Minimum Wage and Tax Implications

2026 Minimum Wage

The minimum wage in Israel is ₪5,880 per month (₪33.49/hour) for a full-time position (182 hours/month). Annual income at minimum wage: ₪70,560. After applying basic credit points (2.25 points = ₪6,534 annual credit), most minimum-wage earners pay very little or no income tax.

Example

Minimum wage worker (single, no children): ₪70,560/year

Tax before credits: ₪70,560 × 10% = ₪7,056

Credit points (2.25): ₪6,534

Net tax: ₪7,056 − ₪6,534 = ₪522/year (0.7% effective rate)

A woman with one child: credit points 4.25 = ₪12,342 → pays ₪0 tax.

בסיס חוקי

  • Minimum Wage Law 5747-1987

Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.