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The cost of social benefits a company is required to contribute differs depending on the industry sector. Below we present the standard benefits common to two main industry sectors.
High-Tech Sector
(as a % of the gross salary)
|
Provident Fund* |
5.00% |
|
Severance Pay |
8.33% |
|
Disability |
2.24% |
|
Social Insurance* |
5.68% |
|
Advanced Training Fund** |
7.50% |
|
Total |
28.75% |
* The employee contributes his share as well to these two funds.
** A social benefit that has become the norm in Israel for educated/skilled employees, which functions as a savings program.
Additional Benefits required by Law:
|
Transportation (excludes company car holders) |
$4.70 per day (~$103 per month) |
|
Convalescence Pay |
$350-$700 per annum |
|
Vacation |
12-24 days per annum according to seniority |
|
Sick Leave |
18 days per annum. Cumulative right of 90 days. |
Possible additional benefits:
|
Company Car (for managers and senior employees) |
~ $1,000 per month |
|
Cellular Phone service |
$40- $60 per month |
|
Options/Bonuses |
According to company policy |
To all this should be added the following two social benefits:
a. Holiday gifts (Jewish New Year and Passover)
b. Meals provided by the company.
Disclaimer: Invest in Israel offers this information only as an example of common practice in industry. Legal counsel should be consulted to establish the exact level of social benefits to be offered.
Medium Technology Industry Sector
(as a % of the gross salary)
Remark: Unlike the High Tech sector most other industry sectors abide by the collective industry agreements prevalent in Israel to which the Manufactures Association of Israel is party.
Main Package:
|
Provident Fund* |
6.00% |
|
Severance Pay |
8.33% |
|
Social Insurance* |
5.68% |
|
Total |
20.01% |
* The employee also contributes his share to these two funds.
** A social benefit that has become the norm in Israel for educated/skilled employees. Some industry sectors/companies might apply this benefit, others not, which functions as a savings program.
Benefits required by Law:
|
Convalescence Pay |
$350 - $1,200 per annum |
|
Transportation (excludes company car holders) |
$4.70 per day (~$103 per month) |
|
Vacation |
12-24 days per annum according to seniority |
|
Sick Leave |
18 days per annum. Cumulative right of 90 days. |
Possible additional benefits:
|
Company Car (for managers) |
~ $1,000 per month |
|
Disability |
2.24 % |
|
Advanced Training Fund** |
7.50 % |
To all this should be added the following two social benefits:
a. Holiday gifts (Jewish New Year and Passover)
b. Meals to be provided by the company.
Disclaimer: Invest in Israel offers this information only as an example of common practice in industry. Legal counsel should be consulted to establish the exact level of social benefits to be offered.
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