Employment Tax
This category should begin with a fuller overview of Employment Tax in Israel rather than a short label and a grid of links.
Employment Income
Employment income in Israel includes salary, bonuses, commissions, overtime pay, and various allowances. All employment income is subject to income tax through payroll withholding. Learn what counts as taxable employment income, which components are partially exempt, and how your employer calculates the monthly tax deducted from your paycheck.
5 articlesEmployee Benefits
Employee benefits such as company cars, meals, cell phones, gifts, and subsidized loans have specific tax implications in Israel. Some are considered taxable fringe benefits and are added to your income for tax purposes. Understand which benefits are taxable, how their value is calculated, and which benefits enjoy favorable or exempt tax treatment.
5 articlesPayroll
Israeli payroll involves multiple tax and social insurance components deducted from each paycheck. This section explains the breakdown of a typical Israeli pay slip — income tax withholding, National Insurance contributions, health insurance, pension contributions, and other mandatory deductions — and how employers calculate and report these amounts.
5 articlesTermination
When employment ends in Israel — whether through termination, resignation, or retirement — several tax issues arise. This section covers the tax treatment of severance pay, unused vacation payout, advance notice pay, non-compete compensation, pension fund withdrawals upon termination, and the process for receiving your final tax reconciliation from your employer.
5 articlesSpecial Employment
Certain employment arrangements in Israel have unique tax rules — including foreign experts with special tax status, shift workers, commissioned salespeople, seasonal workers, domestic workers, and employees working from home. This section covers the special tax provisions, allowances, and reporting requirements that apply to each category.
5 articlesEmployer Obligations
Israeli employers have extensive tax-related obligations. These include withholding income tax and National Insurance from employee wages, making employer pension contributions, filing monthly payroll reports (Form 102), issuing annual tax certificates (Form 106), and maintaining proper employee records. Understand the deadlines, penalties, and best practices for compliance.
5 articles