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October 9, 2023
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3 mins
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.
Acquiring an understanding of Israel's employment regulations is an essential measure when bringing employees on board in the nation.
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.
In Israel, the length of the probation period is subject to the employer's judgment, though typically it may extend up to 12 months.
● Annual Leave — 16 days
● Sick Leave 18 — days
● Maternity Leave — 26 weeks
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.
Benefits for Israeli employees may include the following:
● Health Insurance
● Pension
● Transportation Allowance
● Convalescence Pay
The Standard VAT rate in Israel is 17%
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 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
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.
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.
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If you're considering hiring employees or contractors in Israel or seeking compliant payroll solutions, reach out to us or book a demo at http://niural.com. For further insights, follow us on Twitter @niuralhq. Make informed decisions and ensure a successful hiring process in Israel!
