Build a Team in Israel

For companies building teams of 10 or more across business, technical, and operational functions — not for individual hires.
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Why companies build teams in Israel

Lundi supports compliant employment in Israel for specialist senior hires — Tel Aviv concentrates the senior tech, cybersecurity, and AI talent (Wiz, Monday.com, Checkpoint heritage). One of the world's deepest deep-tech ecosystems at premium cost. For cost-driven scaling, Poland or Romania.

Languages

Hebrew

Payroll Frequency

Monthly

Currency

ILS

Capital City

Jerusalem

Employer Tax Rate

28.28%

Israel has built one of the world's deepest deep-tech, cybersecurity, and AI talent ecosystems — Tel Aviv concentrates senior engineering, AI/ML, and cybersecurity talent (Wiz, Monday.com, Checkpoint, Palo Alto Networks-Israel, plus extensive multinational R&D presence). Jerusalem adds defense-tech and government-adjacent operations; Haifa concentrates technical engineering. Israeli shekel (ILS) is the local currency. Employer social contributions run ~5–7.6% above gross (relatively low). Premium senior engineering compensation — frequently the highest in Europe/MENA for specific deep-tech specializations. Strong fit for specialist senior cybersecurity, AI, and deep-tech hires. For cost-driven scaling Lundi typically recommends Poland or Romania.

Cost of Employment in Israel

What it costs to employ someone through Lundi.

Lundi's cost is the all-in cost of the employee — gross salary plus statutory employer contributions plus customary benefits — and a Lundi management fee on top. The management fee depends on team size and scope: smaller teams pay a higher per-head rate, teams of 20+ get materially better unit economics, and Build–Operate–Transfer engagements are structured separately.

The alternative paths look like: setting up your own local entity (meaningful months of legal and accounting work, plus ongoing in-country HR, payroll, and compliance infrastructure), engaging a local recruitment agency on contingency (typically a percentage of first-year compensation, paid once, with no ongoing employment relationship), or hiring as a contractor (lower upfront cost, real misclassification risk in most jurisdictions). Lundi is faster than entity setup, structurally different from contingency recruitment, and lower-risk than contractor arrangements.

Talk to us for specific pricing.

Talk to us about Israel

Employer Tax Costs in Israel

In Israel, VAT is required on top of the total cost of the team member at a rate of 17%, unless an employer meets the following criteria: - The job description states there will be no work with Israeli clients, entities, companies. - The employer agrees that the team member has no business in Israel and/or with Israeli companies or clients. Employers are also required to pay 28.28% in social contributions which includes severance pay, social security and health insurance, pension fund, and disability insurance.

Employee Income Taxes in Israel

Employees in Israel pay between 10% and 59% in taxes depending on their income bracket. Employees also pay 21.5% in social security contributions.

Employee Probation in Israel

The probationary period in Israel is usually between one and 12 months, depending on the employment contract.

Employee Overtime in Israel

Employees in Israel work 42 hours per week from Sunday to Thursday. The first two hours of overtime are paid at a rate of 125% of the regular pay, and 150% after that. Overtime work and pay rates are usually outlined in the employment contract.

Employee Notice in Israel

The length of a notice period in Israel depends on the length of the employee's service, with a maximum of 30 days. An employer can choose to make a payment to the employee in lieu of having them serve out the notice period.

Termination in Israel

In Israel, an employer can only terminate an employee after a hearing, following which they must provide the employee with written notice. Severance pay can depend on whether the employer has been contributing to the severance pay fund and the number of years of service. This pay can be equal to one month's salary for each year of service.However, employers that make monthly contributions equivalent to 8.33% of the employee’s monthly salary towards a severance pay fund do not need to pay severance separately. The accrued amount from this fund is released to the employee upon termination.

How Lundi works in Israel

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building teams of 10 or more across business, technical, and operational functions . Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.