[News] Intel Israel Reportedly Revamps Pay Structure, Boosting Monthly Salaries by 10%

While tech giants worldwide are tightening their belts, Intel Israel is reportedly taking the opposite approach by raising employee salaries. According to CTech, an internal email revealed that Intel announced a structural change to its compensation and salary model for all employees in Israel, with base salaries expected to rise by about 8.2 percent, resulting in an overall 10 percent increase in fixed monthly pay. The new salary model will take effect on January 1, 2026, the report adds.

As the report points out, under the new structure, Intel will remove the separate Israeli pay component—previously a bonus tied to performance—and fold it into employees’ base salaries. The adjustment brings Intel Israel’s compensation model in line with the structure used across its global sites. The higher base salary will also raise social benefits and retirement contributions, as the report points out, since these are calculated as a percentage of base pay.

Meanwhile, the report also notes that other aspects of the compensation plan will remain unchanged. Employees will continue to receive their regular quarterly and annual bonuses, along with stock-based incentives under the company’s standard compensation program.

Intel’s Israeli pay package previously included a base salary, quarterly profit bonus (QPB), annual performance bonus (APB), and an additional “Israeli component.” As the report notes, in previous years, weak company performance at times led to significant cuts to the Israeli component.

Intel is currently in a period of improving performance. The company posted third-quarter 2025 revenue of $13.7 billion, returning to profit after several quarters of losses, and has announced close to $20 billion in new capital commitments from investors and governments.

As noted by the report, Intel Israel employs roughly 9,300 people across three development centers and a manufacturing facility in Kiryat Gat. Intel’s Israeli operations have been central to Panther Lake’s development. According to CTech, the project, like many of Intel’s flagship products, was led by its R&D teams in Israel.

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(Photo credit: Intel)