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Payroll in Israel
Payroll in Israel runs in ILS on a monthly cycle, with statutory employer contributions and recuperation pay (annual). Gracemark operates it end-to-end — humans, not tickets.
Currency
ILS — Israeli new shekel
Payroll cycle
Monthly
Working week
42 hrs
Minimum wage
~₪5,880/mo
13th-month
Recuperation pay (annual)
Employer cost
~7–10% + pension + severance fund
Probation
Commonly 6–12 months
Notice period
1 day–1 month by tenure
Two ways to run payroll in Israel
Own-entity payroll
For long-term presence in Israel. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity — with a named operator on Western Asia time.
EOR-run payroll
No entity in Israel? Employ and pay talent under Gracemark's local infrastructure via EOR — onboard in 1–2 weeks (eor), no local incorporation.
Compliance essentials in Israel
- Mandatory pension and severance (Pitzuim) funds accrue monthly
- Annual 'recuperation pay' (Dmei Havraa) is owed
- Notice and leave scale with tenure
- World-class deep-tech, cyber and AI talent
- Section 14 arrangement can simplify severance
Get a payroll quote for Israel
Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline — no sales scripts.
Deeper guide
Hiring guide: Israel →
Employ without entity
EOR services →
All countries
Global payroll overview →