Employees at Intel Israel are set to receive a higher annual bonus this year, marking a clear recovery from last year’s sharp dip. The total payout will equal 1.8 months of salary. Of this, 1.2 months will come from the local bonus component. This is a notable improvement from the previous year, when bonuses fell to just 0.8 months’ pay.
The upcoming payout, scheduled for February, carries added significance. It will be the final bonus issued under Intel’s earlier compensation framework. Until now, employee pay included a variable local component alongside base salary, quarterly profit-linked bonuses, annual performance incentives, and stock-based rewards. This structure allowed bonuses to swing widely depending on business outcomes.
From 1 January, 2026, Intel has moved to a revised salary model. Under the new system, the variable local component has been folded into base pay. As a result, future bonuses will be calculated on higher fixed salaries, while other incentive elements remain in place. Quarterly profit bonuses, annual performance payouts, and equity rewards will continue as part of the broader compensation mix.
Historically, Intel Israel employees were accustomed to much larger annual bonuses. Before 2025, payouts often ranged between 2.5 and 3 months’ salary. The reduction last year stood out as an exception rather than the norm, making this year’s rebound particularly noticeable.
The bonus update follows Intel’s fourth-quarter 2025 financial results, which offered cautious encouragement. Revenue reached $13.7 billion, coming in above company guidance. Earnings and margins also exceeded expectations. However, challenges remain. Ongoing supply limitations, manufacturing capacity constraints, and the impact of years of underinvestment continue to restrict how quickly Intel can scale. These issues are especially relevant as demand rises for advanced and AI-related computing workloads.
Overall, the higher bonus reflects improving performance, even as structural and operational hurdles persist.
