SALARY IN ISRAEL

Israel is not lagging behind many prosperous countries in Western Europe in terms of wages. The state is developing rapidly, the economy is growing, leading international companies are opening representative offices in Israel, and foreign investors are investing huge amounts of money and successfully doing business in Israel. Moreover, the country is rightfully considered one of the most innovative in the world. Especially in the field of information technology and medicine.

Salary in Israel

Over 5,000 startups are launched in Israel every year and thousands of new jobs are created. Unemployment in the country does not exceed 3-5%. With a population of about 9 million people, the number of officially employed persons over 4.2 million. Not for nothing the flow of foreigners wishing to find work in Israel, every year only increases. About what salary in Israel in 2023, the average and minimum rates, income in different sectors of the economy and regions will learn further.

Minimum salary in Israel

According to official information from Israel's National Insurance Institute (Bituach Leumi), the minimum wage in Israel in 2023 is 5,400 shekels per month (about $1,505). Local workers employed 5 days a week should receive a minimum of 245.45 shekels ($68) per day, and 6 days a week 207.67 shekels ($58).

The hourly minimum wage in Israel is 29.03 shekels, equivalent to $8.1 dollars. Note that this is higher than in the United States, where the federal rate is set at $7.25 per hour. In general, over the past 25 years, the minimum wage in Israel has more than doubled. In 1997, Israeli workers received 2,348.88 shekels, and in 2023 they will earn 5,400.

Important. Until 2023, the minimum wage in Israel has not changed for 5 years – since April 1, 2018.

According to the law, employees at least 18 years old who are included in the staffing table on a full-time basis can count on the minimum wage in Israel. Note that in the case of employment of 182 hours per month, the minimum wage is 29.67 shekels per hour, not 29.03 shekels, as with the standard 186 hours.

Average salary in Israel

According to official figures from Israel's Central Bureau of Statistics (CBS), the average salary in Israel in 2023 is 12,183.1 shekels per month ($3,400) before taxes. The figure fluctuates within 100 shekels during the year. Men in Israel earn somewhere between 30-40% more than women. At the same time, the latter are employed fewer hours.

Important. According to Article 1,2 of the Law "On State Insurance" from January 1, 1999, the average salary in Israel from January 1, 2019 should be 10,273 shekels per month ($ 2,865).

Over the past 5 years, the average salary in Israel has increased by 1,900 shekels. The annual growth of the labor force in the country is about 100 thousand people. Among the sectors of the economy on the level of remuneration of labor are leading sphere of information technology, which employs more than 172 thousand specialists with an average income of about 27.4 thousand shekels per month or 7.7 thousand dollars, as well as mining with a salary of about 27.4 thousand shekels (7.6 thousand dollars).

Israel is a very small state, but depending on the city, access to jobs for foreigners, and accordingly, the level of salaries differs. Most often labor migrants seek employment in Tel Aviv, which many call the second Silicon Valley.

Tel Aviv is considered the financial and scientific and technical center of the country, so here you can count on income from 2-3 thousand dollars a month (net) and higher. Even in professions that do not require special qualifications. In addition, higher average salaries in the capital of Israel – Jerusalem and major cities – Haifa and Ashdod.

WAGES IN ISRAEL BY SECTOR OF ECONOMY

Sector of economy Shekels per month Dollars per month
Information and communication 27,429 7,650
Mining and quarrying 27,400 7,640
Financial and insurance activity 21,456 5,985
Supply of electricity, gas, steam and air conditioning 20,016 5,580
Professional, scientific and technical activity 16,853 4,700
Public administration and defense 16,631 4,640
Transportation and storage 12,626 3,520
Construction 11,621 3,240
Wholesale and retail trade 10,066 2,805
Education 9,044 2,520
Health care and social work 8,920 2,490
Agriculture, forestry and fishing 8,395 2,340
Administrative and support services 6,997 1,950
Arts, entertainment and recreation 6,893 1,920
Accommodation and food services 5,709 1,590

Note. Information on average salaries in Israel by economic sector is based on official data from the Israeli Central Bureau of Statistics.

In conclusion, the income tax rate in Israel varies from 10 to 50%. At the maximum rate of 50% is taxed annual income over 698,280 shekels, and at the minimum rate of 10% annual income up to 81,480 shekels. A large number of foreigners from different countries live and work permanently in Israel. Despite the complicated procedure for registration of Israeli work visa, the owners of professions that are scarce for the local economy can count on decent pay.

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