Israel Employment Guide

Israel Employment Guide

Israel is in the Middle East, bordering Jordan, Syria (east), the Mediterranean (west), Egypt, the Red Sea (south). It has ~9.5 million people; Hebrew and Arabic are official, and Jerusalem is the capital. Its highly developed economy leads globally in tech, finance, defense and agricultural technology, with key service and export-oriented manufacturing sectors. Labor laws (per Israeli Labor Law) protect wages, hours, leave and social security. Standard workweek: 42 hours (overtime needs extra pay or time off). Salaries are usually monthly (avg. ILS 11,000 pre-tax). Laws cover paid leave and protect contract/temp workers, balancing employer-employee interests for a fair, flexible labor market.

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Currency

Israeli New Shekel (ILS)

Capital

Jerusalem

Official language

Hebrew and Arabic

Salary Cycle

Monthly

Our Employment Guide in Israel

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Paid Annual Leave Entitlements in Israel

Full-time employees working a standard five-day week are entitled to 12 days of paid annual leave each year. For part-time staff, vacation days are calculated proportionally based on hours worked, or alternatively, compensated at 70% of a full-time employee's salary.

Leave accrues monthly using this formula: basic monthly salary divided by 21.67 (average working days per month), multiplied by either 10 or 12 depending on the employee's weekly work schedule. Employers have a legal obligation to ensure staff utilize at least 7 days of their annual leave entitlement each year. Employees become eligible for vacation time after completing three months of continuous service.

Practical Application: Leave Management

Consider a case where a marketing professional at SailGlobal transitions from part-time to full-time status. Their leave entitlement would be recalculated proportionally, ensuring compliance while maintaining fairness. This approach demonstrates how flexible policies can adapt to changing employment arrangements.

National Public Holidays in Israel

Israel recognizes nine official public holidays annually:

  1. First Day of Passover
  2. Seventh Day of Passover
  3. Independence Day
  4. Shavuot (Pentecost)
  5. Rosh Hashanah (Jewish New Year)
  6. Yom Kippur (Day of Atonement)
  7. First Day of Sukkot (Feast of Tabernacles)
  8. Shemini Atzeret (Assembly of the Eighth Day)
  9. Simchat Torah (Rejoicing of the Law)

Additional holidays such as Election Days may also be observed depending on current national circumstances.

Cultural Considerations for International Employers

Multinational companies like SailGlobal often implement cross-cultural training to help international staff understand the significance of these holidays. For instance, during Yom Kippur, even non-Jewish employees should be aware that normal business operations typically cease nationwide, requiring advanced planning for project timelines.

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