Payroll

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.

  1. Understanding Your Pay Slip

    Decoding the components of an Israeli pay slip – gross salary, deductions, benefits, and net pay

  2. Minimum Wage and Tax Implications

    Israel's minimum wage, its tax treatment, and why most minimum-wage earners pay little or no income tax

  3. Overtime Taxation

    How overtime hours are calculated and taxed in Israel

  4. 13th Month Salary

    Tax treatment of the 13th salary payment common in Israeli companies

  5. Convalescence Pay (Dmei Havra'a)

    Taxation of the annual convalescence pay benefit in Israel