ISRAEL: Compensation of Employees- Foreign Employees in Israel (Including Palestinian Authority Residents)


Compensation of employees- foreign employees in Israel is divided into 2 types- Palestinian workers and others foreign workers. Each component is calculated in a different method.

Scope, Methodology, Compilation Practices, and Data Sources

The estimation for compensation of employees of the Palestinian workers population is based on report of the Palestinian employees from the PCBS (Palestinian Central Bureau of Statistics) and estimations for illegal workers. The source for the wages and salaries is Population and immigration authority, administrative data.

The data sources for the number of others foreign workers’:

  1. Illegal workers- information about entries of residents from developing countries which staying above a certain time in Israel. The data is derived from Population and immigration authority and the Demographic department in the CBS.
  2. Work permits- administrative files (border control data, Population and immigration authority).
  3. Unregistered foreign workers data based on Population and Immigration Authority.

The estimation for compensation of employees of others foreign workers is based on average monthly wages per employee job of workers from abroad which reported to the National Insurance Institute of Israel by their employers.

The estimation is calculated every quarter in Balance of Payments sector. The data included in national accounts under the gross national income.

Current Challenges and Conclusions

According to the guidelines, workers who are in Israel for up to one year must be included, but currently data are also included foreign workers who stay for over a year. This is being developed and will be updated in the future.