Business
Israel — Business: Hiring Employees
From 1 April 2026 the Israeli minimum wage is NIS 6,443.85 a month, and employers must open a deductions file, withhold tax and National Insurance and file annual Form 126.
VerifiedGovernment / official sourceNational Insurance Institute / Israel Tax Authority — employer obligations and minimum wage 2026Last reviewed: 2026-10-23
Key facts
- The minimum wage effective 1 April 2026 is NIS 6,443.85 a month, NIS 34.64 an hour for a 186-hour month.
- Employers must open a deductions file with the Tax Authority and withhold income tax and National Insurance from pay.
- The employer files an annual Form 126 report of each employee salary and deductions; the National Insurance Institute assesses the employer file if it is not filed.
- A 2026 National Insurance notice sets filing windows, including 18 July 2026 for January to June.
- Employers in the Tax Authority portal can test reports 126 and 856 with a logic-test simulator before submission.
Steps
- Step 1: Determine Eligibility for Employment — Check if the candidate meets the eligibility requirements for employment in Israel, including valid work permits and visa status.
- Step 2: Recruit and Hire Employees — Recruit and hire employees in accordance with Israeli labor laws and regulations.
- Step 3: Register with the Ministry of Economy and Industry — Register the business with the Ministry of Economy and Industry to obtain necessary licenses and permits.