What Does It Actually Mean for Your Paycheck?
This is educational content, not tax advice. The numbers below are illustrative estimates for 2026 based on published tax brackets and credit point values. Your exact take-home pay depends on your specific deductions, insurance premiums, and personal circumstances.
We have covered what נקודות זיכוי (Nekudot Zikui) (credit points) are and how to claim them. Now the most important question: how much extra נטו (Neto) (take-home pay) do they actually put in your pocket each month?
The examples below compare take-home pay for a salaried male oleh with no children in his first 18 months (Phase 1: 3 extra credit points) against what a non-oleh employee at the same salary would receive, and what the same oleh will receive in Phase 3 (months 31–42, 1 extra point). All figures use 2026 credit point value of 216 NIS per point.
Salary: 10,000 NIS/Month
At 10,000 NIS gross, a standard Israeli employee (2.25 base credit points) pays approximately 400–500 NIS in income tax per month after credit points. As an oleh in Phase 1 with 5.25 total credit points (2.25 base + 3 extra), the oleh receives an additional 648 NIS of credit — which at this salary level effectively brings income tax close to zero.
- Non-oleh: ~450 NIS income tax. Take-home approximately 8,700 NIS.
- Oleh Phase 1 (months 1–18): ~0 NIS income tax (credit points exceed liability). Take-home approximately 9,300–9,400 NIS.
- Oleh Phase 3 (months 31–42): ~230 NIS income tax. Take-home approximately 9,000–9,100 NIS.
At 10,000 NIS, the oleh credit points in Phase 1 effectively eliminate income tax entirely. The monthly gain over a non-oleh is approximately 600–700 NIS.
Salary: 15,000 NIS/Month
At 15,000 NIS gross — a common salary for mid-career professionals in Israel — the effect of the credit points is highly visible:
- Non-oleh: approximately 1,200–1,400 NIS income tax per month. Take-home approximately 12,400 NIS.
- Oleh Phase 1 (months 1–18): approximately 600–700 NIS income tax. Take-home approximately 13,000–13,100 NIS.
- Oleh Phase 2 (months 19–30): approximately 800–900 NIS income tax. Take-home approximately 12,800–12,900 NIS.
- Oleh Phase 3 (months 31–42): approximately 1,000–1,100 NIS income tax. Take-home approximately 12,600–12,700 NIS.
At 15,000 NIS, the Phase 1 benefit is approximately 600–700 NIS per month compared to a non-oleh colleague on the same salary. Over 18 months this compounds to approximately 11,000–12,000 NIS extra take-home pay — equivalent to an extra month's salary.
Salary: 25,000 NIS/Month
At 25,000 NIS gross — a senior professional salary in Israel — the income tax liability is higher, but the olim credit points still deliver a meaningful fixed benefit:
- Non-oleh: approximately 4,000–4,500 NIS income tax per month. Take-home approximately 18,800 NIS.
- Oleh Phase 1 (months 1–18): approximately 3,350–3,850 NIS income tax. Take-home approximately 19,400–19,500 NIS.
- Oleh Phase 2 (months 19–30): approximately 3,550–4,050 NIS income tax. Take-home approximately 19,200–19,300 NIS.
- Oleh Phase 3 (months 31–42): approximately 3,800–4,300 NIS income tax. Take-home approximately 19,000–19,100 NIS.
Because each credit point saves a fixed 216 NIS regardless of income level, the absolute NIS saving (approximately 648 NIS/month in Phase 1) is the same at 25,000 NIS as it is at 15,000 NIS. As a proportion of income, the benefit is smaller at higher salaries — but in absolute terms, it is identical.
Bituach Leumi and Health Tax Are Separate
The figures above show income מס הכנסה (Mas Hachnasa) only. Your full payslip deductions also include Bituach Leumi (national insurance) and health tax (Hetel Briut). Olim receive a significant Bituach Leumi exemption during their first year — which means your total net benefit in year 1 is even larger than the credit point numbers above suggest. We cover the Bituach Leumi exemption in the Path 1 module on national insurance.
A Simple Rule of Thumb
No matter what salary you earn, the olim credit point benefit in Phase 1 is worth approximately 650 NIS/month in reduced income tax. Over 42 months at the graduated rate, your total income tax saving from the olim schedule alone is close to 20,000 NIS. That is real money — and it arrives automatically on your payslip every month, as long as you submitted Form 101 correctly.