Core Facts
- Population: 8.3M
- GDP: USD 299 billion
- GDP per head: USD 33,118
- Workforce: 3.7M
- Unemployment (2017): 4.4%
- Average high skilled monthly wages (2017): USD 2,825
Regulatory
- Government debt: 62% of GDP
- Personal income tax: 50%
- Corporation tax: 25%
- World corruption ranking 2016: 28th Transparency International
- Ease of doing business ranking: 52nd Business Freedom Index
- Labour law: ILO Conventions ratified
- Data protection: Recognised by EU as having adequate protection
Although the Israeli labour market may not be as regulated as many other countries around the world and in particular in Europe, there are nevertheless different laws, practices and customs in Israel which the Global business will need to understand. An example would be the popular concept of a Manager’s Insurance Fund. This allows both employer and employee to pay into the Fund over time. The Fund is then paid out as severance compensation to the employee on termination. This effectively reduces the employer’s liability for payments due on a termination. Labour law is essentially governed by legislation and regulations. In addition, the law of custom and practice (the continued conduct of an employer and employee over a period of time) is well recognised under Israeli labour law.