Last Updated on October 22, 2021
You Monthly Pay Package: Salaries & Wages
Hebrew: משכורת חודשי (Maskoret Hodshi)
Before you sign an employment contract, there are a few things you need to know about salaries in Israel.
Israel’s equal wage law
The Equal Opportunity Employment Law in Israel, among other things, ensures that both men and women receive equal remuneration for equal work.
Hourly, weekly or monthly salary
Mostly, Israeli workers receive a monthly salary although some workers can be paid on a daily or hourly basis.
How is my salary made up?
Your salary is made up of a few parts;
- Your gross wage – “bruto” – as stipulated in your contract of work.
- Benefits; car and other allowance, savings plans etc.
- Deductions
- Your final net wage or take-home pay -“netto” – is determined after all benefits have been calculated and deductions have been made.
Compulsory deductions
Your employer is obligated by law to make certain deductions and you are obligated by law to make these payments. These include your personal income tax (misim), bituach leumi (national insurance) and your health insurance premium. Any other deductions like savings plans must be stipulated in your work contract.
- Click here for a Hebrew English translation of a typical pay slip…
- Ace that job interview – get the job you want with these employment resources
Salary Negotiation
It is common practice in Israel to negotiate your salary. You do not have to accept the first offer that is made to you even if you are a new immigrant and a little desperate. Familiarize yourself with the going rates in your professional field – ask your friends, check out average salary charts. If this is your first job in Israel, you may need to accept a slightly lower wage in the beginning but this should be reviewed at the end of your trial period (generally after 3 months).
When will I get paid?
Your employer can pay your salary until and no later than the 10th of each month.
If for some reason your salary is overdue, you are entitled to a 5% compensation for the first week and a 10% compensation for each following week.
How will I get paid?
Your salary can be paid directly into your bank account or your employer may choose to pay you by check – this is highly unlikely in these days of digital banking. The method of payment should be determined prior to employment and stipulated in your contract.
Your pay slip – tlush maskoret
The law states that every employee received a printed pay slip. All deductions, benefits, taxes, bonuses etc., must be recorded on the pay slip.
Keep all your pay slips. You will need them in case of disputes, when applying for unemployment (avtala) benefits, bank loan applications and other discounts according to your circumstances.
