All About Offering Employee Benefits in Israel
Hire the best talent in Israel with the information you need to offer a competitive benefits package and stay compliant.
Required Benefits in Israel
Israel's robust social security system ensures employees receive essential protections, making additional perks key to attracting top talent. Justworks provides access to tailored support in Israel, helping small businesses save time and resources by skipping local entity setup. Let’s explore the benefits employers need to provide to employees in Israel, plus additional perks they may want to consider offering.
Social Security
The National Insurance Institute (NII) provides social security for Israeli citizens and permanent residents. Both employees and employers must make monthly contributions to national insurance which funds benefits like retirement, healthcare, statutory leave, disability, unemployment insurance, and more.
Time Off
Full-time and part-time employees in Israel are entitled to paid annual leave after three months of service. Part-time leave is calculated on a pro-rated basis or at 70% of full-time wages. Leave entitlement increases with length of service, for example, 12 days for the first five years, 14 days in the sixth year, 15 days in the seventh year, and an additional day per year thereafter, up to a maximum of 20 days. Employees earn regular pay during vacation days and become eligible for leave after three months of employment with the same employer.
Offer Competitive Benefits
A robust employee benefits package can be a powerful recruitment tool. Consider incorporating the following benefits.
Wellness Programs
Employers may also offer wellness programs to promote employee health and well-being. This includes perks like gym membership stipends, wellness workshops, mental health support, and company-led initiatives to encourage healthy lifestyle choices.
Education FundÂ
Education funds are a common offering in Israel and are a hybrid of savings plans and investment funds. For employees, contribution rates are typically negotiated as part of their employment terms. The maximum allowable monthly contribution from employees is 5%, matched up to 7.5% from the employer.
Meal Allowance
Meal allowances are very common for high-tech industries and professional services. The allowance is approximately 1000 ILS per month and is given as a voucher/app.
Ready to Offer Benefits in Israel?
Justworks makes building your global team seamless by helping you access localized support to attract top talent in Israel. Simplify international hiring today.
