Guide to employment, payroll and benefits in

Palestine, State of

Rivermate offers complete payroll, benefits and compliance services for

Palestine, State of

01. Overview

Last updated: 

August 19, 2021

Israeli New Shekel
Ease of doing business
GDP growth

02. Grow your team in

Palestine, State of

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Palestine, State of

, particularly if you don't have established local relationships. You can hire employees in

Palestine, State of

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Palestine, officially known as the State of Palestine by the UN and other organizations, is a de jure sovereign state in Western Asia that claims the West Bank and Gaza Strip, with Jerusalem as its capital, despite the fact that its administrative center is currently in Ramallah. Since 1948, Egypt and Jordan have occupied the entire territory claimed by the State of Palestine, followed by Israel after the 1967 Six-Day War. As of February 2020, Palestine had a population of 5,051,953, ranking 121st in the world. In 1947, the United Nations adopted a Partition Plan for Mandatory Palestine, proposing the establishment of separate Arab and Jewish states as well as an internationalized Jerusalem. The Jews approved of the partition scheme, but the Arabs did not. On the day after the creation of a Jewish state in Eretz Israel, later known as the State of Israel, on 14 May 1948, neighboring Arab armies invaded and battled Israeli forces in the former British mandate. The Arab League later formed the All-Palestine Government on September 22, 1948, to rule the Egyptian-controlled enclave of Gaza. Except for Transjordan, it was quickly remembered by all Arab League members. Despite the fact that the Government's claimed authority extended to the entire former Mandatory Palestine, its actual jurisdiction was limited to the Gaza Strip. During the Six-Day War in June 1967, Israel took the Gaza Strip and the Sinai Peninsula from Egypt, the West Bank from Jordan, and the Golan Heights from Syria. Yasser Arafat, the Chairman of the Palestine Liberation Organization, declared the State of Palestine on November 15, 1988 in Algiers. The Palestinian National Authority was established a year after the Oslo Accords were signed in 1993 to rule areas A and B in the West Bank, which comprise 165 "islands," as well as the Gaza Strip. In 2007, two years after Israel's withdrawal from Gaza, Hamas took control of the territory. The State of Palestine has been a non-member observer state in the United Nations since 2012. It is recognised by 138 UN members. Palestine belongs to the Arab League, the Organization of Islamic Cooperation, the Group of 77, the International Olympic Committee, among other international organizations.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

Notice period

Severance pay

Probation period

07. Working hours



08. Minimum wage


The monthly minimum wage in Palestine is set at ₪1,450.

09. Employee benefits


Mandatory benefits postulated by law include a probationary period, pay on annual leaves, public holidays, sick leaves, maternity leave, paternity leave, and overtime pay. Statutory benefits also include social security benefits

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Palestine, State of

to hire a team takes time, money, and effort. The labor law in

Palestine, State of

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Palestine, State of

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Palestine, State of

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Palestine, State of

via our Employer of Record / PEO solution.

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