Operating a Business

Israel: Operating a Business

Legal Forms of Companies

Public limited company (business corporation): Number of partners: Minimum 7 shareholders and 2 executives.
Capital (max/min): No minimum capital. Pour être coté à la bourse de Tel Aviv, minimum 25 millions NIS
Shareholders and liability: Liability limited to the amount of contributions in share capital.
Limited Liability Private Company (SARL): Number of partners: Minimum 1 shareholder and 1 executive. Maximum 50.
Capital (max/min): No minimum capital.
Shareholders and liability: Liability limited to the amount of contributions in share capital.
General Partnership: Number of partners: Minimum 2 partners in the partnership.
Capital (max/min): No minimum capital.
Shareholders and liability: Unlimited liability for debts and obligations of the company.

Setting Up a Company	Israel	Middle East & North Africa
Procedures (number)	3.00	6.28
Time (days)	11.00	19.51

Source: Doing Business - Latest available data.

The Competent Organisation: Registrar of Companies, Ministry of Justice.
For Further Information: Consult the Doing Business Website, to learn about how to start a business in Israel.
Israelbusiness

Dun & Bradstreet - Worldwide directory with financial information on businesses

Principle: Enforcement Law in Israel is often criticized. The creditors argue that the system is inefficient and does not provide legal instruments for collecting debts.

	2018	2019	2020
Labour Force	4,102,566	4,159,779	4,136,200

Source: International Labour Organization, ILOSTAT database

Source: International Labour Organization, ILOSTAT database

Employed Persons, by Occupation (% of Total Labour Force)	2015
Education	12.5%
Wholesale and retail trade; repair of motor vehicles and motorcycles	11.5%
Manufacturing	11.5%
Human health and social work activities	10.8%
Public administration and defence; compulsory social security	10.2%
Professional, scientific and technical activities	7.1%
Construction	5.0%
Information and communication	4.9%
Accommodation and food service activities	4.2%
Administrative and support service activities	4.2%
Transportation and storage	4.1%
Financial and insurance activities	3.4%
Arts, entertainment and recreation	1.8%
Agriculture, forestry and fishing	1.0%
Real estate activities	0.8%
Electricity, gas, steam and air conditioning supply	0.4%
Water supply; sewerage, waste management and remediation activities	0.4%
Mining and quarrying	0.1%

For Further Statistics: Bureau of statistics
For Further Information About the Labour Market: Adva Centre - Information on Equality and Social Justice in Israel

Opening Hours
Legal Weekly Duration: Maximum 45 hours per week
Maximum Duration: 8 hours per day with a break of 3/4 hours out of which 1/2 hour for meals.
Night Hours: Between 22:00 hours and 06:00 hour.

Working Rest Day: Saturday, the Shabbat is the legal weekly day off (waiver for non Jews).
Paid Annual Vacation: Between 14 and 28 days of annual paid leave (based on seniority) the holidays corresponding to Jewish and national festivals are added to this.
Retirement Age: Between 60 to 65 years for women and between 65 to 70 years for men.
Child Labour and Minimum Age For Employment: 16 years (14 years for vacant jobs).

Minimum Wage: According to Government data, the minimum wage is ILS 5,300 per month as of 2022.
Average Wage: According to data from the Central Bureau of Statistics, the average wage in 2021 was ILS 11,795 per month. In March 2022, it reached ILS 12,672.
Other Forms of Pay
Pay For Overtime: 125% for the first two additional hours, 150% for the hours which follow.
Pay For Rest Days Worked: 150%
Pay For Night Hours: from 16 years between 2200 hours and 0600 hours on the following day, 7 hours per night
Pay For Overtime at Night: 125% for the first two additional hours, 150% for the hours which follow.

The Areas Covered: All the Israeli residents are insured with Bitouah Leumi (Social Security) who are salaried, independent, retires, students or unemployed aged 18 to 60 years (65 years for women). The sectors covered are : maternity, industrial accidents, family allowances, unemployment and retirement.
Contributions: Contributions Paid By the Employer: Contributions paid by the employer amount to 3.55% (up to monthly income of ILS 6,331), and 7.6% on the difference between ILS 6,331 and the maximum monthly income of ILS 45,075.
Contributions Paid By the Employee: Employee contributions are at standard rate, 7% for National insurance and 5% for medical insurance and at reduce rate, 0.4% for National insurance and 3.1% for medical insurance.
Competent Organization: Bitouah Leumi (Social Security)

Method of Recruitment: The candidatures are made more and more through the internet.
Recruitment Agencies: Recruitment agencies: Get a Job in Israel, Amal, Enosh, ORS, Tafkid Plus, RecruitIL, Manpower.
Recruitment Websites: Jobs-Israel
Jobmaster
Expat Ads

Type of Contract: Employment contracts are governed by legal provisions and to a lesser extent by collective agreements. Employment contracts can be written or oral. They can be indefinite, permanent or temporary.

Retirement: The retirement generally takes place at 60 years for women and 67 years for men.
Dismissals: Dismissal does not have to be justified in Israel. However, there are limits as for example the case of a pregnant woman who has reported her pregnancy or the period which directly follows her return to work.
Other Possible Methods: Resignation.
Labour Laws: Labor Law Israel - ILO
Consult the Doing Business Website, to obtain a summary of the labour regulations that apply to local companies in Israel.

Social Dialogue and Involvement of Social Partners: Most of unions belong to Histadrut (General Federation of Labour in Israel), or to a much smaller rival federation, the Histadrut Haovdim Haleumit (the National Labour Federation). Negotiations are carried out at the national and sectoral level.
Unionisation Rate: Unionisation rate in percentage of the labour market population in Israel: 15% in 2014.
Labour Unions: Histadrut
Regulation Bodies: Ministry of Economy and Industry

Any Comment About This Content? Report It to Us.