Intel Israel raises salaries by 10% in major pay restructure
Chipmaker integrates local bonus into base pay, promising stability and higher benefits for 9,300 employees.
Intel announced on Tuesday a structural change to its compensation and salary model for all employees in Israel, introducing a permanent increase in base pay. According to an internal email sent to employees, base salaries will rise by approximately 8.2%, resulting in an effective 10% increase in fixed monthly pay.
Until now, Intel’s compensation package for Israeli employees consisted of four components: base salary, a quarterly profit bonus (QPB), an annual performance bonus (APB), linked to both company-wide and individual results, and a special “Israeli component.”
Under the new structure, Intel will eliminate the separate Israeli component, previously a highly variable bonus that fluctuated based on performance, and integrate it into employees’ base salaries. The change aligns Intel Israel’s pay structure with that used at all Intel sites worldwide.
Other elements of the compensation plan remain unchanged: employees will continue to receive the quarterly and annual bonuses as usual, along with stock-based rewards through the company’s standard compensation processes. These will be calculated after the base salary update takes effect.
Intel said the change is designed to provide greater certainty and stability for its Israeli workforce. Instead of receiving a fluctuating local bonus that sometimes dropped sharply in weaker quarters, employees will now enjoy a consistent monthly increase. In past years, low company performance occasionally led to the Israeli component being significantly reduced or eliminated altogether, cutting total compensation in some cases to the level of a single month’s pay.
The higher base salary will also raise all social benefits and retirement contributions, since these are calculated as a percentage of base pay. With an 8.2% increase, Intel employees in Israel will see proportional gains in social contributions, compensation, and training funds. In addition, since bonuses are calculated as a percentage of salary, their absolute value (in shekels) will also rise.
According to the internal message, the new salary model will take effect on January 1, 2026. The “Israeli component” for 2025 will be paid for the final time in the February 2026 paycheck.
The decision comes during a period of strong performance for Intel globally. The company recently reported third-quarter 2025 revenue of $13.7 billion, returning to profit after a series of losses. Intel’s stock has surged about 95% since the beginning of the year, and the company has announced nearly $20 billion in new capital commitments from investors and governments.
Intel Israel currently employs around 9,300 people across three development centers and a manufacturing plant in Kiryat Gat.
In response to a query from CTech, Intel stated:
“We are aligning compensation for our Israel employees to provide greater stability and ensure competitiveness in the local market. These updates reinforce Intel’s commitment to being an attractive and responsible employer in Israel.”
