|Payroll Frequency||monthly/no later than the 9th of the following month|
|Date Format||יי-חח-שששש (am); dd-mm-yyyy (ce)|
|VAT||17% standard rate|
Employer of record Services
TopSource offers complete payroll, EOR and contractor management services for Israel. TopSource provides Employer of Record services to global companies establishing a presence in Israel that do not wish to be burdened with the complications of Israel employment regulations.
TopSource serves as an outsourced Global Employment Solutions provider. We provide comprehensive employment services such as payroll, payroll related compliances, leave and attendance administration, HR management, and assistance with employer compliances.
If you have an established presence in Israel, our payroll bureau services are available. But if you are seeking to avoid the complications of a subsidiary—or wish to establish a presence quickly an convert to a subsidiary later—our EOR service is ready to support you today.
Services we offer
|• Payroll bureau solutions for your Israel entity|
|• Employment solutions/leasing||• Providing documents associated with employment|
|• Employee on-boarding process and documentation||• Monthly salary calculation|
|• Salary disbursement to employee’s account||• Pay slip generation (If applicable)|
|• Employee statutory benefits administration and deduction|
|• Foreign exchange and money transfer services for payment of employees and 3rd parties|
Company formation in Israel
We can help with company registration, company incorporation along with all the necessary documentation in Israel. We can also assist foreign companies to smoothly setup a company anywhere in Israel.
- Minimum Wage
The minimum wage is 5,300 NIS per month.
Employer 8.33% – Severance Pay 10.95% – Social Security and Health Insurance 6.50% – Pension Fund 2.50% – Disability Insurance Employee 15.50% – Social Security and Health Insurance 6.00% – Pension Fund 10.00% – Up to 6,220 14.00% – 6,220 – 8,920 20.00% – 8,920 – 14,320 31.00% – 14,320 – 19,990 35.00% – 19,990 – 41,410 47.00% – 41,410 – 53,333 50.00% – Over 53,333
Working HoursFull time employment is considered 48 hours weekly.
Overtime is paid at 150%-200% of regular salary depending on hours worked.
VacationFor a full time position of 5 days a week, an employee is entitled to 12 annual paid vacation days, during his first 5 years of employment. From the 6th year and on- the entitlement increases.
Maternity LeaveAn employee who has worked at least one year for an employer or in the same place of employment is entitled to a maternity leave of 26 weeks.
Employees who have worked less than 12 months for the same employer are entitled to 15 weeks of maternity leave.
Paternity LeaveThe spouse or partner of a woman who gave birth is entitled to be absent on account of the accrued sick leave.
In addition, the spouse or partner is entitled to 5 days of paid paternity leave, with respect to the first five calendar days following the birth.
Sick leaveThe employer is responsible for 0% of the compensation if the employee is sick for 1 day. If they are sick 2-3 days, employer is responsible for 50% of the salary and over 4 days, 100% of the salary. Employees accumulate 1.5 days for each month of the employment.
Pension FundThe employer contributes 6.5% for the pension fund and up to 2.5% for disability fund. The employee contributes 6% for the pension fund.
Social SecurityThe National Insurance Institute is responsible for the social security of the residents of Israel, guaranteeing basic sustenance to those unable to provide for themselves And covers healthcare for all residents of Israel. Healthcare is upheld by the National Health Insurance Law, through payment of monthly premiums to the National Insurance Institute (Bituach Leumi) for the share of income which is up to 60% of the average wage – NIS 5,678.
Termination/SeveranceIt is compulsory for employers to provide 30 days’ notice alternatively an employer can offer payment in lieu of notice.
Employer is responsible for depositing 8.33% of the employee’s monthly salary into severance fund. Employee receives the severance payment at the time of termination.