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.

  1. What Is Employment Income?

    Definition and components of taxable employment income in Israel

  2. Company Car Benefit Valuation

    How the taxable value of a company car is calculated for employees in Israel

  3. Taxation of Bonuses and Grants

    How annual bonuses, performance grants, and signing bonuses are taxed in Israel

  4. Benefits in Kind (Non-Cash Compensation)

    Taxation of non-monetary benefits provided by employers to employees in Israel

  5. Employer Pension and Training Fund Contributions

    Tax treatment of employer contributions to pension, severance, and training funds