Employment in Israel

Israel's pioneering agricultural economy once based itself mainly on exporting oranges. However, the country has since become a leading high-tech powerhouse, driving diverse initiatives and global collaborations across multiple sectors. Don't worry, we still have the best oranges.

Today, Israel is a hub for international opportunities, particularly for English speakers seeking jobs or careers. It provides the resources needed for success in one of the world’s most robust economies, with a high employment rate among OECD member states.

Job Search

Eager to kick-start your job search? Here are some essential steps to get you started:

1 Resume

As in most Western countries, a well-written resume is the first thing you’ll need when seeking a job. In Israel, it’s common to provide a resume both in English or in Hebrew. If you don’t have one, there are plenty of great online resources to help you create one.

2 Job Interview

Once you have a proper resume, you can send it out to various potential employers with a cover letter when asked for. If they like your CV, you might get called in for an interview. When that happens, you can refer to several online resources to help coach you for the job interviews if needed. Many potential employers may want to conduct an initial phone or online interview before calling you in. Good online resources can also help you prepare and ace those interviews.

 

10 Things You Should Know about Finding a Job in Israel

  1. Adding a short ABOUT ME section under your initial information covering your personal skills is recommended instead of just summarizing your accomplishments. If you have difficulty putting these into written words, keep them out of your CV and bring them up during your interview.
  2. If you’re applying for a job in the public sector, you will need to get your degree recognized in Israel. The private sector, however, will not require degree recognition.
  3. Unlike other countries in the West, the appropriate dress code for Israeli job interviews is business casual – no need for a suit and tie. However, if your potential employer is not a native Israeli, it may be wise to dress accordingly, considering the weather conditions. (We don’t recommend wearing a 3-piece suit during August in Tel Aviv).
  4. Come up with a ballpark idea of your salary expectations in advance. Israeli employers often request to hear this expectation before revealing how much they are willing to pay.
  5. When hunting for a job or looking to get a raise, it helps to know how much your Israeli counterparts are getting paid. Find out more here.
  6. Suppose you’re looking for a job in the high-tech industry. In that case, your level of Hebrew is less relevant as the entire industry mostly operates in English (being a native speaker can definitely be an advantage).
  7. Israeli employers value the concept of ‘Rosh Gadol’, which translates to “Big Head.” It refers to someone who goes beyond and above the call of duty and the job demands – an absolute “out of the box thinker.”
  8. Many jobs, usually in the tech sectors, have a unique benefit for employees called ‘Ten-Bis’ or ‘Cibus.’ It is a prepaid card for most restaurants, supermarkets, and pharma chains. Getting one is like owning a status symbol.
  9. When you arrive for an interview, bring good vibes and a positive attitude. Most potential employers will engage in small talk to see what kind of person you are before getting into your credentials.
  10. Expand your social circle and build new connections. In Israel, networking holds significant value, and you never know – your neighbor’s dog walker’s father might happen to be the CEO of the company you wish to work for.

Working Remotely

In the wake of the global COVID-19 pandemic, a remarkable shift has occurred in the worldwide workforce, transcending geographical boundaries. Once a rarity, telecommuting has become the new norm, sweeping with it both local and international employers. Companies in Israel and worldwide have swiftly adopted a progressive policy, granting their employees the flexibility to work remotely, even if only part-time.

This trend is particularly evident in the dynamic high-tech industry, but not exclusively, where companies embrace the concept of a hybrid work model. In this dynamic, employees benefit from the best of both worlds, dividing their time between working at home and the traditional office setting. The workplace has evolved into a dynamic virtual ecosystem, fostering collaboration and cooperation on a global scale. This flexibility has boosted productivity, nurtured creativity, and enhanced overall job satisfaction.

In Israel, where innovation and adaptability have always been celebrated, the telecommuting revolution has opened up endless possibilities, such as moving to Israel while working remotely for a US employer. The nation’s tech-savvy workforce now thrives in a realm of creativity, whether it’s the serenity of a home office or the buzz of a vibrant coworking space.

What are Israeli Employees Entitled To?

As an employee in Israel, you are protected by law against exploitation. You’re also entitled to a wide range of employee benefits such as vacation and sick leave, time off during the day, commuting reimbursement, and overtime pay if you’re putting in those extra hours. We’re also talking about severance pay when specific circumstances arise.

Equal Opportunity Employment

As a democracy, Israel believes in equal opportunity employment – so much so that it is even written in law. The Equal Employment Act of 1988 ensures, among other things, that employers will not discriminate against job candidates based on the following:

  • Gender
  • Sexual orientation
  • Pregnancy
  • Parental status
  • Age
  • Race, religion, or nationality
  • Country of origin
  • Physical handicap (unless demanded in the job description)
  • Political affiliation
  • Military reserve service
  • Place of residence

It’s important to highlight that the Israeli labor court system is structured to offer strong protection to employees, prioritizing their rights and interests over those of the employer. Operating independently, the system ensures impartiality and fairness in resolving labor-related disputes. The court consists of seasoned judges with expertise in labor law and the complexities of employee rights and labor regulations. This framework empowers employees to address workplace grievances, including unfair dismissal, wage disputes, and discrimination.

Contract Legalities

It is essential for both you and your employer to sign a contract within 30 days of commencing work. A well-crafted contract should clearly outline important aspects such as work hours, salary, overtime, sick pay, insurance deductions, unemployment compensation, and terms of employment. We recommend reviewing the contract with a native Israeli that you trust if you are not fluent in Hebrew.
A poorly drafted contract can lead to unintended consequences for the employee. While the government has enacted laws to safeguard employee benefits, those protections may not apply if an employee signs a contract that alters the agreed-upon benefit arrangements. It’s crucial to ensure that your contract is comprehensive and adheres to the legal requirements to protect your rights and benefits.

Health Insurance

Health insurance (Bituach Briut) premiums in Israel are determined based on an individual’s income from both work and other sources, as well as their specific status (employee, self-employed, unemployed, student, soldier, etc.). Those without any income are required to pay a minimum monthly health insurance premium of 112 NIS (effective January 1, 2023).

For employed individuals, the employer deducts health insurance premiums from their salary as follows:

  • Up to an income of 7,122 NIS (effective January 1, 2023), the employer deducts 3.1% (effective January 1, 1995)
  • For the remaining portion of the salary, the employer deducts 5% (effective January 1, 2006)

Please note that the premiums and rates may be subject to changes. In order to stay updated with the latest information, check with the relevant authorities.

Sick Days

In Israel, employees typically accumulate 1.5 sick days (Yemei Machala) per month, totaling up to 18 sick days per year unless their contract specifies otherwise. Employees can accumulate a maximum of 5 years of sick days (90 days). If an employee works typically during weekends and holidays, those days will also be part of their sick leave. Additionally, Israeli law allows employees to use their sick days to care for a sick family member. However, unless stated otherwise in the contract, employees cannot receive financial compensation or reimbursement for unused sick days.

Travel Expenses

Employees in need of transportation for their daily commute to work are entitled to travel expense reimbursement (Dmei Nesia) for each workday. The reimbursement is calculated based on either a discounted bus fare or the cost of a regional or national monthly pass.

Employers are required to reimburse employees for travel expenses incurred during their commutes as long as the commute takes place through public transportation, which is subsidized.

  • Employees who use more than one bus to reach their workplace are entitled to additional travel compensation from their employers. This applies if they travel to at least 3 bus stops with the additional bus to reach their workplace.
  • Travel expense reimbursement and the updated maximum amount per working day are determined through periodic updates.
  • Travel expenses are only applicable for days the employee commuted to the workplace.

Retirement Savings Plan

Israel’s retirement savings plans act as a hidden treasure chest, allowing you to set aside some of your earnings and build a comfortable fund for your future retirement. These accounts use compound interest and tax advantages to create a golden path to your retirement days.

Every eligible adult employee in Israel (21 for males, 20 for females) is entitled by Israeli law to receive retirement benefits from their employer. This may include a pension fund, “executive” insurance or a provident fund. It’s important to note that these retirement benefits are separate from any severance pay owed to the employee in case of contract termination unless otherwise specified in the employment contract (such as collective agreements or contracts approved by the Ministry of Labor).

In compliance with these regulations, the employer must contribute at least 6% of the employee’s salary or the average salary (whichever is lower) each month to the employee’s pension insurance. This contribution is considered a part of the employee’s compensation and is reserved for future severance pay. Additionally, the employee is required to contribute 5% of their remaining pay towards the pension insurance.

Typically, pension plans consist of various components, such as savings for future pension payments, life and disability insurance and severance pay.

Within certain limits, employees might have the choice to decide how premiums are allocated and can select from various asset allocation models. However, it’s important to note that not all pension plans provide every option, so it’s crucial to understand the details of your specific plan thoroughly.

Common types of pension plans include:

  • Bituach Menahalim – Encompasses savings, life insurance, disability insurance, and severance pay.
  • Kupat Gemel – Is a tax-free savings plan without insurance.
  • Keren Pensia – Similar to “Bituach Menahalim” but with a joint savings fund.
  • Keren Hishtalmut – A tax-beneficial savings plan funded by the employer and the employee. The funds are closed for 6 years, and withdrawing during this period incurs a tax penalty.

Sexual Harassment

Israel takes the issue of sexual harassment (Hatrada Minit) very seriously, firmly believing that everyone deserves a safe and respectful work environment. Consequently, the government has implemented a zero-tolerance policy for sexual harassment. This policy reflects Israel’s commitment to fostering a workplace culture built on mutual respect, dignity, and equality for everyone.

If someone experiences mental or physical harm due to workplace harassment, they may be entitled to compensation to cover lost wages, medical expenses related to the incident, and disability benefits.

Employment Termination

Employers are legally obligated to follow specific procedures when dismissing a worker, including giving advance notice and providing appropriate compensation (except in certain exceptional cases).

To ensure fairness and transparency, the employer must:

  • Issue a notice summoning the employee to a hearing (shimua), allowing time for the employee to prepare his/her case
  • Outline the reasons for convening the hearing and provide details of any complaints raised against the employee
  • Present their concerns openly and fairly, carefully considering the employee’s responses before making a final decision on termination
  • Assure that the hearing is conducted by an authorized individual, such as the direct manager, human resources department, or a senior staff member. The employee also has the option to be accompanied by a representative or a lawyer
  • Record minutes of the hearing, and see that the decision to terminate employment is based on the arguments presented by both parties
  • Accept that in cases where there are significant flaws in the dismissal decision, a labor court may order the employer to rectify the situation by either reinstating the worker to their position or providing monetary compensation for wrongful termination
  • Provide a written notice specifying the date of termination, if the decision to dismiss the employee is confirmed after the hearing
  • Give at least one month notice in advance to any employee who has at least 1 year of employment
  • Compensate the employee with an additional amount equivalent to their regular salary when failing to provide sufficient advance notice
  • Confront the employee with documentation related to the start and end of the employment relationship upon dismissal. Failure to do so within 14 days of dismissal or within 7 days of the employee’s written demand, may lead to monetary fines.
  • Adhere to the Severance Pay Law and provide an employee who has worked for one employer, or at the same place of work for at least 1 year, severance pay upon termination. The severance pay rate is 1 month’s salary for each year of work.
  • Provide the employee with a higher severance pay rate, if the employment contract specifies it.
  • Calculate severance pay to begin on the day the employer-employee relations end.
  • Adhere to section 9 (a) of the Severance Pay Law, 1963, which stipulates that an employee under a fixed-term contract will be considered terminated if the contract expires and is not renewed.

Income Tax and Tax Brackets

In Israel, the authorities use a system of income tax brackets (Mas Hachnasa) to decide how much you owe based on your income. The less you earn, the lower your bracket, and vice versa. Whether your income is small or large, let’s explore these tax brackets and enhance your understanding of local taxes.

Here’s what you need to know about income tax and tax brackets (effective January 1, 2023):

  • Individuals with a monthly income of up to 6,790 NIS or an annual income of up to 81,480 NIS are taxed at a rate of 10%
  • For those earning 6,791- 9,730 NIS monthly or 81,481-116,760 NIS yearly, the tax rate is 14%
  • Similarly, individuals with monthly income ranging from 9,731-15,620 NIS or annual income ranging from 116,761-187,440 NIS are taxed at a rate of 20%
  • As the income increases, the tax rates progressively rise to 31% for monthly income ranging from 15,621-21,710 NIS, and 35% for an income ranging from 21,711-45,180 NIS
  • The highest tax rate, 47%, applies to those earning 45,181 NIS and above monthly, or 542,161 NIS and above annually

 

If you are an Oleh, alongside the benefit framework in place to support you as an employee, there is a key element in the structured income tax relief program tailored specifically for Olim to facilitate a smoother financial transition during your crucial initial years of settlement.

This relief unfolds through a system of credit points, which you start accumulating from your Aliyah date, spanning over 54 months. These credit points are designed to lighten your tax burden, offering you tiered relief that aligns with your adjustment period to life in Israel.

Here’s a breakdown of how these benefits are allocated over time:

  • First 12 Months After Aliyah to Israel – Receive 1/12 credit points for each month
  • Next 18 Months (Months 13-30) – Receive 1/4 credit points for each month
  • Following 12 Months (Months 31-42) – Receive 1/6 credit points for each month
  • Next 12 Months (Months 43-54) – Receive 1/12 credit points for each month

To apply for this benefit, complete the appropriate sections of Form 101, which is typically filled out at the start of employment and annually at the beginning of each year.

Access more information on daily income or business expenses

Evaluating Professional Certificates

If you’re a physician, dentist, pharmacist, nurse, veterinarian, lawyer, or an accountant aspiring to make Aliyah and are interested in getting licensed in Israel, it’s time to prepare for that licensing exam. The Ministry of Aliyah and Integration and relavent ministries are here to assist you with obtaining an Israeli license in your field of expertise by organizing and funding preparatory courses for eligible new Olim practicing these professions.

Doctors

The Ministry of Health hosts two yearly preparatory courses for medical doctors to obtain licenses from the Ministry of Health. Each course lasts for 6 months and consists of medical terminology and professional studies in the field of medicine. The courses take place in one of the country’s hospitals, and upon completion, participants undergo an internal exam. Those receiving a score of 70 or above are entitled to a 10% bonus added to their governmental exam score. The course is funded by the Ministry of Aliyah and Absorption’s Department of Employment. Eligible participants receive assistance with living expenses and transportation following the Ministry’s regulations. Licensing is the Ministry of Health’s responsibility. More information is available on the Ministry of Health’s website, specifically the Professional Licensing Division. Moreover, details regarding eligibility for additional exam time may be found on the Israeli Medical Association’s website.

Dentists

Dental professionals who are required by the Ministry of Health to pass a government exam to obtain a license, will receive a voucher. The voucher is given to one of the 2 preparatory courses for the licensing exams by the Ministry of Aliyah and Integration – theoretical or practical – according to the candidate’s choice. The preparation courses for dental professionals’ licensing take place at one of the institutions recognized by the Ministry of Health as listed below:

  • The School of Dental Medicine, Tel Aviv University
  • The Faculty of Dental Medicine, Hadassah Ein Kerem in Jerusalem
  • The Institute for Continuing Education, Haifa
  • The College of Health Sciences and Behavior, Ramat Gan

Please note that the vouchers’ value is up to 7,000 NIS and no more than 80% of the value of the course.

Prospective candidates who wish to receive assistance should contact an admission advisor from the Ministry of Aliyah and Integration in their regional area to check their eligibility for the voucher. They can also submit an online request.
For more information, visit the Health Ministry’s website and check out the Department of Professional Licensing under Medical Professions.

Pharmacists

The Ministry of Health offers government licensing exams preparatory courses covering professional and relevant material for pharmacists twice a year. The Ministry of Health administers these tests and is responsible for licensing. Eligible participants receive financial assistance for living and travel expenses in accordance with the Ministry’s guidelines. The courses last for 6 months and include an internal exam. Participants who receive a grade of 70 or above get a bonus grade added to their total score.

For more information, visit the Ministry’s website and check out the Department of Professional Licensing under Medical Professions.

 

Nurses

The Ministry of Health, in cooperation with the Nursing Administration, offers preparatory courses for accredited nurses. The opening of the courses is subject to a minimum number of participants. During the course, participants are entitled to assistance with living expenses and transportation by the regulations set by the Ministry.

Nursing Program stages:

  • Before making Aliyah to Israel, individuals can submit an application for the recognition of professional status in nursing. The request involves providing the required documents to the Nursing Administration, as outlined on their website, available in 6 different languages.
  • Eligible graduates of nursing study programs abroad need to attend the Knowledge Complementation Program to become a registered nurse in Israel. This program focuses on professional matters specific to Israel. Successfully completing the program is a threshold for obtaining eligibility for the governmental registered licensing  nurse exam. This requirement may be completed in several ways, including taking an online course or an exam.

Veterinarians

The Ministry of Agriculture conducts a preparatory course annually for the veterinarians‘ licensing exam. The exam date is set by the Ministry of Agriculture, the entity responsible for licensing. According to the Ministry’s regulations, participants who are eligible for funding also receive assistance with living expenses and transportation. Opening the course is subject to the number of registered participants. It is hosted at the School of Medicine and Veterinary Medicine in the Faculty of Agriculture in Rehovot. It covers medical terminology and professional studies in the field of veterinary medicine.

The course lasts 6 months, and participants take an internal exam upon its completion. Participants who receive a grade of 70 or above receive a bonus of 10 points, added to their total score on the Ministry of Agriculture’s exam.

High-Tech

If you work in the high-tech industry, the Israel Innovation Authority is here to assist. It provides various valuable resources and funding opportunities designed to meet the dynamic needs of innovation, both locally and globally. This includes support for early-stage entrepreneurs, established companies pursuing new products, or manufacturing processes and academic institutions seeking to bring their ideas to the market.

Attorneys

Lawyers and legal practitioners in Israel, including those with foreign licenses, must successfully complete state law exams. The Ministry of Aliyah and Integration provides biannual preparatory courses for these exams, comprising of secondary courses in diverse legal professions. The initial course is fee-exempt, but participants are responsible for the costs of the second course in the study cycle.

The courses are conducted during evening hours and eligible participants are assisted with travel expenses under Ministry regulations. The course is held in the Tel Aviv area and is contingent on the number of participants.
Legal licensing is the responsibility of the Israeli Bar Association. For more information, visit the Bar Association’s website below.

Accountants

New Olim who want to continue working as accountants must pass exams from the Institute of Certified Public Accountants in Israel. These exams cover commercial law, corporate law, income tax, and VAT.
The Ministry of Aliyah and Integration offers preparatory courses for these exams.
The courses are held in Tel Aviv, and their opening is subject to the number of participants.

The courses take place in the evening and the participants receive assistance with transportation according to the Ministry’s regulations.
Certification is under the responsibility of the Institute of Certified Public Accountants.

For more information, visit the website below.

Teachers

Transferring your teaching credentials in Israel can be done in one of the following 4 ways:

  1. Contact your district counselors – Available as your leading resource for any requests or questions. An initial meeting with a district counselor will include a personal interview to gather information while entering it into the Ministry of Education’s database. Additionally, you will receive comprehensive guidance regarding the absorption process for immigrating teachers.
  2. Recognition of foreign degrees – Academic degrees will be acknowledged upon submission of the original documents or certified copies, accompanied by Hebrew translations. An Israeli notary must notarize these translations. If required, free assistance with translation can be obtained through the Ministry of Aliyah and Integration.
  3. A Successful internship year – This may be a teaching license prerequisite. If you have a recognized degree when you arrive in Israel, you may have the opportunity to directly begin teaching in the education system.
  4. Professional advancement –  The issuing of a teaching license is contingent upon meeting the following criteria:
    • Owning a recognized academic degree
    • Owning an acknowledged teaching certificate
    • Successfully completing the various requirements of a year long internship

Evaluating University and College Degrees Obtained Abroad

An Academic Degree Goes Beyond All Borders
If you possess a degree from a foreign academic institution, you might have questions about whether the Council for Higher Education in Israel recognizes the institution where your degree was obtained. However, it’s important to note that foreign academic institutions with branches in Israel are not considered Israeli academic institutions according to the regulations of the Council for Higher Education. The degrees granted by these branches are academic degrees from the parent institution abroad and are not recognized automatically as Israeli academic degrees unless they meet specified criteria.

How and Where to Submit Degrees for Evaluation
For evaluations of foreign diplomas or equivalencies, you should email [email protected], including all required documents in a single PDF file attached to the message.

When you submit a request, the system automatically identifies the necessary documents based on the degree information you provided. The portal also includes helpful information in Hebrew, English, French, Russian, Arabic, and Amharic.

While the new system is the preferred way to submit requests, a temporary postal service option is available if needed. If you must visit the division’s offices in person, there is a designated drop box at the building’s entrance where you can submit your documents.

View the complete list of required documents here

Employment For Different Segments

Employment for Discharged Soldiers

Launching a Career After Military Service
Congratulations on completing your army service in Israel. As you embark on the journey of finding a job, you will realize a wealth of resources and opportunities awaits you as a newly discharged soldier. Your invaluable skills acquired during military service and proficiency in Hebrew will undoubtedly serve as solid assets as you begin exploring the diverse options within the Israeli workforce.

The experiences and training you gained during your service have sharpened the unique abilities sought by employers in various industries. Whether it’s leadership, problem-solving, teamwork, or adaptability, your time in the army has equipped you to excel in the civilian job market. Embrace these strengths and let them lead you throughout your new career path.

In Israel’s dynamic job landscape, you’ll discover various opportunities that match your interests and skills. From start-ups to well-established companies, the country offers a vibrant ecosystem that embraces innovation and welcomes fresh perspectives. As a newly discharged soldier, you will bring a distinctive perspective – a testament to your resilience and determination – qualities highly regarded in the professional world.

Moreover, the Israeli job market provides guidance for transitioning soldiers like yourself. From specialized job fairs to tailored career counseling services, these resources assist you in identifying the right job aligning with your aspirations and background. Among those is ‘Preferred Work‘ (Avoda Muadefet) – several jobs in demand for which discharged soldiers can apply to receive added bonuses on top of their salaries. These jobs can include anything from farming to working at a hotel or petrol station.  Learn more about transitioning soldiers’ rights and benefits here.

Remember, embarking on this new chapter of your life is not just about securing a job but finding a fulfilling career aligned with your passions and values. Take the time to explore different industries and opportunities, engaging with mentors and fellow professionals to gather insights and perspectives. Embrace each part of your journey, recognizing that your commitment and efforts during your military service have laid a strong foundation for success in civilian life.

Employment For Students

Juggling Between Studies and Work?

Are you thinking about managing a job alongside your academic studies? Or have you recently earned your degree and are now searching for your first job in the real world? Balancing work and education can be pretty challenging, but it’s a worthwhile journey to pursue.
For many Israeli students, this is their reality. Often, their parents cannot provide financial support. Therefore, by embracing the art of time management, you can uncover opportunities for personal growth and gain new experiences as you navigate academic and professional domains.
This journey will stretch your limits and open doors to a brighter future. So, if you’re ready, let’s embark on this path together and make the most out of it.

Each academic institution has its own internal job board for students, listing various opportunities.

Employment For Over 50

Age is Merely a Number Since Your Talents Are Timeless

Securing employment beyond the age of 50 can pose a significant challenge. Employers often hesitate when evaluating older candidates, even when they possess all the necessary qualifications. Consequently, mature job seekers may encounter difficulties while trying to integrate into the Israeli job market. However, there is no need to worry. We’re here to guide you on this journey and highlight the substantial worth of your skills and experience. Remember, age is merely a number, and your valuable talents are timeless.
Israel offers excellent resources for people over 50 seeking employment, like “Veterans at Work” (Vatikim B’ Avoda), a program that promotes social change in the job market, ensuring equal opportunities for experianced citizens.

It offers personalized guidance in job placement, connecting individuals with suitable positions that match their education, experience, and personal skill set. Veterans receive free workshops and training sessions to equip them with the necessary skills and knowledge for successful employment. They can access a dedicated job search website and receive support in creating professional resumes highlighting their experience and abilities.

Starting Your Own Business

Becoming an Israeli Entrepreneur

Dreaming of starting your own business in Israel? Get ready for an exhilarating adventure. Departing from the conventional employee path might seem like stepping out of your comfort zone, but it unlocks a realm of thrilling prospects. As an entrepreneur, you’ll have the freedom to create your own future, to craft something one-of-a-kind, and the satisfaction of witnessing your ideas spring to life. So, if you’re prepared to dive in and set off on this exciting journey, fasten your seatbelt for a ride filled with challenges, growth, and, hopefully, the sweet taste of success.

Before taking the leap and becoming an independent entrepreneur (Atzmai) in Israel, it’s crucial to get sound professional guidance and advice from legal and accounting experts as the Israeli business landscape differs from that of the U.S. or Canada, legally and culturally. Therefore, if you’re an American or Canadian looking for a reliable accountant in Israel, check out the AACI’s List of Accountants. Make sure to open a file (Tik) with the Income Tax Authorities (Mas Hachnasa) and the National Insurance Institute (Bituach Leumi).

Note that it is also highly recommended to tap into the wisdom of experienced individuals in your industry and gather as much market information as possible before you kick-start your own business.

MATI - Assistance For Entrepreneurs

Several Israeli organizations provide subsidized services for small businesses, including A-Z guidance on opening and running their ventures. One of the leading entities in this field is MATI.
MATI is here to support and empower you on your exciting entrepreneurial journey. The organization offers various services tailored to individuals starting a new small business. So, if you’re considering such a journey, you’re strongly advised to contact your local MATI office. The services for new Olim (those in Israel for up to 10 years) are free and supported by the Ministry of Aliyah and Integration. Some of the invaluable services provided include:

  • Personalized one-on-one counseling to assist you through the initial early stages of establishing a business, such as creating a well-structured business plan.
  • Courses on establishing, running, and financing a business in Israel. These courses are conducted mainly in Hebrew, while English-language courses are significantly subsidized, making them accessible to all.
    If you need assistance obtaining business loans or are searching for professional mentorship, MATI has you covered. Their mentorship program connects you with seasoned experts with extensive insight into the Israeli market, offering a personalized and thorough mentoring package. New Olim can enjoy up to 20 hours of free business mentoring from a recognized business coach generously sponsored by the Ministry of Aliyah and Integration (Mirsad Haklita).

Employment Rights and Benefits

Taxes in Israel

Income Tax Rights For New Olim
Naturally, when talking about employment, we also have to discuss taxes. If the topic is tax breaks, which you can enjoy as a new Oleh, it might be valuable for you.

In Israel, the taxation system is based on the concept of worldwide income for residents and only on income sourced in Israel for non-residents. This includes various types of income, such as earnings from employment, business activities, and passive income from sources like bank deposits, savings, or rental income from apartments and houses.

Individuals in Israel can file taxes as either a single entity if they’re unmarried or a joint entity if they’re married. The individual tax year aligns with the calendar year. Typically, the initial tax filing deadline is April 30th of the following year. Nevertheless, if an Israeli-certified accountant represents an individual, they might qualify for an extension to submit their tax return.

Coordinating Taxes – Israel Tax Authority
The United States and Israel have established a tax treaty to prevent double taxation. This treaty is especially advantageous for individuals holding dual citizenship, as it ensures they are not required to pay taxes on their Israeli income or U.S. taxes.
Discover more information about tax coordination in Israel here.

Tax Break Packages
There are numerous excellent benefits to making Aliyah. For instance, as an Oleh, you are eligible for special tax incentives unavailable to other Israeli citizens.
You can check your eligibility here.

Tax Subsidies
In Israel, The National Insurance Institute (NII- Bituach Leumi) provides a type of safety net for Olim facing financial challenges in the form of an “income support benefit.” This is a monthly subsidy that begins in the month the application is submitted. You can explore further details on tax subsidies here.

Online Tax Calculator
In Israel, as in many other countries, the amount you receive before and after taxation varies. Check out this link to calculate your salary and determine how much you’ll take home after taxes.

Employment Rights for Olim

Welcome to the Land of Opportunities. Israel warmly welcomes its new Olim and provides an array of work programs and on-the-job training benefits to support succeeding in your career journey. As a newcomer, you’ll be impressed by the wide range of opportunities designed to help you integrate into the Israeli job market. Whether you’re enhancing your skills, exploring a new profession, or advancing in your current career, Israel is here to assist you. So, get ready to embrace the exciting prospects that await you, and let’s embark on this adventure together to turn your dreams into reality.

Voucher Program
The Employment Division of the Ministry of Aliyah and Integration supports new Olim by offering assistance with the cost of professional or vocational training. The Voucher Program aims to enhance the options available to eligible candidates for better job placement, foster vocational training, and ensure qualified individuals’ smooth integration into the job market.
View a list of courses offered by the program here.

Unemployment Benefits
Unemployment benefits serve as a safety net, offering some relief when unexpected challenges arise. Whether you’re amidst a job change or taking a break to explore your interests, these benefits act as a reliable companion, providing assistance as you navigate the ever-changing job market.

As an Oleh, you may qualify for unemployment even before getting a job. That’s because following the initial 6 months, when Aliyah and Sal Klita payments end, you may be eligible for financial assistance from the Ministry of Aliyah and Integration (Misrad Haklita). This is known as Dmei Kiyum or Havtachat Hachnasa, which roughly translates to ‘income support.’

Olim are eligible to receive Dmei Kiyum if they meet the following criteria:

  • They are no longer receiving Sal Klitah payments
  • They are unemployed or earning a minimal monthly income.
  • Olah Hadasha, Ezrachit Olah, or Ktina Chozeret who have given birth within their first year of Aliyah can receive Dmei Kiyum either from their 7th month since Aliyah or from the birth (whichever comes later) until their 12th month post-Aliyah

Please note that Dmei Kiyum is only available during the first year of your Aliyah. If you remain unemployed for 12 months after Aliyah or earn below the minimum wage, you may be eligible for income support (Havtachat Hachnasa) from Bituach Leumi, just like any other eligible Israeli citizen.

It’s important to note that this benefit is not paid retroactively. For instance, if you apply for Dmei Kiyum in the 9th month following Aliyah, you will receive payments only for the 9th through the 12th month.

Payment amounts for the monthly stipend of Dmei Kiyum vary depending on various demographic factors. For more information, check out this Eligibility Calculator.