Israel
Capital: Jerusalem
Currency: Israeli New Shekel- ILS
Israel Labor Law and Employment Policy Overview
Employment Law Overview
- Main Laws and Regulations:
- Israeli Labor Law
- Collective Bargaining Agreements
- Labor Court Precedents
- Legal Characteristics:
- Aims to protect employee rights and promote workplace fairness
- Emphasizes social dialogue and collective bargaining
- Sets standards for minimum wage, working hours, vacations, severance pay, etc.
Employment Contract Requirements
- Contract Types:
- Fixed-term contracts
- Indefinite-term contracts
- Contractual Provisions:
- Must include essential terms such as job description, salary, working hours, vacations
- May include additional clauses, such as confidentiality agreements, non-compete clauses
- Language and Currency:
- Contracts must be in Hebrew or Arabic
- Currency is the Israeli New Shekel (ILS)
Working Hours Regulations
- Standard Working Hours:
- 42 hours per week
- Rest Days and Breaks:
- At least 48 hours of rest per week
- At least 45 minutes of break time per day
Vacation Policy
- Annual Leave:
- 12-15 days per year, increasing with seniority
- Public Holidays:
- 9 statutory public holidays
- Special Leaves:
- Sick leave: 1.5 days per month, up to 90 days
- Maternity leave: 26 weeks
- Paternity leave: 5 days
- Parental leave: 8 days for fathers
Employee Severance and Termination of Contract
- Notice Period:
- 0-6 months of employment: 1 day's notice
- 6+ months of employment: 30 days' notice
- Severance Pay:
- 1 month's salary for each year of employment
- Protection Against Unfair Dismissal:
- Employees have the right to appeal against unfair dismissal
Taxation
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Personal Income Tax:
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Salary Range (ILS) Tax Rate 0 - 6,790 10% 6790 - 9730 14% 9,730 - 15,620 20% 15,620 - 21,710 31% 21,710 - 45,180 35% 45,180 - 58,190 47% 58,190 and above 50%
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Social Security Contributions:
- Employee: 3.55% - 3.55%
- Employer: 18.38% - 21.78%
Health Insurance
- Insurance Policy:
- Employees are required to participate in the National Health Insurance Scheme
- Insurance Coverage:
- Basic medical services, preventive care, hospitalization
Compensation and Benefits
- Minimum Wage:
- ILS 5,571.75 per month
- Compensation Structure:
- Monthly salary
- Benefits such as bonuses, allowances
Work Permits and Visas
- Permit Requirements:
- Foreign employees require a work permit
- Application Process:
- Apply through the employer to the Ministry of Interior
Confidentiality and Non-Compete Clauses
- Enforceability:
- Confidentiality and non-compete clauses are enforceable in Israel
- Common Clauses:
- Confidentiality agreements: Protect the employer's confidential information
- Non-compete clauses: Restrict employees from engaging in similar work after leaving
Training and Development
- Legal Requirements:
- Employers must provide safety training and opportunities for skill enhancement
- Government Support:
- Government provides training subsidies and programs
Workplace Diversity and Inclusion
- Legal Requirements:
- Prohibits discrimination based on factors such as race, religion, gender
- Enforcement:
- Equal Employment Opportunity Commission enforces anti-discrimination laws
Remote Work Policy
- Legal Framework:
- Remote work is legally recognized in Israel
- Tax and Insurance Implications:
- Remote work may affect tax and social security contributions
Authoritative Website Addresses
- Israeli Ministry of Labor and Social Affairs: https://www.gov.il/en/departments/ministry_of_labor_social_affairs