Overtime Rates
Under the Hours of Work and Rest Law, overtime is paid at: 125% for the first 2 overtime hours per day, and 150% thereafter. Weekly overtime (beyond 42 hours) is also at 125%/150%. Overtime pay is fully taxable as employment income at the employee's marginal rate – there is no special tax treatment for overtime.
Global Overtime Agreements
Some employers use 'global overtime' arrangements where a fixed amount is added to the salary to cover expected overtime. This is legal if the amount reasonably reflects actual overtime. The entire global overtime amount is taxable income.
בסיס חוקי
- Hours of Work and Rest Law 5711-1951
- Section 2(2) – Employment income
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.