and Study Fund

Contribution rates and ceilings

A jar of coins and a young seedling in a pot on a wooden table

Mandatory pension applies to every employee, and the rates are calculated on the insured salary up to the ceiling. The employer guide is at Employee Pension Contributions in Israel, and the severance component is explained in our guide to section 14 of the Severance Pay Law.

Mandatory pension · employee's share

6%

In force from 1 Jan 2017 · verified 10 Sep 2026

Mandatory pension · employer's savings component (tagmulim)

6.5%

In force from 1 Jan 2017 · verified 10 Sep 2026

Mandatory pension · employer's severance component

6%

In force from 1 Jan 2017 · verified 10 Sep 2026

Severance component within the pension contribution

8.33% (by law: 6%)

In force from 1 Jan 2014 · verified 1 Sep 2026

Source: Section 14 of the Severance Pay Law · NETO policy

Ceiling for mandatory pension

13,769ILS per month

In force from 1 Jan 2026 · verified 10 Sep 2026

Equal to the average wage under section 2.

Source: Kol Zchut · Mandatory Pension Insurance · National Insurance Institute

Ceiling for employer deposits to a pension provident fund (kupat gemel lekitzba)

34,423ILS per month

In force from 1 Jan 2026 · verified 10 Sep 2026

Above the ceiling, the value of the deposit is considered taxable employment income.

Source: Israel Tax Authority · Payroll Tax Calculation Aid Table 2026 · Section 3(e3)

Employee contribution to the study fund

2.5% of the qualifying salary

Effective date being verified

Source: Kol Zchut · Study Fund (Keren Hishtalmut)

Employer contribution to the study fund

7.5% of the qualifying salary

Effective date being verified

Not more than three times the employee's contribution.

Source: Kol Zchut · Study Fund (Keren Hishtalmut)

Salary ceiling for contributions to a study fund (keren hishtalmut)

15,712ILS per month

In force from 1 Jan 2026 · verified 10 Sep 2026

ILS 188,544 per year. The study fund is not mandatory by law; it arises from an agreement.

Source: Israel Tax Authority · Payroll Tax Calculation Aid Table 2026 · Kol Zchut

08

National Insurance

Brackets, rates and ceilings

Employee National Insurance contributions are calculated in two brackets: a reduced rate up to the threshold and a full rate above it, up to the maximum insurable income. Full details: Israel Income Tax and National Insurance Brackets.

National Insurance contribution rates for a salaried employee

Employee 4.27%/12.17% · Employer 4.51%/7.6%

In force from 1 Jan 2026 · verified 10 Sep 2026

BracketEmployee's shareOf which National InsuranceOf which health insuranceEmployer's share
Reduced · up to ILS 7,7034.27%1.04%3.23%4.51%
Full · ILS 7,703 – 51,91012.17%7.00%5.17%7.6%

Source: National Insurance Institute · Kol Zchut

National Insurance · maximum insurable income

51,910ILS per month

In force from 1 Jan 2026 · verified 10 Sep 2026

Change history · 5 values
ValuePeriod in forceSource
51,910From 1 Jan 2026 · in force nowNational Insurance Institute · Annual Circular 2026 · Letter to the Employer
50,6951 Jan 2025 – 31 Dec 2025National Insurance Institute · Letter to the Employer 02/2025
49,0301 Jan 2024 – 31 Dec 2024National Insurance Institute · Annual Circular 2024
47,4651 Jan 2023 – 31 Dec 2023National Insurance Institute · Annual Circular 2023
45,0751 Jan 2022 – 31 Dec 2022National Insurance Institute · Annual Circular 2022

National Insurance · reduced-bracket threshold

7,703ILS per month

In force from 1 Jan 2026 · verified 10 Sep 2026

Change history · 4 values
ValuePeriod in forceSource
7,703From 1 Jan 2026 · in force nowNational Insurance Institute · Letter to the Employer 2026
7,5221 Jan 2024 – 31 Dec 2025National Insurance Institute · Annual Circular 2024
7,1221 Jan 2023 – 31 Dec 2023National Insurance Institute · Annual Circular 2023
6,331Until 31 Dec 2022 · start date being verifiedNational Insurance Institute · Annual Circular 2022

National Insurance contributions · employee's share, reduced bracket

4.27%

In force from 1 Jan 2026 · verified 10 Sep 2026

1.04% National Insurance and 3.23% health insurance.

Source: Kol Zchut · National Insurance Contributions for a Salaried Employee

National Insurance contributions · employee's share, full bracket

12.17%

In force from 1 Jan 2026 · verified 10 Sep 2026

7.00% National Insurance and 5.17% health insurance.

Source: Kol Zchut · National Insurance Contributions for a Salaried Employee

National Insurance · employer's share, reduced bracket

4.51%

In force from 1 Jan 2025 · verified 9 Sep 2026

Change history · 2 values
ValuePeriod in forceSource
4.51From 1 Jan 2025 · in force nowNational Insurance Institute · “For Salaried Employees · Contribution Rates and Amounts” · column 1
3.55Being verified

National Insurance · employer's share, full bracket

7.6%

In force from 1 Jan 2019 · verified 9 Sep 2026

Source: National Insurance Institute · “For Salaried Employees · Contribution Rates and Amounts” · column 1

National Insurance · self-employed rates (including health insurance)

7.7% reduced · 18% full

In force from 1 Jan 2026 · verified 9 Sep 2026

Source: National Insurance Institute · “Insurance Contribution Rates” page · in effect from 1 Jan 2026

09

Income Tax

Brackets, credit points and surtax

A calculator, a notebook and a pencil on a desk, for an income tax calculation

Income tax on salary is calculated by brackets, and the value of the employee's tax credit points is then deducted from the tax. The full explanation is at Israel Income Tax Brackets 2026, and anyone with more than one employer needs tax coordination.

Individual income-tax brackets

6 brackets · 10%–47%

In force from 1 Jan 2026 · verified 10 Sep 2026

The brackets were widened by an amendment dated 31 Mar 2026 that applies retroactively from the start of the year. Any table quoting 2025 brackets is outdated.

Monthly incomeAnnual incomeTax rate
Up to ILS 7,010Up to ILS 84,12010%
ILS 7,011 – 10,060ILS 84,121 – 120,72014%
ILS 10,061 – 19,000ILS 120,721 – 228,00020%
ILS 19,001 – 25,100ILS 228,001 – 301,20031%
ILS 25,101 – 46,690ILS 301,201 – 560,28035%
Above ILS 46,690Above ILS 560,28047%

Source: Israel Tax Authority · Payroll Tax Calculation Aid Table 2026 · amended by the Economic Efficiency Law 2026, retroactive from 1 Jan 2026

Value of an income-tax credit point

242ILS per month

In force from 1 Jan 2026 · verified 9 Sep 2026

Surtax (mas yasaf) · annual threshold

721,560ILS per year

In force from 1 Jan 2026 · verified 10 Sep 2026

3% on the portion of income above the threshold (ILS 60,130 per month). On capital income, an additional 2%.

Source: Israel Tax Authority · Payroll Tax Calculation Aid Table 2026

10

VAT

The turnover ceiling for an exempt dealer

The turnover ceiling is the annual turnover up to which a business can operate as a VAT-exempt dealer (osek patur). For how to open a business file, see Opening a Business File in Israel.

Turnover ceiling for a VAT-exempt dealer (osek patur)

122,833ILS per year

In force from 1 Jan 2026 · verified 10 Sep 2026

Change history · 5 values
ValuePeriod in forceSource
122,833From 1 Jan 2026 · in force nowKol Zchut · VAT-Exempt Dealer (Osek Patur)
120,0001 Jan 2025 – 31 Dec 2025Kol Zchut · VAT-Exempt Dealer (Osek Patur)
107,6921 Jan 2023 – 31 Dec 2023Knesset Research and Information Center
102,2921 Jan 2022 – 31 Dec 2022Knesset Research and Information Center
98,7071 Jan 2017 – 31 Dec 2017Knesset Research and Information Center
11

Ending Employment: Severance, Hearing and Advance Notice

One month per year, the hearing framework and notice periods

A quiet meeting room with two chairs, a folder and a glass of water on the table

Ending employment involves three elements: a proper pre-dismissal hearing, advance notice according to seniority, and severance pay where the employee is entitled to it. The step-by-step guide is at Ending Employment in Israel.

Severance pay

  • One month's salary for each year of employment, based on the last salary (section 12(a) of the Severance Pay Law).
  • Eligibility: after at least one continuous year with the same employer or at the same workplace (section 1(a)).
  • A resignation deemed equivalent to dismissal also entitles the employee to severance pay. Such cases include a material deterioration in working conditions (after advance warning to the employer), the health condition of the employee or of a family member, resignation within 9 months of childbirth in order to care for the child, and relocation of the employee's home, but only in specific circumstances set out in the law.
  • Section 14 of the Severance Pay Law: a monthly deposit of 8.33% into the severance component in the pension fund fully replaces the severance pay. With a lower deposit, for example 6%, the employer makes up the difference.
  • Severance pay is paid on the last day of employment, and if not paid within 15 days it is considered delayed (section 20 of the Wage Protection Law).

The law and the full explanation on our site: Severance Pay Law

Sources: Kol Zchut · Severance Pay for a Dismissed Employee · Kol Zchut · Severance Pay for an Employee Who Resigned · gov.il · Payment of Severance Pay

Pre-dismissal hearing: the framework

  • Source of the obligation: The obligation to hold a pre-dismissal hearing is not set out in statute. It was established by Labour Court case law and derives from the duty of good faith, and it applies in the private sector too, to every employee, regardless of seniority.
  • Written summons, with the reasons: The summons details all the reasons for the intention to dismiss, with specific events and dates, and the employee may review the documents the employer relies on. A WhatsApp message is not considered a written summons.
  • Reasonable time to prepare: The law does not set a number of days, but Regional Labour Courts have held that 24 hours, and even two working days, are not sufficient.
  • Accompaniment: The employee may attend with a lawyer or another representative, for example a family member or a workers' committee representative, and bring witnesses on their behalf.
  • Minutes: The hearing is documented in minutes, and the employee receives a copy of them.
  • Decision after the hearing: The decision is made after considering the employee's arguments with an open mind, and is delivered within a reasonable time, not at the hearing itself. It is recommended to deliver it in writing, addressing the employee's arguments.
  • Dismissal without a hearing: The Labour Court may award compensation, and in certain cases even void the dismissal.
  • The full process, step by step: Pre-dismissal hearing. For an employee employed through a manpower contractor: Hearing for a temporary employee.

The law and the full explanation on our site: Pre-dismissal hearing · Israeli labour law at a glance

Sources: gov.il · Ministry of Labour · The Right to a Hearing · Kol Zchut · Pre-Dismissal Hearing

Advance notice: the rules

  • The notice is given in writing, and states the date it was delivered and the date on which the dismissal or resignation takes effect (section 2 of the law). A table of days by seniority appears in the Advance notice by seniority card.
  • The same periods apply to an employee who resigns (section 5).
  • An employer who did not give advance notice pays the employee their regular wage for the period for which notice was not given (section 7). The employer may also waive the employee's work during the notice period and pay their wage instead (section 6). Further detail: Advance notice upon termination of employment.

The law and the full explanation on our site: Advance notice on termination

Sources: Kol Zchut · Advance Notice for Dismissal · gov.il · Advance Notice for Dismissal and Resignation

Severance pay

1month's salary per year of employment

Legal basis: Section 12(a) of the Severance Pay Law

After at least one continuous year with the same employer or at the same workplace. Paid on the last day of employment; after 15 days it is considered delayed.

Source: Kol Zchut · Severance Pay for a Dismissed Employee · Text of the Law

Advance notice for dismissal and resignation

Up to one month, depending on seniority

Legal basis: Advance Notice for Dismissal and Resignation Law, 5761-2001, Sections 3–4

The same periods apply to an employee who resigns. An employer who did not give notice pays the regular wage for the period.

SeniorityMonthly-salaried employeeHourly- or daily-paid employee
The first 6 monthsOne day per month of workOne day per month of work
From month 7 until the end of the first year6 days, plus 2.5 days for each month beyond the sixth monthOne day per month of work
The second yearOne month14 days, plus one day for every two months of work in the second year
The third yearOne month21 days, plus one day for every two months of work in the third year
After three yearsOne monthOne month

Source: Nevo · Text of the Law · Kol Zchut · gov.il

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General information, not legal advice. The binding texts are the statutes and court rulings themselves.

The law behind the numbers, on our site

The figures on this page rest on these laws and guides. Each one explains the rules in plain English and what they mean for employers and employees.

Frequently asked questions

How often do these figures change?

There is no single date. The minimum wage changes by agreement or legislation, recuperation pay is updated by an extension order, and the National Insurance and VAT ceilings are usually updated at the start of the year. Wherever it has been verified, each card shows the date from which the figure applies.

How do I know which rate applies to a given period?

Where a figure has changed over time, its card includes a change history showing the period in which each value applied. To calculate an entitlement for a past month, use the value that was in force in that month, not the current one.

By what date must the salary be paid?

A monthly wage is due at the end of the month, and the final payment date is the 9th of the following month. If the 9th falls on a Sabbath or holiday, it must be paid before that day. After that date, the wage is considered delayed, and the employee is entitled to delayed-wage compensation.

How many hours of weekly rest is an employee entitled to?

At least 36 consecutive hours. For a Jewish employee this includes the Sabbath, and for a non-Jewish employee, Saturday, Friday or Sunday, according to their custom. The rest day is specified in the Notice to Employee on Terms of Employment.

Is it permitted to employ an employee on the Sabbath?

As a rule, no. Employment during the weekly rest is prohibited, except with a permit from the Minister of Labour under section 12 of the Hours of Work and Rest Law, and the request is submitted to the Ministry of Labour. An employee who worked during the rest period is entitled to at least 150% of the regular wage, and, under National Labour Court case law, to 175% and 200% for overtime during the rest period.

What is the minimum distance to qualify for travel reimbursement?

The extension order does not set a distance. According to National Labour Court case law, an employee who lives within 500 metres of the workplace is generally considered not to need transport, but this is a rebuttable presumption. The 3-stop rule in the order concerns a second bus, not the eligibility threshold.

Is the employer required to pay for a monthly pass?

No. The reimbursement is at the discounted public-transport fare, up to the daily cap, for each day actually worked. If a monthly pass is cheaper, the employer may pay on that basis, but is not required to.

How much severance pay is an employee entitled to?

One month's salary for each year of employment, based on the last salary, provided the employee worked at least one continuous year with the same employer or at the same workplace. When section 14 applies and the employer has deposited 8.33% into the severance component, the deposits fully replace the severance pay.

How much time before the hearing must the summons be delivered?

The law does not set a number of days. The summons must be delivered a reasonable time in advance and detail all the reasons. Regional Labour Courts have held that 24 hours, and even two working days, are not sufficient. The decision is given after the hearing, within a reasonable time, and not at the hearing itself.

How many days of advance notice is a monthly-salaried employee entitled to?

In the first six months, one day per month of work. From the seventh month until the end of the first year, 6 days, plus 2.5 days for each month beyond the sixth month. From the second year onwards, one month. The same periods apply to an employee who resigns.

Is recuperation pay the same for every employee?

No. The general private-sector rate differs from the rate in the cleaning and maintenance sector, which is set by a sector-specific extension order. Both rates appear separately on this page.

What does “being verified” mean in a table?

It marks a date we have not yet verified against an official source, usually the start date of a value that applied in the past. We do not show a date we have not verified.

Is the information on this page advice?

No. It is general information only. The binding text is the one published in the official gazette and official sources, and for a specific case you should consult a qualified professional.

Official sources and references

Most official sources are published in Hebrew.

Summary

This page brings together 49 statutory figures and 9 rules covering pay, working hours and rest, social benefits, pension, National Insurance, taxes and termination. For each figure you get the current value, the date it took effect or the section that sets it, and the earlier values, with their periods of validity where verified. The page is generated automatically from a single data source, so each rate update is reflected across the whole page at once.

This page is part of the Employee Rights in Israel guide and the Israel Labor Law Center.

Disclaimer. This page is general information and is not legal, tax or accounting advice. The binding text is the one published in the official gazette and official sources. For a specific case, consult a qualified professional.

Last updated: 10 Sep 2026 · Each month we do our best to scan the official sources with AI tools and present the most reliable, up-to-date information.

About the author
Yizhar CohenYC
Yizhar CohenEntrepreneur · CEO and Founding Partner at NETO

I founded NETO to turn complex employment and payment processes into something simple, clear and legal for everyone. Good service starts with human understanding, combined with smart technology and personal attention.

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