Category: Employment in Israel

Moving to Israel is not without challenges, and one of the big ones is the language. If you went to a Jewish day school you might have a passable knowledge of Hebrew, but it’s equally possible that while you can read a Jewish text, you can’t carry on a conversation in Hebrew without getting stuck mid-sentence. If you didn’t learn Hebrew at all as a kid and you’re starting from scratch as an adult, learning the language will be a bigger challenge.

It’s obviously a good idea to learn as much Hebrew as you can before you get here and continue to learn once you arrive. You’ll need Hebrew most places you go. Although many Israelis speak English, it will be hard to deal with bureaucracy, customer service and parent-teacher meetings without any Hebrew. 

Work in English

Work can sometimes be the exception to this rule. Depending on your profession, you may be able to find a job where English is a huge plus and Hebrew is not as important. Examples include teaching English, US accounting for expats, technical writing, computer programming, marketing to international clients and overseas sales. 

Be aware that even at jobs where the work is in English, office communication may be in Hebrew. Emails, WhatsApp messages, meetings and friendly conversation may all be conducted in Hebrew. You can certainly start a job like this without fluent Hebrew, but you will feel more comfortable and succeed better if you work on improving your language skills over time.

How to learn Hebrew

The best way to learn a language is to use it as much as possible. When you really need to get your point across in a professional setting, it is probably a good idea to speak English. But if you speak Hebrew in one-on-one conversations with colleagues, during coffee breaks and outside the office, you will gradually become much more fluent.

Many olim choose to start their lives in Israel with a stint at ulpan. There are both government-run and private ulpan programs, which focus on acquiring language skills which are useful in day-to-day interactions. An ulpan can be time-consuming, so if you don’t need to start working as soon as you arrive, you may want to focus on learning Hebrew first and look for work later. If you can swing working during the day and going to ulpan in the evening, there are some programs with convenient schedules for employed people.

Bring your job with you from abroad

More and more olim are now choosing to come to Israel with a job they brought with them from abroad. This has the obvious advantage of not requiring Hebrew at all, but it’s a double-edged sword; if you don’t need Hebrew for work, it is likely to take you much longer to learn the language and integrate into Israeli society. However, it certainly makes life easier at the beginning and can be a very useful first job in your new home.

For more information on working in Israel, download our free e-book, Your Route to Career Success in Israel.

Whether you are considering a move to Israel or are already here, you have probably heard that a lot of English-speaking immigrants are working for companies in the United States. Some of the benefits of this arrangement are the ability to work in English, a more familiar workplace environment, the ability to use skills unique to the US market and the possibility of earning a higher salary.

But how do olim find these jobs? Where can you find US companies that are open to employing Israelis?

Outsourcing companies

There are a number of Israeli companies that specialize in outsourcing and hire Israelis to work for their clients in the US. You benefit from the network that the company has already built, which can make finding a job easier. On the other hand, whenever there is a middleman, you need to consider the expense of that intermediary and whether you want to work for an outsourcing company rather than directly with an American company.

Popular outsourcing companies include:

• Outsourcing to Israel
• Virtual Assistant Israel
• Trebuchet
• Urban Recruits

Job sites

Check out job websites and filter for work from home or remote positions. English-speaking Israeli job boards are likely to have more options for remote work with American companies. The advantage of these sites is that companies that are listed on these sites have chosen to appear there since they are specifically looking for Israeli employees.

These are some boards that focus on English-speaking jobs:

• Nefesh B’Nefesh Israel Job Board
• Janglo
• Anglo-Israel Job Network
• Jobs In Israel For Native English-Speakers

Research companies

Make a list of the companies in your industry that you might like to work at. Then do some online research to see who their employees are. Do they have employees who clearly live in Israel? Or perhaps they have a remote work policy and hire employees from different areas of the US or abroad? Even if these companies aren’t specifically looking to hire Israelis, there’s a chance that they would be open to hiring someone living in Israel. Apply through the regular channels and emphasize that you would like to work remotely.

Here are some websites where you can find remote jobs (although you have to check whether specific companies will hire residents of Israel):

• We Work Remotely
• Remotive
• Jobicy
• No Desk
• Dynamite Jobs

Networking

It’s been said before that many jobs in Israel are procured through networking. You can often get a job based on who you know, and that is true for remote jobs for US companies as well. Go to networking events, connect online to people in your industry and tell everyone you know that you’re looking for work in an American company. The more people you know who are working for US companies (whether they live in Israel or the US), the easier it will be to find out about available jobs. 

The next step

Once you find that remote job, the next step is to figure out how you will get paid and how you will report your income to the Israeli government. You can find some general advice on this dilemma in the article: How to Work from Israel for a US-based Company. For individualized guidance, book a consultation with us at info@route38.co.il. 

Employer of Record services are becoming more and more popular in Israel and for good reason! They have the reputation of being specifically for US citizens who want to avoid being self-employed and therefore required to pay 15% of their income to US Social Security. But this is far from the only purpose they serve, and EORs are definitely not only for US citizens.

Save the hassle and expense of accounting

When you get paid from abroad, you set yourself up legally and report your income to the Israeli government. If you do this by registering as a freelancer, you need to conform to all the rules of freelancing, including invoicing, sending receipts, reporting your income bi-monthly or annually (depending on how much you make), deducting expenses and paying VAT (if you earn more than 120,000 annually). 

If you’re employed by an EOR, the company you work for pays the EOR and the EOR provides you with an Israeli pay stub, with taxes and other payments automatically withheld. You don’t need to hire an accountant or spend hours on pesky office work that takes you away from your actual job.

Save on currency exchange

Getting paid in foreign currency? As a freelancer, you have to maintain a bank account abroad or have foreign currency deposited in your Israeli account. You live in Israel, which means your expenses are all in shekels, so it’s pretty inconvenient and expensive to be constantly converting foreign currency so you can pay your bills. International bank transfers can be expensive on both ends and the company abroad may not like paying extra each month for the privilege of paying you. Some companies will just flat out refuse to pay into a bank account outside of their country.

EORs take the burden off you. They may have bank accounts in other countries or accept the transfers into their Israeli account and take care of converting to shekels without your involvement. You get paid in shekels directly into your Israeli bank account and can pay your bills without any hassle.

Get a stable paycheck

With an EOR, you get paid the same time of the month every month. Taxes and other payments are already withheld and you don’t have to guess what your take home pay actually is. Freelancers are often unable to tell you how much they earn, since so many payments are taken off after they get paid by their clients and these payments aren’t the same every month. So there’s value in seeing it all spelled out clearly on your pay stub and only getting money in the bank which is actually yours to spend.

When you ask the bank for a loan or mortgage, it’s easy to show your income by producing your pay stubs. Banks sometimes look askance at freelance income, considering it less stable than income earned from a job, so having a pay stub can be a big advantage there.

Is an EOR right for you?

It’s hard to know if an EOR is right for you without knowing the specifics of your job, income and finances. We recommend booking a consultation with us to discuss the details of your particular situation. Whether you have already accepted a job, have been working abroad for a while or are considering accepting a new job, we can help you figure out the best way to structure this. At Route 38, we give you the best advice tailored specifically to you, with your best interests front and center. Email us at info@route38.co.il to book your consultation. 

Ask any Israeli how to get a job in Israel and they will tell you that connections and networking are a big factor. They might tell you a story about how they found out about a job through a friend of a friend, someone they served with in the army then pushed their CV to the top of the pile and when they got to the interview, they played Jewish geography and discovered that the interviewer was best friends with their former neighbor.

But what if you don’t know anyone in your field in Israel? What if you don’t have multiple relatives here and made aliyah after army age? Does this mean that your job prospects are doomed?

Of course not! Although some jobs are found through connections (what we Israelis call “protexia”) it’s also possible to find employment by applying the old fashioned way.

Here’s how to do it.

Create your Israeli CV

The first rule of thumb for an Israeli CV is to keep short and simple. Unless you’re in a specific industry where longer CVs are acceptable, keep yours to one page. Use bullet points and short sentences to describe your experience, starting with the most recent and working backwards. If you previously worked in a different field or in a job that’s not relevant to the one you are applying for, leave it off altogether, since it won’t help make your case.

Include your full name, phone numbers and email address. Some Israelis include their addresses on their CV but that opens up the possibility of potential employers thinking you live too far away or making assumptions about who you are based on where you live. It is not customary to include a picture and is no longer customary to add your marital/family status.

List your skills front and center, as they may not be obvious from your list of previous jobs. Include your education, but unless you are very young, don’t include where you went to high school.

Tailor each CV to the employer you are sending it to, emphasizing the skills and experience they will care about and de-emphasizing or excluding those which are less important. For instance, if you are applying for a teaching position, the fact that you are handy at using Word is not important, but if you are applying to be an office manager you want to include that and leave out your experience as a classroom teacher.

Search for job postings

Once you have a CV that’s market-ready, start looking for potential jobs. Social media is a great source of job postings. There are a number of Facebook and LinkedIn groups that are dedicated specifically to job posts. 

Remember that if you can find jobs on social media, potential employers can find you there too, so ensure that all your profiles are professional looking. If your profile picture shows you drinking beer with your friends, now is the time to change that. Check that your LinkedIn accurately represents your skills and experience, as it effectively serves as a second resume.

There’s no shame in posting on your social media that you are looking for work. You can state that you have just made aliyah or that you are looking for your next challenge. The more people that know you are looking, the more likely that someone (sometimes even the most unexpected someone) will send a relevant job post your way.

Aside from groups that aggregate job posts, there may also be groups for professionals in your field. That’s a great way to find out about available jobs as well as connect with people in your industry.

Job postings can also be found on Israeli job boards. Nefesh B’Nefesh manages a job board specifically geared toward olim, including many positions that don’t require much, or any, Hebrew. You can also search job listings in English on the Janglo website. Search in Hebrew on sites such as Jobnet, Drushim and AllJobs.

Write a cover letter

Never send an email that just includes an attachment! Instead, write a cover letter and send it in your email to the employer or recruiter. Don’t make the cover letter part of the file with your CV, send it directly in the email. A good cover letter is no more than four or five lines and stresses which skills and experience make you perfect for this specific job. 

If you know the name of the person who will be reading this letter, start with Dear [first name] to personalize your message. If you don’t, leave off the salutation. Do not write “Dear Sir/Madam” or “To whom it may concern.”

Consider using an AI tool such as ChatGPT to improve your cover letter. Write a draft and then run it through AI software to make it even better. Don’t forget to check it for mistakes (they do occasionally happen) and tweak it if it comes out a little bit too generic.

Proofread your CV and cover letter

Before sending, proofread, then proofread and proofread again. Even better, ask a few friends to look over your CV and cover letter before you send them. Typos and grammatical mistakes make you look sloppy, and if you are applying for a position in which language is important (like teaching, sales or marketing), mistakes are even more off-putting. Pay attention to the tenses as well. Choose either past or present but don’t zigzag between the two. You don’t want your CV thrown away because it didn’t look professional! 

Follow up

Immediately after applying, send an email or LinkedIn message to the recruiter to check that your CV was received and to reiterate your interest in the position. The first reason to do this is because most companies have bots filtering the CVs before they even reach the recruiter, so it’s possible that your CV was never actually seen by a human being. The second reason is that this will help you stand out. Most people never follow up, so when you reach out to the recruiter you demonstrate your drive and determination.

Job searching is not like dating

You don’t have to see where one job application goes before applying to another. In fact, the more jobs you apply to, the better your chances of getting called for an interview and getting the job. Devote a certain part of each day to reviewing the job listings and applying to whichever jobs seem relevant. 

Sometimes job posts will add requirements that they might be flexible on for the right candidate. They might prefer to hire someone with 3-5 years experience but your skills and two years might just be enough to impress them. They might list proficiencies in certain technologies but be willing to train you in the one you don’t know, if everything else seems right. So be bold and apply even if you don’t meet every single one of the requirements. 

Be aware that the opposite is true as well. If you are overqualified for the job (for example, the ad asks for 2-3 years of experience and you have 10), don’t be surprised if you don’t get a response to your application. That’s because the recruiter wants to hire someone less qualified and pay them a lower salary. He knows that even if you compromise on a lower salary in order to get that first Israeli job, you won’t be satisfied with the compensation for long and won’t stay in the job for the long haul.

Give networking a chance

If you’re seriously looking for a job, there’s no reason to stick to just one method. Cold applications certainly have their place, but it’s also a good idea to start networking. Even if you don’t get your next job through a connection, you never know when that network will come in handy. Connect to people in your field or related fields on social media and at in-person meetups. One-on-one coffees with relevant connections and attendance at general networking events will create that community that will help you further your career. And you might even make some new friends! Check out our article on How to Build a Network in Israel for more information on how to do this well.

Job searching is a little bit like dating

There is one similarity between job searching and dating – you only need one to work out. That right job is out there somewhere. It might take a little while and some effort to find it, but perseverance pays off in the end.

It is often said that job-hunting in Israel is heavily based on “protexia” (connections) and there is definitely some truth to this. As an oleh, you might think that you are at a disadvantage, not having old school and army friends to rely on for support. And if you’re experienced in your field but have no former colleagues to help you find a job, that can be concerning as well.

But here’s the good news: Networks can be built at any age and at any point in life, and the prevalence of social media in our lives means that connections can be created virtually as well. Connections with people often begin online and become real friendships later on. Israelis are hard-wired to help others, as we have all grown up on values of chesed and kindness, so even a distant connection can be the one who will help you land a job.

You can start building your network even before you start actively looking for a job in Israel. Connect to people in your field and related industries on LinkedIn. Comment on their posts, ask questions and show interest in what they share online. Join industry-related and general job groups on Facebook and LinkedIn. Contribute where you can and connect personally to people in these groups who you would like to know in real life.

Israelis that are currently in the US are a great resource as well. Reach out to founders and ask them to meet for coffee and attend events happening in cities around the US. For instance, Israeli Mapped in NY and Israeli Mapped in Boston list Israeli startups in those cities and hold get-togethers for their members.

Once you are in Israel, it’s a good idea to attend networking events. These take place all over the country and many of them are in English (although you can always go to the Hebrew ones and find people who want to practice their English with you). Get to know people, write down who they are and what they do and ask them how you can be of service to them. When you get home, search for the people you met on social media and connect to them there. Write them a note about how much you enjoyed meeting them and will keep them in mind when you hear of someone needing their services, hiring in their field etc. 

Ask to meet some of them one-on-one for coffee, to continue the conversation you started at the event or to dive deeper into how you can help each other. (Remember, if you issued the invitation, coffee is on you.)

You can also join small networking groups that have regular events and where members try to help each other out as much as possible. There are BNI groups all over Israel and there are a number of English Speaking Networking groups as well. ESN combines professional development with networking support and also hosts occasional large events.

Don’t underestimate the power of “friends of friends.” Ask your friends who they know in your field and request they introduce you, so that you can connect to those people and be mutually helpful to each other. If you’re applying to a company, it pays to ask your friends whether they know someone who works there and can help get your CV seen. If a friend asks them to use their protexia as a favor to them, they might do it even if they don’t know you personally. 

When you’re actively looking for work, let people know what kind of job you seek and ask for leads of places that are hiring. You won’t find every relevant job ad on your own, so it’s great to have people looking out for you and sending you relevant ads that they spot. There are also jobs that aren’t widely advertised or haven’t been publicized yet, which you can find out about from connections. Don’t be afraid to look “desperate” by letting people know you are on the job hunt. It’s just like dating; if you don’t tell people you want to be set up, it won’t happen. Put the word out there that you are looking and you will get help from friends and strangers alike.

Lastly, don’t neglect your network once you have a job. You never know when you will have to rely on it again. And even if you never need it yourself, you will have the privilege of helping others advance their professional careers by utilizing your own protexia, just like a true Israeli.

Finding a job in Israel is often the biggest hurdle in the aliyah process and it’s compounded by the fact that the hiring process can be quite different from what you are used to. We’re here to clear up some of that confusion and provide clarity on what to expect. If you haven’t read our post on how to get a job in Israel, start there and then come back here to read about what happens when you apply for a position.

Step 1: Your CV lands in a pile

When you send your CV to a company, first a robot goes through the CVs to weed out totally irrelevant applications. Then, your CV lands in a pile of resumes from all the appropriate job seekers who have applied for the same position. An HR employee and the hiring manager on the team will skim through all the CVs to see who seems suitable. Notice that we said skim and not read, because they tend to glance at each one and make an almost-instant decision about whether to contact you. Your CV must have all the important information on top, be easy to read and be tailored to the job you are applying for. Make sure your skills and experience are easy to spot and relevant to the position.

Step 2: Phone interview

If your CV stood out, you will get a call or e-mail from an HR representative asking you to interview for the position. Companies will often start with a 15-20 minute phone interview before asking to meet you in person. Sometimes, you will get a call out of the blue and be expected to interview on the spot. If this is inconvenient, let them know very politely that this isn’t a good time to talk and schedule a time where you can be fully present. 

To prepare for this call, research the company online, review the job description and be ready with an answer to the question, “What are your salary expectations?” It’s best to give an honest answer when asked, so that you don’t waste your time or theirs continuing in the process with a company which won’t satisfy your salary needs. 

Because each company has a slightly different hiring process, this is the time to ask what the next steps are so you are prepared for whatever comes next.

Step 3: In-person interview

If the phone call went well, you will likely be invited to an in-person interview. This is the time to showcase what you bring to the table as well as to ask questions about the job expectations and get a feel for whether this job is the right fit for you. You’ll want to understand the hours required, the tasks you will be expected to complete and who you will be working with. For instance, if you’re being hired to interface with people in the US, will you be required to work American hours? This is an especially important question if you are interviewing for a position in sales, customer support, customer success or marketing. 

You also want to pay attention to the general atmosphere of the company to determine whether this is a place where you will feel comfortable and enjoy working.

Olim are often unsure what to wear to an interview in Israel, since the more formal wear they might have worn in their country of origin seems out of place here. The best way to determine what to wear is to look online at the company website and their social media to see how their employees are dressed. You want to dress similarly, but look as if you made a bit of an effort to look put together.

Step 4: Assignment and/or presentation

Companies in Israel sometimes ask you to complete an assignment in a fairly short deadline and/or prepare a presentation for your potential team members. The purpose of this “homework” is to determine whether you have the skills necessary for the job. You can look at this as another way to see if this job is a good fit for you. If you can complete the task with relative ease and enjoy doing it, you’re on the right track. But if it’s totally out of your wheelhouse, boring or frustrating, you may not want this job.

If you are asked to give a presentation, prepare for it so you go in confident and knowledgeable. If the presentation is in English, keep in mind that you may be presenting to people who are not native English speakers. They likely know all the professional terminology in English, but might not know other complex words, so stick to vocabulary they are likely to understand. 

Step 5: Checking your references

If the hiring team is seriously considering you, they will reach out to the references that you have mentioned on your CV. It’s important that you choose references who will say positive things about you, so make sure to list people you had a good relationship with. Ask them beforehand if they are OK with being listed as a reference. If they hem and haw, choose someone else!

If you can, let them know that you are in the advanced stages of a hiring process and they might be contacted in the near future. Tell them what job you are applying for and what skills are crucial for it. This gives them a chance to prepare and raises the likelihood that they will give a good impression of you. 

Step 6: Interview with the CEO

Depending on the size of the company, you may be asked to interview with the CEO of the company. In a small startup this is more common than in a big company, since you are likely to have an ongoing relationship with the CEO if you take the job. Find out what you can about him or her beforehand, ask about the company and show that you are excited about what the company does and how you can be a part of that.

Step 7: Negotiations

If you’ve made it this far, the next step is negotiating the contract. You will be offered a salary as well as other perks, such as number of vacation days and how sick days are paid. You don’t have to accept the first offer; negotiations are acceptable and expected. There are some companies that won’t budge, but there are definitely cases where asking for more – either salary or perks – can be successful. It’s important to negotiate politely and to decide for yourself what the minimum is that you will accept. It’s OK to walk away if their best offer is not acceptable to you. 

Once negotiations are over, you will get a contract to sign. Whether the contract is in English or Hebrew, it’s always a good idea to have a lawyer look over the contract and ensure that you aren’t signing anything you aren’t aware is written there. If you find something objectionable, ask for an explanation and possibly ask for it to be removed. Again, don’t sign just because you got this far. Only sign if you are satisfied with the contract and want the job.

Step 8: Start working

If you are currently employed, you will have to give notice at your previous place of employment and start working only after that. You can ask to start work a bit after that, if you feel that a short vacation will help you transition and start the new job with more energy. Depending on the company’s needs, they may be more or less flexible on start dates. In any case, they generally expect that you will start working pretty soon after the contract is signed.
The first days at a new job are always going to be challenging. Focus on learning the job, interacting with your colleagues and fitting into the company culture. Update your CV with information about your new job and maintain your professional network, since you may need it again sometime down the line. Most importantly, enjoy your new job!

The process of firing an employee in Israel is set out clearly by the law, and the termination process seeks to protect the rights of the employee. 

An employer can’t fire an employee without a hearing (shimua). The employer will send a notice to the employee inviting him or her to a hearing. This notice must include the reasons that the employee is being fired and be sent with enough advance notice for the employee to prepare for it. The employee can come alone to the meeting or bring a lawyer or other representative. He can refute the claims and make the case for his continued employment. Alternatively, he can waive his right to a hearing, if he so chooses.

If there is a legal reason why the employee can’t be fired, such as pregnancy or pending army service), this is the time to bring that up.

The hearing is not meant to be a formality, and the employer is supposed to seriously consider the employee’s argument before making a final decision. Nonetheless, most people who have attended a termination hearing do end up getting fired.

After the company has decided to go ahead with termination, a written notice will be sent detailing the date on which the employment is terminated. An employee who has worked at the company for at least a year is entitled to a month’s notice.

Within 14 days of termination (or 7 days after the employee requests it), the employer must send a letter of termination which states the start and end dates of employment. 

An employee who has been at this workplace for a year or more is entitled to severance pay upon being fired. Severance is one month’s salary for one year of work, unless the employee’s contract promises more. If the employer fires an employee shortly before the end of the first year of employment, this is likely to be seen by the labor courts as an attempt to avoid paying severance. If this happens, the fired employee should seek legal counsel.

If the employee has unused vacation days, the employer is required to pay a regular day’s salary for each one.

Now is the time for the employee to find out whether he is eligible for unemployment from Bituach Leumi, and if so, to apply for it. He should also tweak his CV and begin the search for new employment. 

If you are not happy with your job or you have found a better one, it may be time to quit your current job and move on. Israel is a small country and almost everyone is connected in some way, so it’s important to leave in a professional way and on the best terms possible. 

Make sure that you give proper notice according to the law. Israeli employment law states that an employee who has received a monthly salary in an organization for up to one year must give notice as follows: one day for each of the first 6 months of employment and two and a half days for each additional month of employment. If you have been working at the same company for over a year, you must give one month’s notice. 

An hourly or daily worker who has worked up to one year must give notice of one day per month of employment. A worker of 1-2 years needs to give notice of 14 days plus one day for each two months of work in the second year, with a cap of 20 days. A worker of 2-3 years gives notice of 21 days plus a day for each two months worked during the third year. After 3 years, the notice period is a month.

If your contract says that you must let your employer know that you are resigning earlier than the legal requirement, you can still give notice according to the law and no legal action can be taken against you. Of course, this might anger your employer, so consider whether you want to do this.

You will work as usual during the notice period and receive your regular salary. You and your employer have the right to agree mutually to shorten the notice period, but it can’t be forced on either of you. If you have vacation days saved up, you can use them during your notice period, unless your employer needs your services and insists that you work. 

You will want to let your senior bosses know in person that you are leaving before you write an official resignation letter. They will almost certainly ask why you are quitting. This is not necessarily the time to tell them every single thing you hate about working at their company. You can give one or two reasons that are true but not accusatory. Or you can simply say that you have found a better opportunity or want to change directions in your career. Mention some of the things you enjoyed or learned at the company to soften the blow and leave a positive impression.

Work out your notice in the best way you can. If the company has already hired a replacement, train the new employee to make the transition as smooth as possible. 

Once you have left, beware your instinct to badmouth your previous employer in public or on social media. Your comments may very well get back to your bosses and leave a bad taste in their mouths. Remember that you may need a recommendation from them someday or that they may be asked about you in the future by potential employers. Israel is, after all, a very small country.

Do you know your rights as an employee? We recommend having a general working knowledge of the employment laws in Israel. Employees who are not well-versed in their rights can be taken advantage of, and this can easily happen to olim who don’t ask the right questions (or ask the right people).

Additionally, there can be specific issues that you need in-depth information on, such as the intricacies of termination, maternity pay and pensions. Our goal here is to provide as much helpful information as possible, but if you need greater detail, here’s how to get it.

The Kol Zechut (All Rights) website is partially translated from the Hebrew site and includes many articles on all aspects of legal rights, from health and disability to immigrants and old age. There are numerous articles about employment issues, such as pensions, National Insurance, income tax, labor laws and more.

Kav LaOved is an Israeli nonprofit organization which provides individual help to employees who suspect that their rights have been violated or who want to better understand their circumstances. The organization has office hours and a hotline and can also be contacted via email. The website provides some English language brochures about topics such as work accidents, hourly workers and women’s rights in the workplace.

For more general information, see Nefesh B’Nefesh’s online article on Employee Benefits. This article covers some of the basics of the employee-employer relationship and Israel labor laws.

The Human Resources representative at your company is also a useful resource. In larger companies, there may be an entire HR department, but even in smaller companies, someone is in charge of HR. If you don’t know who that is, ask. The HR representative should be able to explain your pay stub, assist with specific questions and provide you with necessary forms. 

There is strength in community. You can easily get answers to employment questions by posting on olim social media groups, especially those that are dedicated to career discussions. Of course, not all these answers will be accurate, so take them with a grain of salt, but there is often a consensus on legalities and processes which can point you in the right direction. These groups can also provide firsthand experience of other olim, which is often invaluable.

Knowledge is power and this is certainly true in the realm of employee rights. Awareness can help you choose the right job, get what you deserve in your job and leave a job in the right way.

One of the biggest challenges of moving to any new country is finding a job and aliyah to Israel is no exception. It can be daunting to seek employment in a country where the norms are different from your home country, the primary language is Hebrew and everyone else seems to know each other. But have no fear; many olim are gainfully employed in Israel and you can be too.

Resume/CV

Your first step in your job search is to create a resume (or CV as it tends to be called here) that fits Israeli standards. CVs should be one page long and include a list of skills above your experience and education. If you’ve had many jobs, remove the oldest ones and the least relevant to the job you are applying for, so you can keep to the one page format. 

Whether you need a Hebrew CV is dependent on the industry you work in and the type of job you are looking for. Even many Israelis submit English CVs, especially in the hi-tech industry. It’s best to ask around in your industry (you can easily do this on a Facebook or LinkedIn group if you don’t personally know anyone who works in the field) to find out what language your CV should be in.

Until recently, CVs always included personal information like marital status, children and home address, so you might be told to add these to your CV. But most experts in job hunting are now recommending against this, since these personal details can cause prejudice.

When sending a CV to a company, include a cover letter in your email of up to 5 sentences, detailing why you are the right person for this job. Your cover letter should be tailored to the job you are applying for, so send a different one for each application. 

It’s important to have references prepared as companies will often ask for them. If there’s no room on your CV to list them, you can leave them out, but make sure that you have names ready and that you have asked for permission to share their contact information. Be sure to add a line on your CV that says “References available upon request.” If you are asked for references, provide names, phone numbers and email addresses.

Job Postings

One place to search for a job is online. There are a number of Hebrew job posting websites (some may require a paid membership) and the Nefesh B’Nefesh Job Board and Janglo website list jobs that are geared specifically to olim, many not requiring any Hebrew. Jobs are also listed on Facebook and LinkedIn groups, especially those catering to English speakers. Cities with large Anglo populations tend to have local Facebook groups which may have job opportunities and there are also groups devoted to job postings and career advice.

“Protexia”

It’s true that a lot of Israelis find jobs through relatives and old army buddies. You may not have those, but you might have friends who made aliyah before you, acquaintances who are willing to lend a hand and Facebook friends or LinkedIn connections who are happy to support fellow olim. Put yourself out there by calling and posting on social media about the kind of job you are looking for. This is commonly done by Israelis, whether they are looking for their first job or have left their previous job for whatever reason. You may hear about positions that haven’t been advertised yet or get your CV on the top of the pile because of a personal recommendation, so this is well worth doing.

Reaching Out to Companies Directly

If there’s a company you would like to work for, you can reach out directly to their HR department and ask if they are hiring. Even if they aren’t, they will often keep your CV on file and contact you later if an appropriate position becomes available.

Working for a Foreign Company

If you have previously worked in a company with offices around the world, find out if there’s an Israeli office you can apply to work at. You might even be able to transfer your existing position to the Israeli office. It is also possible to work for a company outside of Israel, if they are comfortable with hiring a remote employee. Many olim work from home or in a shared workspace for a company based in their home country. 

This won’t always work, since many local subsidiaries of global companies are not interested in putting an employee of a foreign subsidiary on their books due to factors such as budget, headcount restrictions and payroll imbalance. It never hurts to ask, though!

Headhunters, Career Consultants and HR Companies

Depending on your industry, you may find that a headhunter can help match you with a position that’s right for you. Headhunters specialize in helping companies (usually large ones) find the right employee. They are paid by the firm which is hiring and do not take payment from job seekers.

Career consultants help people navigate the job search. They are paid for their time and expertise, regardless of whether you find a job. According to Marna Becker of MRB Consulting, career consultants can help you by sharing their built-in network, improving your CV, boosting your networking skills and troubleshooting why you’re having trouble finding a job.

Career consultants are especially useful if you are looking for your first job in Israel, don’t have a strong network here and are not familiar with the norms and company culture in the country. They are also helpful if you’re just entering the workforce and need help deciding what profession to pursue based on your skillset, personality traits etc. Additionally, a career consultant can be of great assistance if you’re contemplating a career change and aren’t sure what you want to do or how to transfer your skills to a new field.

There are also human resource companies which specialize in placing employees in positions. Be aware that these companies are sometimes also the employers, and the salary and perks of the job may differ from those offered to the employees of the company proper. 

When to Apply

If you’re making aliyah now, be aware that Israeli companies tend to want their employees to start sooner rather than later, so searching for a job months before moving to Israel is likely to be futile. Use that time to check out the job market in your field and make some connections, and start applying shortly before aliyah or once you are already here.

If you are currently employed in Israel, make sure you know how much notice you need to give your current employer, so you don’t end up in a situation where you can’t take a job you were offered due to an early start time. (The notice period is generally a month if you have worked at a job for at least a year.) If you’re on maternity leave, start looking for work close to when you are willing to start a new job. 

An exception to this rule is if you are in a field where contracts are on a set schedule, like education. Conventional wisdom is to start searching for a position in education around Pesach time, in order to start in September.

The Interview

Job interviews are often less formal and this can take some olim by surprise. Questions might range from the professional to the personal, and don’t be surprised if there’s some Jewish geography mixed in. Candidates are often asked what their salary expectations are. You can sometimes turn the question on them and get them to tell you what they want to pay, but this won’t always work, so be prepared with a range and be open to negotiation. 

Job hunting in Israel may take some time, but the jobs are out there and you can certainly find one. Wishing you a successful and smooth job search!

Israeli labor law has determined a minimum number of vacation and sick days, but company policies may differ and you may be entitled to more benefits than legally required. Here we delineate what is legally required.

National Holidays

Employees are entitled to up to 9 paid vacation days for national holidays, assuming these days fall on a weekday. These holidays are religion-dependent. For Jewish workers, the days are:

1. First day of Rosh Hashanah
2. Second day of Rosh Hashanah 
3. Yom Kippur
4. Sukkot
5. Simchat Torah
6. First day of Pesach
7. Last day of Pesach
8. Yom Haatzmaut
9. Shavuot

Employees who usually work on Fridays or Shabbat get paid for these vacation days if they fall on a weekend, but employees who work Monday-Thursday are not paid extra for national holidays that don’t fall on a work day.

Additionally, there are other days which are not national holidays but which any Jewish employee can take as one of their accrued vacation days (up to one day per year). These are called “Yemei Bechira” (chosen days):

1. Erev Rosh Hashanah
2. Tzom Gedalya
3. Erev Yom Kippur
4. Erev Sukkot
5. Hoshanah Rabbah
6. Sigd
7. Asarah B’Tevet
8. Taanit Esther
9. Purim
10. Shushan Purim
11. Erev Pesach
12. Erev Shvii Shel Pesach
13. Mimuna
14. Lag B’Omer
15. Erev Shavuot
16. Shiva Assar B’Tammuz
17. Tisha B’Av

Annual Vacation 

An employee’s allowance of vacation days depends on whether the job is full or part time, how long the employee has worked at the company and how many days a week the job requires. The minimum number of annual vacation days for a full time employee is 12. 

It is within the employer’s rights to determine when an employee can take vacation and it is legal for the office to be shut down for a specific time period and all employees required to take their vacation at that time. If the enforced vacation is for 7 days or more, the employee must be informed at least two weeks in advance.

Employees are entitled to take one vacation day a year at any time, without need for the employer’s consent, on the condition that the employee notified the employer thirty days in advance.

Days Off Which Aren’t Vacation Days

Employees who are absent for reserve duty, a worker’s strike (unless they are government employees), maternity leave, mourning/shiva or national elections do not have these days deducted from their annual vacation days.

Sick Days

A salaried employee who works full time at once place of employment is eligible for 18 sick days a year (1.5 per month). Sick days can be used for one’s own sickness or in order to care for a family member who is sick. Legally, the employee isn’t paid for the first sick day. The second and third days are 50% pay and the fourth and on are 100% pay. In order to be eligible for this payment, the employee must provide a sick note from a doctor.

Contract Negotiations

Some companies stipulate in their contracts that the employee is entitled to more sick days, that they pay for the first sick day as well or that they offer more vacation days than stipulated by law. When negotiating a contract (either for a new job or in the case of a promotion) these stipulations can often be negotiated. Sometimes, despite a company standing firm on the salary they are offering, they are flexible on vacation and sick days. It is considered acceptable to bring this up in salary negotiations and may result in an improvement in working conditions.

If you’re just entering the workforce in Israel, you may find that the company culture here is different from what you are used to in your home country. Not every company in Israel is the same, and there are differences between industries and locations, but a group of working women in Israel who belong to the ImaKadima Facebook group have helped us compile a list of characteristics that you are likely to encounter in the Israeli workplace.

Bear in mind that Jerusalem offices tend to be more toned down than offices in the Tel Aviv area. Jerusalem offices are often more heavily religious and that affects workplace culture as well. Some of the characteristics described below are true across the board, while others are more likely to be experienced in the Merkaz (center of the country).

Formality (or lack thereof)

Israel tends to be less formal in general and this is never more true than in the workforce. It starts with the way people dress and talk and even affects management.

Most companies do not have a dress code and casual dress is the norm. There are very few companies where people wear suits to work and many workplaces where jeans and flip-flops are perfectly acceptable.

Israelis tend to speak at work in the same way they speak to their friends or random strangers on the bus. You might be surprised to hear people speaking loudly, very directly and even sounding like they are having an argument, but none of these things are considered rude in Israel. It’s likely that you will be expected to make your opinions known and not beat around the bush.

There is less deference to hierarchy at Israeli companies. Management tends to be more accessible and more open to socializing with employees. Bosses (or their HR departments) often organize mandatory “fun days,” which can be very informal. Alcohol is often served at company events and people are encouraged to let their hair down a bit.

Vacations and absences

Israeli law requires minimum vacation days, but employers can dictate when those vacation days take place. Some companies have mandatory shutdowns during periods when many employees want to take off or when productivity is low. So you may find that your company is closed on chol hamoed or during the last two weeks of August. In some companies that stay open, there is a much smaller staff since a lot of employees choose to take their vacation days at those times.

A large number of Israelis serve in the military reserves (miluim) until their early forties. So your colleagues might be off of work for an extended period while they are in the IDF.

International travel has become popular in Israel in recent years, and it’s not unheard of for employees to take off for a week or two in order to vacation outside the country.

Blurred Boundaries

If you’re used to very strict boundaries between your personal and professional life, aliyah is a good opportunity to let go of them. Coworkers tend to be open about their personal lives, discussing children, spouses and even politics. Colleagues invite each other to family simchas and give each other gifts for events.

Hot topics like politics or religion are not taboo and heated discussions can happen, with everyone still staying on friendly terms. Coworkers may share their feelings and be more free with hugging and kissing. Sometimes personal discussions veer into gray areas, such as asking a woman about her plans regarding getting pregnant. You don’t have to answer any questions that make you uncomfortable or could lead to discriminiation, but it’s best to avoid them elegantly.

In many workplaces, it is acceptable for family and friends to come by to say hello. Even children are welcome in these offices, as long as they aren’t too disruptive.

Work Hours

The Israeli work week is fairly long. A full time job (without overtime) is 42 hours. Many companies work Sunday to Thursday, which translates into nine-hour days. Some companies (and especially governmental institutions) have shorter hours for working mothers.

If you get a job offer with a global salary, this means that you are expected to work overtime. The exact details must be laid out in your contract and adhere to the laws on compensation for overtime.

Some workplaces have electronic time-clocks, where you clock in when you arrive and clock out when you leave. The time clock protects both you and the employer in case of a dispute about work hours. Mas Hachnasa (Israel Tax Authority) requires that hours worked appear on your monthly pay stub.

Salaries and Benefits

Salaries are paid monthly (by law they must be paid by the 9th of the next month). This might be a culture shock if you are used to getting a paycheck every two weeks. Most employers will take your bank account information and pay you by direct deposit.

It is common for employers to give their staff presents before Rosh Hashanah and Pesach. These might be gift baskets, housewares or a gift certificate. Some companies allow their employees to choose a gift from a list of options. Other employers will not give gifts at all or will give something symbolic, like a bottle of wine. Note that gifts from employers are often taxable.

Breaks

Smoking is ubiquitous in Israel and with it cigarette breaks. Coworkers may use their smoking breaks as a time to socialize or to talk business. Lunchtime is also a social occasion at Israeli workplaces. Colleagues tend to eat together, talking, laughing and getting to know each other. Employees may order in, get takeout from a nearby restaurant or bring their own food. 

Some companies (especially in the hi-tech industry) provide their employees with lunch cards such as 10bis and Cibus, which give them free meals at certain establishments. (The amount on the cards is considered taxable income, since, after all, there is no such thing as a free lunch.) There are also workplaces which provide catered lunches for their staff. Some even stock the fridge with breakfast foods and snacks, so employees never have to leave the building during the workday.

Family First

Israeli employers are generally respectful of family obligations and events, such as bar mitzvahs, britot, weddings and funerals, and will understand when an employee takes off time to attend them. When there is a death in an employee’s family, this will be announced to all the workers and some of them will make the effort to attend the funeral and/or shiva. An employee sitting shiva is legally entitled to all those days off.

Judaism in the Workplace

Depending on the location and the people who work at the company, the environment might be more or less religious. But even the most secular workplaces are likely to hold holiday parties before major Jewish holidays. Most companies will make arrangements for kosher food at parties and other events if they know that this is important to some of their employees. Even if you are the only kosher-eating person in your office, there’s no need to be shy about asking for consideration of kashrut restrictions. Legally, Jewish holidays on which work is prohibited by Jewish law are considered paid vacation days.

Work Methods

Olim are sometimes surprised to find out that the customer isn’t always right in Israel. This is true as a consumer but also as an employee. You may find that your bosses are working under the impression that they know what’s best, even if customer feedback seems to be saying something different.

Organized methods and deadlines are not always a feature of the Israeli workplace. On the other hand, both management and employees tend to be extremely dedicated to getting the job done, even if it requires working crazy hours or pulling people off other projects to complete a goal.

Communication

We already mentioned the lack of formality in speech and this includes using casual army slang and references, swear words and divulging TMI (too much information). Israelis talk fast and interrupt each other and this is not considered rude. They do small talk and Jewish geography, but just as often will cut out the small talk to get to the main point as quickly as possible. Who you know is more important than what you know, so it’s important to establish connections, even if it’s as remote as your niece’s neighbor serving in the army with your colleague’s daughter. And don’t be surprised if your coworker offers to set you up with his best friend’s son.

You may find that your office relies less on email and more on WhatsApp and direct communication. A lot of offices prefer task management apps in order to cut down on email but important information may still be relayed informally. This preference for direct communication leads to meetings which may seem unnecessary to you, but which are considered vital by management. 

Adjusting Your Expectations

It will be much easier to get used to the differences in company culture if you come with an open mind and a readiness to learn. Let go of the ideas you brought from your home country and pay attention to how your colleagues behave. Before long, you will find yourself acting like an Israeli and wondering how you ever did business any other way!

One of the things you learn quickly in Israel is flexibility. Plans tend to change at the last minute, rules aren’t necessarily law and the food tastes nothing like it did in your home country. At the beginning of life here, these things can be frustrating, but soon you will start to see the benefits of agility and adjustment. 

One of the ways in which Israelis are flexible is in the definition of their careers. There are many Israelis who have one conventional career and stick to it, of course. But there are also a lot of Israelis who work more than one job in order to make a living. There’s the office worker who teaches exercise classes in the evening, the teacher who tutors on the side and the translator who also runs a marketing business, to name a few.

When you have two (or more) jobs, there are some Israeli laws you need to be aware of.

Coordination of Income Tax

If you are a salaried employee, the Income Tax Authority (Mas Hachnasah) provides guidelines to your employer for how much tax to withhold from your salary. Without instruction from Mas Hachnasa, when your employer becomes aware that you are receiving another salary, they are obligated to withhold the maximum amount of taxes.

In order to prevent most of your income going to taxes, you need to coordinate your income tax in a process called Teum Mas. You can apply for a Teum Mas online by providing information about your income sources, although it may be worth your while to stop by your local Mas Hachnasa office and walk it through with an agent. This may take more time, but oftentimes saves headache down the road due to misunderstandings or typos. You will need certain details from your employers, such as their Mispar Tik Nikuim (payroll tax number) and your expected annual income. Register at the Income Tax Authority in order to access the form for Teum Mas. The Teum Mas will arrive within a week or two of applying and you should then send this report to your payroll or HR department so they know the proper amount of taxes to be withheld.

In some cases, you may also need to communicate your dual income to Bituach Leumi. If you didn’t do so and you overpaid, you can request a return.

Unemployment Benefits

Working a second job doesn’t disqualify you from unemployment benefits. If you worked for two employers and one of them laid you off, you can continue to work at the second job and collect unemployment from the first one if you qualify. Your benefits will, of course, be lower than if you were laid off from your only job and were no longer working at all. You’ll need to submit pay stubs from your employer each month.

Entrepreneur with Multiple Clients

If you have multiple clients and don’t receive a salary, you must open a business with independent contractor files at the VAT office, Income Tax Authority and Bituach Leumi. You report your income and pay income tax, Bituach Leumi and VAT (if relevant) according to your total income from all your clients. This involves paperwork and it is recommended that you hire a tax consultant (Yoetz Mas) or accountant to help you with this. 

It is also possible to receive a salary from an Employer of Record such as Route 38. In that case, the clients pay the EOR and you receive a salary based on revenue collected. Payments and taxes are automatically withheld, just like they are for every other salaried employee.

Employee and Entrepreneur

If you’re supplementing a salaried job with a side business, you need to open files with the VAT office, the Income Tax Authority and Bituach Leumi. Your payments to Bituach Leumi will be deducted automatically from your salary and additional payments will be owed from your freelance income, taking into account what you have already paid as a salaried employee. 

As a freelancer, you are required to report your income to the Income Tax Authority. There is no need for a Teum Mas, unless you have more than one salaried position in addition to your freelance earnings. When filing your end of the year report, include your income as a salaried employee so your income tax is calculated correctly. This report should also include funds deducted from both the job and the business for pension or Keren Hishtalmut (education savings fund), as they will reduce your taxable income.

Israeli employment law protects pregnant women in several ways. In fact, there are some benefits that start even before pregnancy if a woman is undergoing fertility treatments. Full days off for fertility treatment are treated as sick days and individual hours can also be deducted (up to 40 hours a year for a full time employee). A woman cannot be fired or have her salary changed during an absence due to fertility treatments.

A woman is obligated to inform her employer of her pregnancy during her fifth month. Likewise, a woman who is hired at a new job while pregnant doesn’t have to disclose her pregnancy prior to accepting the job, unless she has reached month 5. Some women choose to let their employer know earlier, either because they are feeling sick and may not be performing at optimal level or in order to give their bosses more time to find a maternity leave replacement. The law allowing women to wait till five months protects them against discrimination, so each employee should consider carefully when the best time to disclose a pregnancy is.

Discrimination against pregnant women, in the hiring process or in the workplace, is illegal. A woman who was discriminated against can sue her employer in the labor court. This includes a prohibition of firing a pregnant woman because she is pregnant. If a company wants to fire a pregnant woman for a different reason, and that woman has worked at the company for more than 6 months, the employer must obtain special permission to fire her. A common case would be a company that is laying off many workers due to budget cuts and wants to include a pregnant woman in the general layoff. If a pregnant woman was fired without special permission, it is considered as if she was never fired.

Employers are also prohibited from lowering the salary or work scope of a pregnant woman, regardless of how long she has worked at the company. 

It is prohibited to require a pregnant woman to work overtime or night shifts. However, she can work overtime if she has consented in writing and provided a letter from her OB/GYN that there is no need to refrain from overtime. A woman can be asked to work at night (at least two hours between 10 PM and 6 AM) but she is within her rights to refuse in writing. 

If a woman has a documented high-risk pregnancy and is absent from work for 30 days or more, she is entitled to a Bed Rest Benefit from Bituach Leumi.

A pregnant woman can be absent from work for routine pregnancy tests for up to 40 hours (for a full time employee). These hours are paid for by the employer as if she worked.  A part time employee is entitled to this benefit as well, relative to the number of hours she works on a regular basis.

The spouse of a pregnant woman is entitled to use 7 days of their sick days due to her pregnancy or childbirth. This includes accompanying her to appointments and being present for childbirth. He can also utilize 3 vacation days after the birth of the child. If he wishes to take 4 or 5 days, those extra two days can be considered sick days. These days are not considered maternity leave and don’t negate the spouse’s right to split maternity leave with his wife.

For more information on the rights of pregnant women in the workplace, see the Kol Zchut website.

Mazel tov on your new baby! In between changing diapers and feeding this adorable munchkin, you may be worried about how you receive your maternity leave benefits. The good news is that you probably don’t have to do anything to make that happen, but of course, there are some exceptions.

Eligibility for Maternity Leave

Maternity leave refers to the amount of time your employer is obligated to hold your job for you. If you have worked for a year for the same company, you are entitled to a maternity leave of 26 weeks, only some of which is paid. If you have worked for your current company for less than 12 months, you are entitled to 15 weeks of maternity leave, all or some of which is paid. Your employer cannot prevent you from taking maternity leave or begin the termination process for a period of 60 days after your return. 

If you were employed by the same employer for a year before becoming pregnant, you will have pensions contributed on your behalf for the first 5 weeks of maternity leave. You must also deposit 6% during this time (usually laid out by the employer and deducted from your pay upon your return to work).

If you’re self-employed, you don’t need anyone to hold your job, so this is not relevant to you, but you do receive maternity pay from Bituach Leumi.

Maternity Pay

A woman who worked 10 out of 14 months or 15 out of 22 months prior to her birth is eligible for 15 weeks paid maternity leave from Bituach Leumi. A woman who worked 6 out of 14 months prior to her birth is eligible for 8 weeks paid leave.

According to the Kol Zchut website, “The maternity allowance is computed per day according to the gross salary of the employee in the three months preceding the first of the month in which the leave began, divided by 90, or according to the total income in the six months which preceded that day, divided by 180 (whichever is higher, up to the maximum established amount).”

If you’re self-employed, payment is based on the three months preceding your maternity leave or the same three months in the previous year, whichever is higher. If you’re both a salaried worker and self-employed, maternity pay will be based on both incomes.

How to File for Maternity Pay

If you’re a salaried worker and your employer has an arrangement with Bituach Leumi, you will automatically receive your maternity pay in a one time payment during your maternity leave. If you are self-employed, you will get a payment based on your advance payments to Bituach Leumi and adjustments will be made later if necessary. If you were receiving bed rest benefits or unemployment, you will also receive your maternity pay automatically.

If you don’t fall into any of these categories or you gave birth at home and not in the hospital, you will need to file a claim with Bituach Leumi. This can be done up to 9 weeks before the due date by mail, fax or at a local branch, or after birth online. These are some of the documents you may need:

• Confirmation of birth from the hospital (if you gave birth abroad)
• Newborn registration at Ministry of Interior (if baby was not born in a hospital)
• Permit from the Ministry of Health or Ministry of Economy (if you received vocational training from the government)
• Reserves book and certificate of discharge (if you are a newly released soldier)
• Proof of National Service (if you have just completed it)
• Bank account information (if you are a foreign worker or foreign passport holder)
• A completed Form 355 from Bituach Leumi. Sections 8, 9 and 10 of this form must be completed and signed by your employer.

In most cases, maternity pay arrives automatically in a new mother’s bank account. If you fall into one of the categories that require filing, the process is fairly transparent and shouldn’t be too difficult. You’ll have plenty of time to focus on yourself and your new baby.

Financial advisors will tell you that pensions are just as important as salaries, and for good reason. Although it seems counter-intuitive, retirement expenses are just as high if not higher than what you are spending now. This is because of new expenses such as medicine and medical treatments and increased spending on things like transportation and food. Taxis often replace driving, busing or walking and the ability to get to discount stores may be curtailed. Some retirees are still marrying off children or helping out their young adult kids. And basics like phones, electricity and home maintenance don’t change.

That’s why smart financial planning includes planning for retirement and luckily, the Israeli government has regulated this so that every citizen has some form of pension.

Bituach Leumi

All citizens who have contributed to Bituach Leumi for 12 years are eligible for a state pension. Israeli residents start paying into Bituach Leumi at the age of 18 (unless they are in the army or National Service). If you are working, this payment is deducted automatically from your paycheck. If you are a business owner, the government collects this payment from you directly. The basic pension starts at 1,558 NIS a month per person and 2,430 NIS for a couple, so while this is a nice amount to have, it’s not going to go very far in covering your living expenses. Furthermore, the amounts paid out by Bituach Leumi might be reduced due to actuarial issues.

Private Pensions

Your employer is obligated to set aside at least 6.5% of your salary or the average wage in the economy (whichever is lower) every month for pension insurance. You also pay into the insurance, at the rate of 6% of your salary. 

Your employer is also obligated to set aside severance pay to the amount of 6%, or 8.33% if you have signed a Chapter 14 clause. A Chapter 14 clause states that the employee is entitled to receive exactly what is in the fund (no more and no less) at the time of termination, regardless of whether the parting of ways was initiated by the employee or the employer. If you don’t use your severance pay, it becomes part of the pension paid out to you in retirement.

Just like Bituach Leumi, employees have their pension deducted automatically from their paychecks, while business owners have to set this up on their own.

Multiple Pensions

Many companies choose a pension provider for their employees and this may result in one person having several pension plans. In recent years, the government has mandated that an employee can choose which plan he wants to contribute to, regardless of the company’s official provider. So if you get a new job but already have an existing plan, you can continue to contribute to it and don’t have to open a new one.

If you do have multiple pensions, check whether you are paying fees on each one. If that’s the case, you may be better off consolidating them into one, although there are cases where it makes sense to keep them separate. If you merge the plans, make sure that your pension is now being paid into the consolidated plan.

Catching Mistakes

It’s important to check that your pension is actually being deducted, because if a mistake is made you may find yourself suddenly losing most of your salary to a retroactive pension payment. 

In general, we recommend looking at your payment stub (tlush maskoret) carefully each month, to check that everything is in order. Payroll mistakes can happen and if you’re only looking at the final number at the bottom, you may miss them.

How to Choose a Pension Plan

There are many pension providers and it can be extremely confusing to understand the differences between them. Revenues, management fees,  level of investment aggression, annuity vs. lump sum payments, various insurances connected with the policies and more differences need to be taken into account when choosing a plan. To complicate matters further, insurance agents are often representatives of one specific company, so they aren’t giving you objective advice. 

If you’re starting fresh or want to switch pension companies, it is advisable to consult with an independent insurance agent who can explain what your options are and recommend a plan that meets your needs.

Thank you to Motty Handler, registered insurance agent, hmotty@gmail.com, for his help in writing this article.

Whether you have lived in Israel for a number of years, are considering aliyah or are packing up to make the big move, one of your biggest concerns is surely how to make a good living in Israel. Stanley Fisher, former President of the Bank of Israel, famously remarked that he couldn’t understand his own salary slips. Salaries in Israel are made up of a number of components and understanding them is key to analyzing your financial situation. 

Let’s clarify some of the basic terms that are used to describe the required and optional tax and social benefit obligations in Israel. 

Ø  Bruto – Gross salary. Generally the base salary that is offered to you in a contract.

Ø  Neto – The amount of money actually deposited in your bank account on a monthly basis, after deductions of income tax and other required payments are removed. Note that the Israeli standard is to be paid monthly, not bi-weekly or bi-monthly.

Ø  Mas Hachnasa – Income tax. Incurred at a graduated rate. Income tax is removed automatically from your salary, and in most cases, there is no need to file taxes at the end of the year. Income taxes are calculated on an annual basis, yet paid out on a monthly scale. We will dissect this area in a later post.

Ø  Bituach Leumi – National Insurance coverage. Often compared to US Social Security benefits, but they are actually very different. (I’ll compare these two institutions in a future article.)

Ø  Keren Pentzia – Pension fund deposit. This is a mandatory benefit requiring the employer to pay a minimum of 6.5% of the monthly bruto total and the employee to deposit a minimum of 6% of bruto. Each employee has the ability to choose the investment option they prefer. This will also be the subject of a later post.

Ø  Kupat Gemel – Mutual fund investment. Similar to a pension fund in structure and purpose, but not mandatory.

Ø  Bituach Menahalim – Pension for managerial positions and above. 

Ø  Keren Hishtalmut – Translated as a “Study Fund.” The initial purpose was for an employee to accumulate a base in order to apply for continuing education. In reality, it now acts as an additional, optional short term tax free savings vehicle. Some employers offer this as an added benefit, but it is not available across the board.

Ø  Ovdan kosher avodah – Additional, optional long term disability insurance. This perk is generally only offered in the hi-tech sphere.

When you are offered a job in Israel, you will be told what the bruto salary is and what additional benefits (if any) are provided. An employer will not be able to tell you what your neto take home pay will be, since this is based on many factors outside his control. You can get an idea of what your neto salary will be by using this calculator.

Got any more questions about how your neto salary is determined? Comment below and I will respond.