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hire in Israel

Israel PEO &
Employer of Record

SALARY PAYMENT IN Israeli Shekel (ILS, ₪)

CONTRACT LANGUAGES      Hebrew / English

PAYROLL TAX 20.88% – 24.33%


TIME TO HIRE 12 hours

Hire and pay talents
with Horizons in
180+ countries

Simple, compliant hiring with Horizons PEO

PEO 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 PEO is the quickest and most cost-effective way to enter the Israel market.

Facts & Stats

PEO Platform

Hire in Israel, and pay employees through our platform or app.

PEO Cost

Our Israel PEO solution is the most affordable on the market.


Fast onboarding in Israel, hire in as little as 12 hours.


We draft labor contracts compliant with Israeli labor law.

Local Benefits

We administer all mandatory benefits and contributions in Israel.

180+ Countries

It doesn’t stop with Israel — we are an international PEO

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 PEO, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations. 

Probationary period6 months (functionally, for all roles)
Termination notice period

Entitlements are based on months of service:

0 – 6 months’ service: 1 week’s notice

6 months – 1 year’s service: 1 week’s notice + 2.5 days per month of service

1+ year’s service: 30 days’ notice

Severance1 month’s salary per year of service
Probationary period6 months (functionally, for all roles)
Termination notice period

Entitlements are based on months of service:

0 – 6 months’ service: 1 week’s notice

6 months – 1 year’s service: 1 week’s notice + 2.5 days per month of service

1+ year’s service: 30 days’ notice

Severance1 month’s salary per year of service

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).

Hire compliantly in Israel without a local entity.

Quick, compliant hiring in 12 hours—no subsidiary required.

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:

Israel has a range of national public holidays that are celebrated annually. In 2023 these holidays are:
Date Holiday name
6 Apr Thursday Passover (Day 1)
12 Apr Wednesday Passover (Day 7)
26 Apr Wednesday  Yom HaAtzmaut
26 May Friday Shavuot
16 Sep Saturday Rosh Hashana
17 Sep Sunday  Rosh Hashana (Day 2)
25 Sep Monday Yom Kippur
30 Sep Saturday Sukkot (Day 1)
7 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 PEO 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 2020, the minimum wage in Israel for someone working five days per week is 212 NIS per week. There is a higher rate of 244.62 NIS for people working six days per week.

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 PEO & 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.

Hire in Israel in 12h
without your own local entity.

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


An Israel PEO and an Israel EOR are two types of companies which specialize in providing human resources services to businesses in Israel.

The main difference between an Israel PEO and an Israel EOR is in the scope of their services.

Israel PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging an Israel PEO is essentially outsourcing your HR duties in Israel.

Israel EORs actually take over as the legal employer of your employees based abroad. Israel EORs become responsible for labor compliance for your employees in Israel.

At Horizons, we offer both PEO and EOR services in Israel. Get in touch now and let us know what service you are seeking.

A PEO 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.

In most cases, Horizons’ Israel PEO 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.

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.