Tool
Bruto-to-Neto Salary Calculator (Israel)
Convert your gross Israeli salary (bruto) into your monthly take-home pay (neto), with full tax and contribution breakdown.
Your first Israeli paycheck looks nothing like your offer letter. Israel takes income tax, National Insurance (Bituach Leumi), health tax, and a mandatory pension contribution off the top. The gap between your gross salary (bruto) and your net take-home (neto) can be 25%–40%, depending on your income level and family situation.
This calculator runs the actual progressive tax brackets used by the Israel Tax Authority for the current year, plus the Bituach Leumi reduced/regular rate split and the standard 6% employee pension contribution. Enter your gross monthly salary and the calculator returns the exact deductions and the neto you will receive each month.
Olim should know about tax credit points (nekudot zikkui): every Israeli resident gets 2.25 points by default, and Olim get an additional bonus (3 points in year 1, 2 in year 2, 1 in year 3) under the standard new-immigrant benefits package. Each point is worth roughly ₪242 per month against your tax bill. Toggle the Olim status checkbox in the calculator to see how this changes your neto.
Use this before signing an offer, before negotiating a raise, and any time you want to verify your payslip is correct. If you already have a payslip and want to understand what every line means, use the Payslip Decoder.
Gross-to-Net Salary Calculator
See exactly what you take home from your Israeli salary. Includes olim credit points, pension contributions, and a comparison to US/UK deductions.
Salary & Personal Details
Gross Monthly Salary (NIS)
₪15,000
₪5,000₪80,000
Months Since Aliyah
6 months
0 months60 months
Gender (affects base credit points)
Employee Deductions
Pension Contribution (Employee)
6%
6%7%
Keren Hishtalmut (Employee)
2.5%
0%2.5%
Employer Contributions
These don't reduce your take-home pay. They are paid on top of your gross salary.
Employer Pension
6.5%
6.5%7.5%
Employer Keren Hishtalmut
7.5%
0%7.5%
Net Salary (Take-Home)
₪11,850
79.0% of grossTotal Tax (Income + NI + Health)
₪1,875
12.5% effective rateTotal Deductions
₪3,150
Tax + Pension + Study FundEmployer Total Cost
₪17,928
What you actually cost the companyMonthly Salary Breakdown
Gross Salary
₪15,000
Income Tax (Mas Hachnasa)
-₪730
National Insurance (Bituach Leumi)
-₪542
Health Insurance (Dmei Bri'ut)
-₪604
Pension (Pensia)
-₪900
Study Fund (Keren Hishtalmut)
-₪375
Net Salary (Sachar Neto)
₪11,850
Salary Breakdown
Net Salary
Income Tax
NI + Health
Pension
Keren Hishtalmut
79.0%
₪0₪15,000
Net Salary Over Your Olim Credit Period
Your net salary will drop by approximately ₪726/month when your olim credit points fully expire at month 42.
Credit point phase transitions (months 18, 30, 42)
Your Olim Credit Points
You currently have 5.25 credit points (3 extra olim points), saving you ₪1,271/month in income tax.
Olim credit phases: +3 points (months 1-18), +2 points (months 19-30), +1 point (months 31-42), then 0 extra. Each credit point = ₪242/month in tax reduction.
Hebrew Payslip Terms (Tlush Maskoret)
Your Israeli payslip uses Hebrew terms. Here is what each line means:
- Gross Salary = שכר ברוטו (Sachar Bruto)
- Income Tax = מס הכנסה (Mas Hachnasa)
- National Insurance = ביטוח לאומי (Bituach Leumi)
- Health Insurance = דמי בריאות (Dmei Bri'ut)
- Pension = פנסיה (Pensia)
- Study Fund = קרן השתלמות (Keren Hishtalmut)
- Net Salary = שכר נטו (Sachar Neto)
How Israel Compares to the US and UK
- In the US, Social Security tax is 6.2% plus 1.45% Medicare, totaling 7.65%. Israel's equivalent (Bituach Leumi + Health Tax) totals approximately 5.5-12% depending on your income bracket.
- Unlike the US 401(k), Israeli pension is mandatory: your employer contributes 6.5% to the pension fund plus an additional 8.33% in severance provisions (Pitzuim) on top of your salary — a total employer cost of 14.83% before Keren Hishtalmut.
- Keren Hishtalmut has no US equivalent. It is a tax-advantaged savings vehicle where your employer matches up to 7.5% of your salary. After 6 years the funds can be withdrawn tax-free.
- UK employees pay 8% NI on earnings between the threshold and upper limit. Israel's combined NI + Health deduction is comparable at similar income levels.
Employer Cost Breakdown
What your employer pays on top of your gross salary
Your Gross Salary
₪15,000
Employer Pension (6.5%)
+₪975
Employer Keren Hishtalmut (7.5%)
+₪1,125
Employer National Insurance
+₪828
Total Employer Cost
₪17,928
Important Notes
This calculator uses 2026 tax brackets and rates (post-budget reform: 5-bracket structure, 50% top marginal rate including the 3% surtax above ₪60,130/month). Results are estimates for educational purposes only. Actual payslip amounts may vary based on employer-specific agreements, collective bargaining, overtime, bonuses, and other factors. The calculator does not account for travel reimbursements (Nesi'ot), meal vouchers, or other non-cash benefits.
Always consult a licensed Israeli tax advisor or accountant for precise calculations.
- Israel Tax Authority - Income Tax Brackets and Credit Points (2026)(2026) gov.il ↗ ↩
- National Insurance Institute of Israel (Bituach Leumi) - Contribution Rates btl.gov.il ↗ ↩Last verified: 2026-04-30
- Nefesh B'Nefesh - Financial Guide for New Immigrants nbn.org.il ↗ ↩Last verified: 2026-04-30
שתפו:
Frequently asked questions
Israeli employees pay (1) progressive income tax up to 50% on the highest bracket, (2) Bituach Leumi at 0.4% on income up to roughly ₪7,500 and 7% above that (employee share), (3) health tax at 3.1% / 5%, and (4) a mandatory 6% pension contribution. Combined, this typically removes 25%–40% of gross salary.
Yes. For the first three years of residency, Olim receive bonus tax credit points (3/2/1 in years 1/2/3) on top of the standard 2.25 points. There is also a 10-year exemption on income from foreign sources earned outside Israel for new immigrants and returning residents (Toshav Hozer Vatik). This calculator handles the credit points; foreign-income exemptions do not apply to a regular Israeli salary.
No — enter only the monthly base salary listed in your contract. Bonuses (annual, 13th month, performance) are taxed separately when paid out and the tax rate on them depends on your year-to-date income.
The legal minimum employee contribution is 6% (with the employer matching 6.5% plus 6% to severance). Most pension funds default to this. If you have actively chosen a higher contribution rate (some funds allow up to 7%), use that.
The result is accurate to within a few shekels for standard cases. Real payslips may differ slightly due to (1) credits or debits from prior months, (2) study fund (keren hishtalmut) contributions, (3) meal allowances, (4) travel reimbursements taxed as income. Use the Payslip Decoder to reconcile real payslips line by line.
Related reading
Understanding your first Israeli payslip
A line-by-line walkthrough of every section on a tlush sachar (Israeli payslip).
Tax credit points for Olim explained
How nekudot zikkui work, what Olim get, and how to claim them.
Bituach Leumi: what every employee pays and gets
The two-tier rate, what it covers, and why it shows up on every payslip.
Related tools
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Enter your gross salary and see a full breakdown of deductions, contributions, and net pay.
Olim Tax Calculator
Estimate your Israeli income tax with olim credit points, the 10-year exemption, and treaty benefits.
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Estimate your monthly living costs in Israel based on city, family size, and lifestyle.
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