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Global hiring costs

Employer cost of hiring in Israel

Quick answer: The OECD average wage in Israel for 2025 is 209,735 ILS (about $59,178 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 6.3%, or 13,151 ILS. Israel ranks #32 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%).

Prefilled with the Israel average wage. Enter any salary in ILS.

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Where do these numbers come from?

Checked Oct 23, 2026. OECD Taxing Wages 2026 puts Germany’s 2025 average wage at €66,700 with employer social security at 20.86% of gross. €66,700 + 20.86% (€13,917) = €80,617, the total this calculator shows. Our automated tests repeat this comparison against OECD’s published net pay at 100% and 167% of the average wage for all 38 OECD countries.

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Employer cost in Israel at different salaries

Salary levelGross salaryEmployer SSCMandatory non-tax paymentsTotal employer cost
67% of AW140,523 ILS5.6%12.5%165,979 ILS
100% of AW209,735 ILS6.3%9.5%242,861 ILS
167% of AW350,258 ILS6.8%5.7%394,064 ILS

Worked example

The OECD average wage in Israel for 2025 is 209,735 ILS (about $59,178 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 6.3%, or 13,151 ILS. On top of social security, employers must also make 9.5% in mandatory non-tax payments (mandatory pension contributions), which the OECD reports separately from taxes but which are a real cost of employment. That brings the statutory total to 242,861 ILS a year (20,238 ILS a month), or 117 ILS per hour at 2,080 hours. In 2024 the rate at the average wage was 5.8%, so it rose. The rate rises to 6.8% at 167% of the average wage.

Israel ranks #32 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%).

Sources: OECD Taxing Wages 2026, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.

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Frequently asked questions

How much does an employee cost in Israel?

At the OECD average wage of 209,735 ILS, about 242,861 ILS a year including 6.3% employer social security (2025).

What are employer social security contributions in Israel?

About 6.3% of gross pay at the average wage, 5.6% at 67% and 6.8% at 167% of it (OECD model).