Pay Slip Components
Every Israeli employer must provide a detailed monthly pay slip (tlush sachar). The slip must show: gross salary, all additions (overtime, bonus, benefits-in-kind), all deductions (income tax, National Insurance, health insurance, pension, training fund), and the net salary paid. Understanding each line is essential for verifying correct tax treatment.
Typical Pay Slip Lines
| Line Item | Addition/Deduction | Typical Rate |
|---|---|---|
| Base salary | Addition | Per contract |
| Overtime | Addition | 125%–150% |
| Car benefit | Addition (imputed) | 2.48% of list price |
| Income tax | Deduction | Per brackets + credits |
| National Insurance | Deduction | 3.5%–12% |
| Health insurance | Deduction | 3.1%–5% |
| Employee pension | Deduction | 7% |
| Training fund | Deduction | 2.5% |
| Net salary | — | Gross minus all deductions |
Practical Tip
Check your pay slip monthly against your Form 101 credit points. Common errors include: missing credit points (especially after life events), incorrect car benefit calculation, and missing pension contributions. Any error compounding over 12 months becomes significant.
בסיס חוקי
- Protection of Workers Law – Pay slip requirements
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.