Employment Guide

Employing in Palestine

Welcome to our guide on employing in Palestine. Discover how to navigate local labor laws, set up effective payroll systems, and create a thriving workplace that connects exceptional Palestinian talent with leading global companies. Join us in building a future where talent knows no boundaries. Don't worry we take care of all of this for you!

Facts and Stats​

The State of Palestine (Dawlat Filasṭīn) is a de jure sovereign state in the Middle East that’s known for its historical significance, rich cultural heritage, and pivotal role in the Arab world. For more statistical information please visit https://pcbs.gov.ps

Language

Arabic

Population Size

5,613,463

Proclaimed Capital

East Jerusalem

Currency

Israeli Shekel (ILS)

Cost of Living Index

$$ (2024)

VAT - Standard Rate

16%

GDP - Real Growth Rate

3,9% (2022)

Payroll Frequency

Monthly

Ease of Doing Business

Medium

Personal Income Tax Rates

Employees who are working in Palestine are subject to tax on their wages, salaries, and benefits according to the following yearly brackets and rates:

5%

From ILS 1 to ILS 75,000

10%

From ILS 75,001 to ILS 150,000

15%

From ILS 150,001 and above

Types of Leave

Explore the various types of leave available to employees in Palestine, ensuring a balanced approach to work-life commitments.

Paid time off

After spending an entire year working for an employer, workers are entitled to 30 days of paid leave annually.

Sick leave

Employees accrue 12 hours of sick leave for every 26 shifts worked (a shift is equal to 12 hours), equivalent to roughly one day of sick leave earned per month or 13 days of sick leave annually.

Public holidays

There are 19 paid public holidays every year. Employees are entitled to double pay if they’re required to work on a public holiday.

Maternity leave

Female employees who have worked for an institution for more than 180 days are entitled to 14 weeks of fully paid maternity leave, starting four weeks before delivery.

Paternity/Parental leave

Fathers are entitled to three days of paid paternity leave, provided they tender notice at least one week before their leave is due to kick in.

Other leave

Adoptive mothers are entitled to 28 days of leave, from the day their child is handed over to their legal custody.