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UPDATED JUL 7, 2026💡 What to expect for employee benefits when you hire in Israel through Toku. Israeli law mandates pension, education fund, and severance fund contributions - all administered by Toku - plus optional employer-paid international health insurance.
At a Glance
| Item | Detail |
|---|---|
| Pension fund | 6% employee / 6.5% employer |
| Education fund (Keren Hishtalmut) | 2.5% employee / 7.5% employer (up to ₪15,712/month salary cap) |
| Severance fund | 8.33% employer |
| Section 14 | Applies |
| Supplemental health | Remote Health by SafetyWing - 100% employer-paid, opt-in |
Statutory Benefits
Mandatory contributions under Israeli labor law, administered through Toku's pension agent:
| Fund | Employee | Employer |
|---|---|---|
| Pension fund | 6% | 6.5% |
| Education fund (Keren Hishtalmut) | 2.5% | 7.5% |
| Severance fund | — | 8.33% |
Key details: Section 14 applies (severance contributions replace end-of-service severance liability). Education fund contributions apply up to the tax-recognized salary ceiling, currently ₪15,712/month. Employees may choose their own pension fund or use the company-nominated agent; under Managers' Insurance, the maximum combined employer pension + disability contribution is 7.5%. Together, employer-side contributions add roughly 22% on top of gross salary — plan for this in your cost of employment.
Supplemental Health Through Toku
Israeli employees can opt into Remote Health by SafetyWing, international private medical insurance with a $1,500,000 annual maximum, usable in Israel and worldwide with no referrals. Toku sponsors 100% of the employee premium (billed to the client):
| Age | Monthly premium (USD) |
|---|---|
| 0 - 17 | $102 |
| 18 - 39 | $160 |
| 40 - 49 | $237 |
| 50 - 59 | $364 |
| 60 - 74 | $662 |
Highlights: pre-existing and chronic conditions covered from day one; inpatient care at 100% in a private room; maternity up to $4,500 per delivery (10-month wait); preventive dental up to $1,500/year; optical up to $500/year; emergency treatment abroad up to $50,000/year; evacuation up to $100,000; EAP included.
Enrollment
Pension enrollment happens during onboarding as required by law - if an employee doesn't submit fund paperwork, a default fund is opened to keep them compliant. Health insurance is opt-in via the Remote Health enrollment form; SafetyWing contacts the employee within 5 business days, and coverage starts on the 1st or 15th of the month.
Last verified July 2026. This guide is for general information and doesn't constitute legal or tax advice. Questions? Contact [email protected].