Corporate & Business

What are the mandatory pension contributions in Israel?

Israeli law requires pension contributions for all employees from their first day of employment (following an initial qualifying period). The combined contribution rate is approximately 18.5% of salary — split between employer and employee contributions. Employers currently contribute approximately 6.5% toward pension and an additional amount toward disability insurance, while employees contribute around 6% from their gross salary. These figures are set by collective agreements and may be updated periodically.

From the full guide: Employment Law in Israel for Foreign Companies and Expats: A Practical Guide


Related Questions

Related Guides

Need legal help with this topic?
Get a Free Consultation with Adv. Eli ShimonyPrepared under the direction of Adv. Eli Shimony, Eli Shimony Law Office · Editorial policy

← Browse all Q&A