Operating a Business

flag Israel Israel: Operating a Business

In this page: Legal Forms of Companies | The Active Population in Figures | Working Conditions | The Cost of Labour | Management of Human Resources

 

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.
 

Business Directories

Financial Information Directories
Dun & Bradstreet - Worldwide directory with financial information on businesses

To go further, check out our service Business Directories.


 

Professional Associations

General Professional Associations
ASAKIM - Business Promotion Council

To go further, check out our service Professional Associations.


 

Business Setup Procedures

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
 

Recovery Procedures

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.

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The Active Population in Figures

201820192020
Labour Force 4,102,5664,159,7794,136,200

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 72.46%72.41%72.18%
Men activity rate 76.02%75.28%74.77%
Women activity rate 68.90%69.53%69.58%

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

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Working Conditions

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).

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The Cost of Labour

Pay

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.
 

Social Security Costs

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)

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Management of Human Resources

 

Recruitment

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
 

The Contract

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.

Breach of Contracts

  • 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 Partners

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.
Unions
Histadrut
Regulation Bodies
Ministry of Economy and Industry
 
 

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Latest Update: November 2022