Israeli New Shekel (ILS)
US$6.81bn in 2023
Israeli New Shekel (ILS)
US$6.81bn in 2023
Located in the Middle East, Israel has earned the nickname 'The Startup Nation' due to its thriving tech scene. With over 6,000 active startups and a dominant presence in industrial high-tech and entrepreneurship, the country excels in innovation, boasting the highest number of startups per capita globally.
Israel also ranks #2 in the world for R&D expenditure per capita, reflecting its strong research capabilities. Known for its expertise in cybersecurity, Israel is also witnessing the emergence of flourishing sectors like Fintech, AI, and automation.
Israel's workforce is highly educated and skilled, with a high percentage of engineers, scientists, and university degree holders. The tech industry is well-supported by early-stage funds, with a significant portion of venture capital funding going to Israel.
ALLSTARSIT takes care of everything for you – we have a 360° approach with a full recruitment cycle
The payroll cycle in Israel occurs on a monthly basis.
Employers in Israel are subject to specific tax and social security contribution rates as of the last review in February 2023. The corporate tax rate is 23%, while the standard rate for Value Added Tax (VAT) is 17%.
In Israel, the standard working hours for a five-day workweek, from Sunday to Thursday, is 48 hours. Employees are entitled to overtime pay for any additional hours worked beyond regular working hours. The calculation for overtime pay is as follows:
The payment is calculated at 125.00% of the regular wage for the first two overtime hours.
Any additional work hours during the weekly rest day are calculated at 150.00% of the regular wage.
Some companies may choose to provide a global monthly amount as compensation for overtime pay instead of calculating it based on specific hours worked.
In Israel, employees are entitled to mandatory annual leave of 16 days.
In Israel, employees accrue 1.5 days of paid sick leave for each month worked, with a maximum accumulation of 90 days. The entitlement to sick leave begins on the second day of absence, as the first day is unpaid. During the second and third days of sick leave, employees are paid 50% of their usual wages. Starting on the fourth day, employees receive their full pay. Employees must provide a medical certificate to validate their sick leave.
Public and Provincial Holidays
In Israel, the notice period for employees is determined based on the number of years they have been employed. The notice periods are as follows:
- In the 1st year of employment, employees are required to provide 1 day of notice for every month worked.
- In the 2nd year of employment, the notice period increases to 14 days.
- In the 3rd year of employment, employees must provide a notice period of 21 days.
- After completing three years of employment, the notice period extends to 1 month.
13th Month Bonus
In Israel, a 13th month pay is not mandatory but is commonly provided by employers as an additional benefit to their employees.
Setting up a separate business entity in every location where you plan to hire employees or a team is time-consuming and incurs high legal fees.
At the same time, navigating local labor laws and adhering to employee expectations can be a complex and challenging task, as is finding accurate and up-to-date employment information for all your potential hiring locations. Not to mention that tracking invoices and managing employee contracts through email and spreadsheets is messy and error-prone.
Compliance is critical in this context, and we must ensure that we follow local guidelines, particularly regarding taxes and legalities.
ALLSTARSIT streamlines the process by offering an integrated solution for finding and hiring employees, managing HR and payroll, and automating compliance across 20+ countries. All simple and hassle-free.
Choose the right expert professionals required for your specific project, saving time and wasted effort.
This service enables software development companies worldwide to meet any technical needs outside their core skill set by adding specialized staff on demand while retaining control of the project's specifications and scope.
Establish R&D / Tech Support / QA & Testing / DevOps / Data Entry Centers in your chosen location.
Forget about investing in facilities, equipment, technology, or human resources. We manage all necessary operations as your specialist. This can help you save money and resources, all while reducing frustration and simplifying internal processes.
Use ALLSTARSIT as your EOR / CM to easily hire employees in new countries without setting up a legal entity.
We act as the employer for your new hire, handling all HR, payroll, tax, and compliance requirements on your behalf, while you maintain control of their workload.
Tap into a wide talent pool of top-tier engineers from our database. We will find the right fit for your business and help you reduce your hiring timeline.
Attract, hire, and retain top talent, building a motivated workforce that drives your business forward.
Managing tech equipment
Retention and risk analysis
Compensation revision & expense returns
1:1 meetings (180-degree)
Performance reviews & periodic surveys
Ongoing client and expert support
Expand your business globally and hire employees or contractors quickly and efficiently by partnering with ALLSTARSIT, who can act as your EOR/CM and handle the administrative and legal aspects of their employment while you control their workload.
Improve your employees' well-being and job satisfaction by offering them a range of corporate benefits through ALLSTARSIT, including wellness consultant sessions, music lessons, workations, gym compensation, and employee recognition programs.
Keep track of your team's progress and satisfaction with ALLSTARSIT's monthly reports and periodic surveys, allowing you to identify any issues and make necessary adjustments to retain top talent.
Enhance your employees' working experience by offering them the possibility of working from an office or securing a seat in a premium co-working space shared area through ALLSTARSIT.
Simplify your HR operations and ensure your employees receive timely and accurate paychecks with ALLSTARSIT's comprehensive payroll solution.
Increase your employees' satisfaction and productivity by providing them with the peace of mind that comes with having access to a reliable and comprehensive health insurance package made possible by ALLSTARSIT.
Invest in your employees' professional development by implementing a comprehensive L&D program that includes access to online education platforms, language classes, and technical meetups, courtesy of ALLSTARSIT.
Build a Customer Care or a Customer Support team to ensure that your business excels in providing exceptional assistance to your customers.
Whether you need a team of professionals that can handle relationship building and product knowledge or a group of Tier 1/2/3 engineers that can help with troubleshooting and other technical issues, ALLSTARSIT can help you find, hire and manage them.