Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
ILS ₪ (Israeli Shekel) / JOD in West Bank
Employer contributions
~17.5% employer NII
Minimum wage
ILS 1,880/month (West Bank minimum)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Ramallah (admin) / Gaza
Timezone
EET (GMT+2)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~ILS 7,050 total
/month
For a gross salary of
ILS 6,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~17.5% employer NII
Mandatory extras
Annual Bonus
Monthly admin
Monthly payroll - NII contributions - MoF withholding - annual March return
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
+
A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~ILS 7,050 total
Example gross salary
ILS 6,000 gross/month
~ILS 4,650 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~ILS 1,050 employer NII
Employer contributions on that salary
Employer contributions
~17.5% employer NII
Employee contributions
~5% employee NII
Total cost above gross
~17.5% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~ILS 3,000
Per month
Ramallah
ILS 4,000 - 10,000
~30%
Nablus
ILS 3,000 - 7,000
~10%
Monthly gross. National average salary per year:
~ILS 36,000
Minimum wage
ILS 1,880/month (West Bank minimum)
Paid:
Monthly
Extra pay
Annual Bonus
Discretionary
December
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
5% flat income tax on employment income
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by last day
Social security payments
March 31
Income tax
On request
Employee tax certificate
Salary certificate
March 31
Annual return
Annual income tax return
Late payment penalties
Late NII: 1% monthly; late tax: variable
Who collects what
Palestinian Ministry of Finance
Income tax
Palestinian NII
Social insurance
Ministry of Labour (Palestinian Authority)
Labor law (West Bank)
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
14 days (under 3 yrs) / 21 days (3-5 yrs) / 30 days (5+ yrs)
Public holidays
~15 public holidays (varies by religion and territory)
Sick leave
Sick Leave
Full pay first 2 weeks; NII after (West Bank only)
Maternity leave
10 weeks (70 days) maternity
Full pay from employer
The contracts you can use, and what ending an employment relationship costs.
Permanent
Aqd Amal Gher Mohadad (Permanent)
Fixed term
Aqd Amal Mohadad (Fixed Term)
Independent contractor
Aqd Moqawala
Collective agreements
No general CBA
Ending employment
End-of-Service Indemnity
How it is calculated
1 month/year of service
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
West Bank vs Gaza Jurisdiction Split
Risk Level: HIGH
Palestinian labour law technically applies in both territories but Gaza operates under separate Hamas authority with different enforcement. International employers almost exclusively operate in the West Bank.
Currency and Cross-Border Payment Complexity
Risk Level: HIGH
Palestinian workers are paid in Israeli Shekels with Palestinian tax and social security obligations. Banking restrictions and movement limitations complicate payroll processing.
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$49
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Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.