Calculate your net overtime pay in Israel 2025. Enter base monthly salary, overtime hours, and the applicable hourly rate multiple (1.25x or 1.5x). After-tax net result shown.
Enter your monthly base salary, overtime hours, and the applicable rate multiple to see your net overtime earnings after Israeli tax and social contributions for 2025.
Net overtime earned
--
Gross overtime pay
--
Marginal income tax
--
Net overtime
--
Effective overtime rate
--
Your breakdown
Updates live as you type
Item
Amount
How overtime is calculated in Israel
The Israeli Hours of Work and Rest Law sets the first two daily overtime hours at 125% of the regular rate and further overtime at 150%. To find the hourly rate, divide the monthly salary by the standard number of paid hours (typically 182 or 190 depending on the employment basis). Gross overtime is then the hourly rate multiplied by the overtime rate multiple and the number of overtime hours. This gross overtime is added to the monthly salary to determine the total income for that month.
Why marginal rate matters for overtime
Because overtime is added on top of the base salary, it is taxed at the marginal rate of the combined income. For an employee with a base salary of 15,000 ILS per month (180,000 ILS per year), income is already partly in the 31% bracket. Overtime of 20 hours at 1.25x adds roughly 1,974 ILS gross (at an hourly rate of 79 ILS). The marginal tax on that amount could be around 31% income tax plus 12% social, taking about 850 ILS in deductions and leaving around 1,124 ILS net.
Global overtime clauses and when they apply
Many monthly-salaried employees in Israel have a "global overtime" clause (tosfet shaa) in their employment contract, which pays a fixed additional amount per month to cover a set number of overtime hours. This is legal if the employer has accurately estimated the overtime hours. Employees working more than the contracted overtime ceiling may be entitled to additional pay. Hourly workers have no such arrangement and are always entitled to statutory overtime rates for every hour beyond the standard workday.
Frequently asked questions
What are the legal overtime rates in Israel?
Under Israeli labor law (Hours of Work and Rest Law), the first two overtime hours in a workday are paid at 125% of the regular hourly rate (1.25x). Hours beyond two in a single workday are paid at 150% of the regular rate (1.5x). Weekly overtime thresholds also apply. This calculator accepts a blended multiple or you can enter the hours at each rate separately using the two rate fields. Always check your employment contract and applicable collective agreement, as some industries have different arrangements.
How is overtime taxed in Israel?
Overtime pay is treated as regular employment income in Israel and is taxed at the marginal income tax rate. There is no special overtime tax rate. The overtime amount is added to your monthly salary and the total is subject to the progressive Mas Hachnasa brackets. Bituach Leumi and Mas Briut also apply unless the annual ceiling (540,900 ILS) has been reached. This means overtime earned at the end of the year, when the base salary has already crossed into higher brackets, is taxed more heavily than overtime earned at the start of the year.
What is a normal workday and how does overtime start in Israel?
In Israel, the standard working day is 8 hours (or 9 hours in a 5-day week). The standard working week is 43 hours. Hours beyond the daily standard are overtime. The weekly limit before overtime kicks in is 43 hours. Most white-collar employees on monthly salaries receive a global overtime allowance (tosfet shaa) built into their contract, which means they are not entitled to additional overtime pay beyond that amount. Hourly and daily workers are entitled to overtime pay at the statutory rates.
Can my employer refuse to pay overtime in Israel?
If you are an hourly or daily worker, overtime must be paid at the statutory rates under the Hours of Work and Rest Law. Monthly salaried employees often have a global overtime clause in their contract that covers a set number of overtime hours. If you work beyond the hours covered by that clause, you may be entitled to additional compensation. Employment law disputes go to the Regional Labor Court. The Israel Ministry of Labor and Social Affairs provides guidance on entitlements.