Defense-Tech Salaries Rise: Average Developer Pay Hits 50,000 Shekels

A new report by the recruitment firm GotFriends, obtained by Globes, indicates that while many technology companies continue to cut staff and slow down hiring as part of efficiency measures surrounding the adoption of artificial intelligence, startups in the defense-tech sector are actively expanding their workforce. The number of new jobs in the industry rose in 2026 by 20% compared to the same period last year, and salaries are climbing by about 8%.

In recent months, dozens of technology companies in Israel and around the world have announced new rounds of layoffs, explaining that this is part of efficiency measures accompanying the expansion of artificial intelligence usage, the automation of work processes, and the re-examination of personnel structure. However, while large parts of the high-tech industry are cutting staff, one sector continues to move in the opposite direction.

According to the report, the number of new jobs opened in defense-tech startups rose this year by 20% compared to the same period last year. At the same time, salaries in the sector rose by about 8%, a figure that illustrates the growing competition for employees with experience in software, hardware, cyber, and artificial intelligence. According to GotFriends, among the companies currently hiring the largest number of employees in the field are Kela Technologies, XTEND, Airis Labs, D-Fend Solutions, and Axon Vision.

Direct purchase orders from the Ministry of Defense

The increase in the number of jobs comes alongside a broader growth of the entire sector. According to the report, defense-tech companies worldwide have raised about $12.3 billion since the beginning of 2026, almost twice as much as in the same period last year. In Israel, companies in the field have raised about $846 million since the beginning of the year, a sum already approaching the total fundraising volume recorded in 2025.

However, investments are only part of the story. About 800 Israeli startups are already receiving direct purchase orders from the Ministry of Defense. The industry is no longer relying only on venture capital, but is also beginning to establish business activity and actual revenue. For young companies, this is a significant change, allowing them to test their technology in real conditions and improve it quickly.

Among the companies currently leading the hiring:

• Kela Technologies

• Airis Labs

• XTEND

• D-fend Solutions

• Axon Vision

According to the report's authors, one of the main reasons for the sector's growth is the change in the global security reality. The wars in Ukraine and the Middle East have demonstrated to many countries the need for solutions that can be developed and implemented quickly. At the same time, the procurement model has changed: alongside large defense companies, more governments and armies are turning to startups capable of providing targeted solutions in a short time.

Hardware professions return to center stage

The change is also evident in the types of employees companies are looking for. If in the past the main demand was for software developers, today companies are hiring for almost all areas of development. According to the report, they are looking for Python, Embedded, and C++ developers, alongside cloud and artificial intelligence experts. Simultaneously, the demand for hardware engineers is growing, including FPGA and VLSI engineers responsible for the design and development of chips and electronic components.

One of the prominent trends is the return of hardware engineers to center stage. GotFriends notes that roles such as Hardware Architect, VLSI, and Board Design engineers are today among the most sought-after and rewarding roles in the industry.

Closing the salary gap

Salaries in the sector have risen by about 8% in the last year. The gap in salary levels between defense-tech startups and SaaS, fintech, and cyber companies has narrowed significantly.

For example, the average salary of architects in the hardware field reaches about 50,000 shekels per month, algorithmic engineers earn an average of about 47,000 shekels, AI and VLSI engineers about 45,000 shekels, and the salary of experienced software developers is approaching 44,000 shekels per month.

The competition is no longer just about salary. In the last three years, there has been a sharp increase in the number of candidates who apply to defense-tech companies on their own initiative. The sense of meaning and the desire to work on products with a direct impact on the country's security have become a significant consideration for some candidates when choosing a workplace.