🇵🇸Complete Palestine hiring guide

Hiring in Palestine through an EOR (2026)

Here's what you need to know before you hire in Palestine: what it really costs an employer, the employment laws that shape the contract, and how an Employer of Record lets you hire compliantly without opening a local entity. Every figure below is sourced and dated.

EGP 1,450Minimum wage / mo
Days, not monthsTime to hire via EOR
Robbin Schuchmann
Written by:
Co-Founder at EOR Overview
Last updated: February 23, 2026

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Palestine's employer cost picture is shaped by what the data record does not itemise as much as what it does. No employer social security breakdown is on file for Palestine, which tells you something practical: cost certainty here depends heavily on getting local legal advice before you set a budget. What the record does confirm is a monthly minimum wage of 1,450 EGP, a corporate tax rate of 20%, and a labour force of roughly 1.4 million people operating in an economy with a GDP per capita of around 2,592 USD. That combination points to a market where nominal wage floors are low but the regulatory environment around termination and notice carries real financial weight.

An Employer of Record (EOR) arrangement in Palestine means a third party employs your worker locally, handles payroll in EGP, and takes on compliance obligations under Palestinian labour law. Given an unemployment rate above 24%, there is talent available, but the statutory protections around severance and notice mean that exits can be costly if you have not planned for them from the start.

Palestine at a glance

The statutory facts that drive a hire in Palestine. Each row shows where the figure comes from and how current it is, so you can trust the number and check it yourself.

Pay & working time

Minimum wageper monthEGP 1,450DatedILOSTAT · 2013

Employer cost & tax

Corporate tax rate20%CurrentPwC Worldwide Tax Summaries · 2026

Termination

Notice period4.3 weeksCurrentWorld Bank Employing Workers / B-READY · 2019
Severance pay23.1 weeksCurrentWorld Bank Employing Workers / B-READY · 2019

Leave & time off

Maternity leave10 weeksCurrentWorld Bank Women, Business and the Law · 2026
Paternity leave0 weeksCurrentWorld Bank Women, Business and the Law · 2026

Labour market

Unemployment rate24.4%DatedWorld Bank Open Data · 2022
GDP per capita$3,171AgingWorld Bank Open Data · 2025
Union density21.3%DatedILOSTAT · 2019

Employment-law essentials

The rules an EOR enforces in your contracts, and the ones most likely to trip you up if you tried to hire in Palestine on your own.

Working time

Standard full-time hours apply; overtime is regulated.

Pay & 13th salary
Minimum wageEGP 1,450
Leave
Maternity leave10 weeks
Paternity leave0 weeks
Termination
Notice period4.3 weeks
Severance pay23.1 weeks

Statutory minimums shown. Collective agreements or contracts can be more generous; an EOR applies whichever is correct for the role.

Things to watch in Palestine

A few specifics in Palestinian labour law deserve attention before you commit to a hire.

  • Severance exposure is significant. The record shows 23.1 weeks of severance, which is a meaningful liability to carry, especially for longer-tenured employees. Build this into your total cost model from day one, not as an afterthought.
  • Notice periods add to exit costs. At 4.3 weeks, the statutory notice period is not extreme, but combined with severance, the total cost of ending a contract can add up quickly. Factor both together when assessing headcount risk.
  • The minimum wage floor is low but not the whole story. The 1,450 EGP monthly minimum is the legal floor. Any offer competitive enough to attract qualified candidates will sit well above it, so use it as a compliance baseline, not a budgeting anchor.
  • Employer cost contributions are not itemised in public records. Because no official breakdown of employer social security contributions is on file, you should confirm current rates with a local legal or EOR partner before finalising your cost model.

EOR vs. opening your own entity in Palestine

Use an EOR when…
You're hiring one to a handful of people in Palestine.
You want someone working in weeks, not months.
You'd rather not own local payroll, tax and compliance.
You're testing the market before committing.
Open your own entity when…
You're scaling to a large local team long-term.
Per-employee EOR fees outweigh the cost of an entity.
You need full control of local employment and IP.

Choosing an EOR for Palestine

Providers with strong Palestine coverage onboard faster and carry less risk. A shortlist to start from:

Compare all EOR providers in Palestine

Common questions about hiring in Palestine

Common questions about hiring in Palestine through an EOR.

Do I need a legal entity to hire someone in Palestine? +
No. An Employer of Record (EOR) already has a legal entity in Palestine and employs the person on your behalf, so you can hire compliantly without opening your own entity. You manage the day-to-day work; the EOR handles the local contract, payroll, taxes and statutory benefits.
What is the minimum wage in Palestine? +
The statutory minimum wage in Palestine is EGP 1,450. Pay below this is not permitted, and an EOR will hold contracts to at least this floor.
How hard is it to terminate an employee in Palestine? +
Ending employment in Palestine generally requires a notice period of around 4.3 weeks and severance of about 23.1 weeks, subject to the reason for termination and the employee's tenure. An EOR runs the offboarding in line with local law to limit your risk.
About the author
Robbin Schuchmann
Co-Founder at EOR Overview
Robbin is the co-founder of EOR Overview, an independent research site for Employer of Record services. He has been in the international hiring space for over a decade.
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