Minimum wage in Israel 2026: ILS 6,443.85 a month

Monthly, daily and hourly versions of the rate

Israel sets the minimum as a monthly amount and publishes four equivalents, so the right figure depends on how the employee is paid. Monthly staff get at least ILS 6,443.85. Hourly staff get ILS 35.40 if the full-time month is 182 hours or ILS 34.64 if it is 186 hours. Daily-paid staff get ILS 297.40 on a five-day week or ILS 257.75 on six days. The table after this section lists all four with their effective date.

The Bituach Leumi table covers employees aged 18 and over. Youth rates were not on the page we read, so we do not quote them.

Other minimum wage rates in Israel

Israel minimum wage history

Increases since 2022

The minimum stood at ILS 5,300 from April 2018 and was still at that level in 2022. It then rose every April: ILS 5,571.75 in 2023, ILS 5,880.02 in 2024, ILS 6,247.67 in 2025 and ILS 6,443.85 in 2026. The 2026 step was 3.14%, and the rate is 21.58% higher than in 2022. The update for April 2027 had not been published when we checked on October 18, 2026.

What a minimum-wage employee costs an employer

Three contributions sit on top of the wage. National Insurance is charged at a reduced employer rate of 4.51% on pay up to ILS 7,703 a month, which covers the whole minimum wage, rising to 7.6% above that. Mandatory pension under the extension order adds 6.5% from the employer, and the severance component adds 6%; many employers pay 8.33% under Section 14 instead, which settles severance in advance. The pension rates come from secondary sources, a law firm and a payroll provider, so treat them as close but confirm with your payroll provider.

After one year of service, recreation pay (dmei havraa) is also due. According to the same secondary sources, it is ILS 451.50 a day in the private sector for 2026, for 5 days in the first year, rising to 10 with tenure. Five days is ILS 2,257.50. Compare the totals with other countries in the employer cost index.

Hiring in Israel through an EOR

Israeli payroll has more moving parts than the headline rate suggests: pension enrollment, Section 14 severance, recreation pay and the National Insurance bands. An employer of record handles them as the legal employer. Published list prices run from $99 (Native Teams, whose help center says EUR 99) to $699 (Oyster) per employee per month (EOR prices compared); Deel lists $599 (checked October 16 and 18, 2026).

On exit, severance is one month's salary per year of service under the Severance Pay Law, usually prefunded through the pension severance component, according to the law firm and payroll provider we used (secondary; we did not read the law itself). Our Israel EOR guide has the line-by-line cost at a USD 40,000 salary, our EOR rankings compare providers, and Israeli average pay sets the minimum in context. Nearby rates: Jordan's minimum wage and Turkey's minimum wage.