Israel Compensation & Benefits
Providing competitive compensation and benefits is the key to finding the right employees and staying compliant. Meeting or exceeding Israel’s compensation laws will help you show employees you care and make sure you meet the statutory requirements. Plus, providing more benefits than simply the minimum requirements will help persuade prospective job candidates to choose your company over another.
However, it’s hard to focus on benefits and compensation when you’re also trying to hire employees, add them to your payroll, and run all your company’s locations. That’s where Globalization Partners can help with Israel compensation and benefits management. We’ll pay your employees using our compliant payroll and add them to our existing Israel benefits management plan.
Israel Compensation Laws
One of the most important Israel compensation laws is the country’s minimum wage. In December 2014, Israel announced that it would gradually increase its minimum wage over the next two years up to NIS 5,000 on January 2017. However, not all Israeli employees are under the minimum wage, so you should check to see if your employees are covered before drafting an employment contract.
Guaranteed Benefits for All Employees
Every employee must receive the statutory minimum of benefits as part of your Israel benefits management plan. The country celebrates eight public holidays, during which employees should get time off. Paid annual leave depends on how long the employee has worked for your company, but the minimum period is anywhere between 10 and 23 days.
Another guaranteed benefit is maternity leave. Pregnant women should get seven weeks of maternity leave at full pay as long as they worked the previous six to 10 months. Women who worked more than 10 months get 14 weeks of paid maternity leave. Men get eight days of paid paternity leave, as well as three paid vacation days and five sick days paid by the employer.
Best Ways to Disperse Benefits
When you disperse benefits, you should also take the time to add supplemental options to your Israel benefits management plan. Additional benefits will increase retention rates and help you find the best talent. Many companies contribute to “managers’ insurance” policies or pension funds, while other employers give out disability insurance.
Although it’s not required by law, employees expect to get compensated for all travel expenses. You may choose to provide a company car or pay a separate fee for the use and maintenance of the car. Travel expenses can be included in the employee’s salary — it’s best to get written consent so that both parties understand each other.
Restrictions for Both Compensation and Benefits
You can’t give out compensation and benefits until you incorporate in Israel. Unfortunately, it can take a significant amount of time to establish a subsidiary in a foreign country. Globalization Partners will help you start working in this country in as little as a day through Israel compensation and benefits outsourcing. We’ll make sure your employees make the right amount and get the benefits they deserve.
Contact Globalization Partners Now
Globalization Partners will help you make the most of your expansion to Israel. Contact us today to learn more about Israel benefits and compensation outsourcing.