Long ago, the Middle East was the cradle of civilization. Today, it offers exciting opportunities and a highly skilled, tech-forward workforce—you don’t even need to learn cuneiform!
Still, it’s not all easy. As soon as you start looking into how to actually hire and pay in Israel, things get complicated. Employment laws you haven’t seen before, payroll requirements that don’t look anything like your home country’s, and steep penalties for noncompliance.
This guide is here to simplify it all. We’ll walk you through the steps to legally hire, pay, and support employees in Israel without getting lost in the weeds (or reeds).
Hiring requirements
If you want to hire someone in Israel, start with the basics: legal eligibility and official registrations. You’ll need to dot your i’s and cross your t’s before anyone gets to work.
Here’s what you need to hire legally:
- Israeli citizens and residents. Must show a valid Israeli ID.
- Foreign nationals. Need a valid work visa or permit before they start.
- Employers. Must provide a written contract outlining salary, hours, job duties, and benefits, all in line with Israeli labor law.
You also need to register the employee with the National Insurance Institute and the Israeli Tax Authority. That means opening files with both institutions before running payroll.
Foreign nationals and work permits
Hiring someone from outside Israel? You’ll need to help them secure a B/1 work visa. To start the process, the employer must apply at the Ministry of Interior. You’ll need to prove:
- The job can’t be filled by a local hire.
- Your candidate has specialized skills.
- You’re offering a legal, fair employment package.
Once that’s approved, your hire can apply for their visa at an Israeli consulate. It usually takes several weeks, but if you’re a startup hiring tech talent, you might qualify for a faster track through the Innovation Visas program.
Work permits are typically valid for one year and need annual renewal. If you skip this process and hire someone without a permit, expect serious fines.
To learn more, check out: Navigating Israel’s Work Visa Landscape: A Comprehensive Guide for Employers.
Payroll in Israel
Israel runs a tight ship when it comes to payroll. Salaries must be paid monthly, no later than the 9th of the following month, and bank transfers are the preferred method.
- Bank transfer. This is preferred and the most common payment type.
- Check. Legal but rare. Only use it if absolutely necessary.
- Cash. Allowed, but discouraged. You’ll need signed receipts and full documentation.
You’ll also need to keep proper records—signed contracts, detailed payslips, and confirmation of all tax and benefits payments. Local providers or global payroll platforms can make this easier.
Taxation, deductions, and payslips
When you run payroll in Israel, you’re responsible for taking care of:
- Income tax. Rates range from 10% to 50% depending on income.
- National Insurance. You pay 3.55% to 7.6%; your employee pays 3.5% to 12%.
- Pension. You contribute 6.5%; your employee contributes 6%.
Payslips must show gross pay, net pay, all deductions, and accrued benefits. Most also include vacation and sick leave balances.
Check Israel’s official site for current brackets and calculators.
Salary standards and compliance benchmarks
As of 2025, Israel’s minimum monthly wage is ILS 5,571 (around US$1,470). You’ll see much higher numbers in tech and professional sectors.
Junior developers often earn ILS 14,000/month, while experienced marketing managers pull in ILS 18,000 to ILS 22,000. Some companies also offer a 13th month salary (a yearly bonus) and cover transportation costs. Unionized roles, especially in public sectors, may follow collective bargaining agreements.
Learn how Israel stacks up globally: Minimum Wage by Country in 2025: A Guide for Global Employers.
Navigating the job market
Israel’s startup scene is one of the most competitive in the world. To find the right talent, you need to be where they are.
Use these tools:
- AllJobs. The largest local job board.
- Drushim. Great for Hebrew-speaking candidates.
- LinkedIn Israel. Strong for tech and business hires.
Specialist recruiters like Ethosia or Nisha Group can help if you’re hiring in biotech, cybersecurity, or engineering. They often handle screening, translation, and contract basics.
Tips and resources for a successful application
Hiring in Israel takes prep work. But you don’t have to figure it out alone.
Smart steps for a smooth experience:
- Start paperwork early—permits and tax files take time.
- Translate documents to Hebrew if needed.
- Double-check legal updates each year.
How an Employer of Record helps
An EOR is a partner that legally hires employees on your behalf in other countries. They handle visa sponsorship, payroll, tax withholding, contracts, and compliance while you manage the work and focus on building your team, not deciphering labor law. When you’re ready to scale fast, an EOR like Pebl keeps things legal, simple, and on time.
Get hiring right the first time with Pebl
Hiring in Israel can feel like a maze. But with the right steps (and the right support), you’ll get where you need to go.
Understand the requirements. Choose your payroll method wisely. Pay attention to salaries, taxes, and timelines. And when in doubt, bring in an expert who’s already done it before.
That’s where Pebl comes in.
By using an employer of record in Israel, you can start hiring in days, not months. We have all the local insight you need to scale quickly and compliantly and help you hire and pay in Israel the right way, right away.
Through our global services, you can onboard, pay, and manage employees across 185+ countries worldwide. So whether you’re building your first team in Tel Aviv or scaling across Thailand, we’ve got you covered.
Contact us when you’re ready to make expansion easy.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
© 2025 Pebl, LLC. All rights reserved.
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