How to Read an Israeli Payslip
Payments (Gross)
| Item | Explanation |
|---|---|
| Base Salary | Basic salary per employment agreement |
| Overtime | 125% for first 2 hours, 150% beyond |
| Convalescence Pay | Annual payment (June-July) |
| Travel Allowance | Up to 22.60 NIS per day |
Deductions
| Item | Explanation | Rate |
|---|---|---|
| Income Tax | Progressive brackets - higher income = higher tax | 10%-50% |
| National Insurance | Funds unemployment, child allowance, work injury | ~3.5%-12% |
| Health Tax | Funds health fund (Kupat Cholim) | ~3.1%-5% |
| Pension (employee) | Employee contribution to pension | 6% |
Employer Contributions (not deducted from salary)
| Item | Rate |
|---|---|
| Pension (employer) | 6.5% |
| Severance (Section 14) | 6% |
Bottom Line
Gross = Total payments
Deductions = Tax + National Insurance + Health + Pension
Net = Gross - Deductions = What you actually receive
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Frequently Asked Questions
+ How do I read an Israeli payslip?
An Israeli payslip includes details about your gross salary, deductions (income tax, national insurance, pension), and net pay. Each line item represents a specific component of your earnings and withholdings. ALMO AI helps you understand your payslip, ensuring accuracy and transparency.
+ What is 'gross salary' on an Israeli payslip?
Gross salary is your total earnings before any deductions are taken out. It includes your base salary, overtime pay, bonuses, and other taxable income. ALMO AI helps you understand how your gross salary is calculated and how it impacts your net pay.
+ What are common deductions on an Israeli payslip?
Common deductions include income tax (Mas Hachnasa), national insurance (Bituach Leumi), health insurance (Bituach Briut), and pension contributions (Kupat Gemel/Pensia). Understanding these deductions is crucial for managing your finances. ALMO AI provides clarity on these deductions, empowering you to make informed financial decisions.
+ What is 'net pay' on an Israeli payslip?
Net pay is the amount of money you receive after all deductions have been taken out of your gross salary. This is the amount deposited into your bank account. ALMO AI can help you track your net pay over time, allowing you to budget effectively and achieve your financial goals.
+ How is income tax calculated on an Israeli payslip?
Income tax (Mas Hachnasa) is calculated based on your income level and tax brackets. The amount withheld depends on your salary and any tax credits you may be eligible for. ALMO AI helps you estimate your tax liability and understand how it's reflected on your payslip.
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