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Discover global hiring strategies from leading recruitment platforms
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Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.
Explore Multiplier EOR
Your guide to the employment landscape, working customs and local labor laws in State of Palestine.
Capital
Jerusalem (limited recognition), Ramallah
Currency
Israeli Shekel, Jordanian dinar (JOD), and United States Dollars (USD)
Languages
Arabic
GDP per Capita
$3,095.50
Employer Tax
No Contribution
Payroll Frequency
Monthly
Located in the Middle East, Palestine, officially the State of Palestine, has a population of 5,375,155. It has a presidential form of government. It is a member of the Organization of Islamic Cooperation, the Arab League, and the G77.
Major economic hubs:
Jerusalem, Gaza, and West Bank
Skills in demand:
343,600
palexcel.ps, alliance.ps
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
The below table mention some of the common jobs in the State of Palestine with average monthly salary:
| Job Title | Average Monthly Salary (ILS ) | Average Monthly Salary (USD) |
| Financial Manager | 11,487.38 | 3340 |
| Information Technology Manager | 9,251.81 | 2690 |
| Business Development Manager | 8,873.48 | 2580 |
| Financial Analyst | 7,360.18 | 2140 |
| Business Analyst | 7,119.42 | 2,070 |
| Project Manager | 6,225.20 | 1,810 |
To hire employees in the State of Palestine, employers need to follow the country’s employment law.
The employment contract should be written in Arabic and include the terms and conditions, wage, type and duration of work, benefits, termination conditions, and all other terms and conditions agreed between the parties.
The probation period can be a maximum of three months. It can be up to three months and cannot be extended further with the same employer.
| Date | Name | Type |
| 1 Jan | New Year’s Day | Public Holidays |
| 18 Feb | The Prophet’s Ascension | Public Holidays |
| 20 Apr | Eid al-Fitr Holiday | Public Holidays |
| 21 Apr | Eid al-Fitr | Public Holidays |
| 22 Apr | Eid al-Fitr Holiday | Public Holidays |
| 1 May | Labour Day | Public Holidays |
| 28 Jun | Eid al-Adha | Public Holidays |
| 29 Jun | Eid al-Adha Holiday | Public Holidays |
| 30 Jun | Eid al-Adha Holiday | Public Holidays |
| 19 Jul | Islamic New Year | Public Holidays |
| 27 Sep | Prophet Muhammad’s Birthday | Public Holidays |
| 15 Nov | Independence Day | Public Holidays |
| 25 Dec | Christmas Day | Public Holidays |
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 14 days per year for first 5 years of employment; 21 days thereafter | Yes |
| Sick Leave | First 14 days with full salary and next 14 days with half salary per year | Yes |
| Maternity leave | 70 days | Yes |
Leave Compliance
Payroll cycle
The payroll cycle in Palestine is Monthly.
Minimum wage
The minimum wage in the State of Palestine is 1,880 ILS per month.
Overtime pay
In the State of Palestine, actual working hours are forty-five hours per week. In case of overtime, the extra working hours should not exceed twelve hours a week and workers shall be paid 1.5 times for each hour worked.
There is no social security contribution in the state of Palestine.
There is no employee payroll tax in the State of Palestine.
| Income range (in Israeli shekels (ILS)) | Rate |
| 1 to 75,000 | 5% |
| 75,001 to150,000 | 10% |
| 150,001 and above | 15% |
The VAT rate in Palestine is 16%.
There is no specific law to mandate the 13th-month pay, however it can be provided based on collective agreement.
Both employer and employee can terminate the contract by giving notice. Employers can terminate the contract without giving any notice if workers commits following infractions:
The notice period in the State of Palestine is as follows:
| Length of continuous employment | Notice period |
| For workers paid on Monthly basis | 1 Month |
| For workers paid on daily or weekly basis | 1 week |
The worker who completes one year of service is entitled to one month end of service bonus. It is calculated based on the last salary an employee earned.
Individuals of all nationalities need to have a work visa to work in palestine. Work visas are not transferable from one employer to another. So when an employee changes jobs, he needs to apply for a new work permit.
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