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Labor Laws in Israel

  • Annual Leave: Minimum 14 days
  • Maternity Leave: 26 weeks
  • Public Holidays: 8
  • Workweek: 42 hours per week.

Income Tax in Israel

Income Tax in Israel is progressive ranging from 10% to 50%.

Value Added Tax (VAT) in Israel

Israel has a standard VAT rate of 17%.

Social Security in Israel

In Israel, the social security contributions for employers and employees are structured as follows:

Employee Contributions:

  • 0.4% on income up to ILS 7,522 per month and 7% on income between ILS 7,522 and ILS 49,030 per month.

Employer Contributions:

  • Employers must pay national insurance based on a percentage of each employee’s income every month. They also withhold employees’ contributions from wages and remit them with their contributions.
  • 3.55% on income up to ILS 7,522 per month and 7.6% on income between ILS 7,522 and ILS 49,030 per month.

Work Visas Israel

The work visas available to legally work in Israel include:

B-1 Work Visa

  • The B-1 work visa is the most common work permit for foreigners in Israel.
  • It allows foreign nationals to work in Israel for a specific employer for a limited period, typically up to 5 years.
  • B-1 visas are issued for specific job positions and require approval from the Ministry of Interior.

Expert Work Visa (A-5)

  • The A-5 expert work visa is for foreign experts, specialists, and senior managers brought to Israel by Israeli companies.
  • It allows the holder to work in Israel for up to 5 years, with the possibility of extension.
  • The A-5 visa requires approval from the Ministry of Economy and Industry.

Intra-Company Transfer Visa (B-1 ICT)

  • The B-1 ICT visa is for foreign employees of multinational companies who are transferred to work at the company's Israeli branch.
  • It allows the employee to work in Israel for up to 5 years.
  • The B-1 ICT visa requires approval from the Ministry of Interior.

Freelance/Self-Employment Visa (B-1 Freelance)

  • The B-1 freelance visa allows foreign nationals to work as freelancers or self-employed individuals in Israel.
  • It is issued for up to 1 year at a time.
  • The B-1 freelance visa requires approval from the Ministry of Interior.

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