How to Read an Israeli Pay Stub (Tlush)

Why this matters

The Israeli Tlush (pay stub) is one of the most confusing documents new Olim encounter. There are 20+ line items, half in financial Hebrew, and the math is not obvious. Misreading it can cost you thousands of shekels in unclaimed credits, missed pension matches, or unnoticed errors.

The structure of a Tlush

Every Israeli Tlush follows the same general layout, though formatting varies by payroll provider (Hilan, Synel, Malam Team, Niloosoft).

1. Header. Employer name, your name, Teudat Zehut, position, hire date.

2. Income section (Schar). Base salary and any bonuses, overtime, allowances.

3. Deductions (Nikuyim). Tax, Bituach Leumi, health tax, pension employee share, union dues.

4. Employer contributions (Hafrashot Ma'avid). Pension employer share, severance, training fund. Not deducted from your gross.

5. Net pay (Tashlumim). What hits your bank account.

6. YTD summary (Mitzta'ber). Cumulative income and tax for the year.

Reading the income section (Schar)

Look for these labels.

- Schar Yesod. Base salary. The monthly contracted amount.

- Schar Brutto. Gross pay for the month, including base plus add-ons.

- Sha'ot Nosafot. Overtime. Israeli law: 125 percent for the first 2 overtime hours per day, 150 percent after.

- Bonus. Discretionary or contractual bonus.

- Achzakat Ho'tza'ot. Expense reimbursements (travel, phone). Some are taxable, some are not.

- Eshel. Per diem meal allowance for fieldwork.

- Ne'sia'ot. Travel allowance. Often paid as Toshav (resident bus pass cost equivalent).

- Aliyah Hadasha or Hashtalmut. Tuition or training reimbursement.

The number that matters most: Schar Brutto LeChiyuvey Mas (gross salary for tax purposes).

Reading the deductions section (Nikuyim)

Five main deductions.

1. Mas Hachnasa (income tax)

Israeli tax is progressive (brackets shown in the tax obligations article). The payroll system calculates it automatically.

- Annual tax brackets: 10, 14, 20, 31, 35, 47, 50 percent

- Nikodot Zikui (tax credit points) reduce the bill

- Mas Yesef (surcharge): extra 3 percent on income above ~NIS 721,560 per year

Common credit points:

- 2.25 standard for every Israeli resident

- 0.25 extra for women

- 1 to 2.5 extra for new Olim for the first 3.5 years

- 0.5 to 1 per dependent child under 18

- Extra for IDF discharge, single parents, or chronic conditions

2. Bituach Leumi (national insurance)

Employee share: roughly 3.5 percent on the first NIS 7,522 of monthly salary, then 12 percent on the rest, capped at around NIS 50,695 per month. Total bite is around 7 to 12 percent of typical salaries.

This funds: old-age pension, disability, maternity, unemployment, work-injury, child allowance, and partial health.

3. Mas Bri'ut (health tax)

3.1 to 5 percent on similar tiers. Funds your Kupat Holim. Combined with Bituach Leumi on most Tlushim.

4. Pension contribution (Hashlamat Hafrashat Oved L'Pensia)

You contribute 6 percent of gross salary to your Keren Pensia. Mandatory for all employees.

5. Other deductions

- Va'ad Oved (workers committee dues): NIS 30 to NIS 100 per month if you are union-eligible.

- Voluntary Keren Hishtalmut employee share (2.5 percent if you contribute matched by 7.5 percent from employer).

- Loan repayments to the employer.

- Garnishments from court orders.

Reading the employer contributions (Hafrashot Ma'avid)

These do NOT come out of your gross. They are on top of it, paid by your employer into your pension account.

- Tagmulim L'Pensia. Employer pension contribution. 6.5 percent of gross.

- Pitzuim. Employer severance contribution. 6 percent mandatory, or 8.33 percent if your contract is "Section 14" structured.

- Keren Hishtalmut Ma'avid. Employer Keren Hishtalmut share. 7.5 percent of gross, only if the employer offers it (most white-collar jobs do).

- Mas Sachar Ma'avid. Employer payroll tax. Some sectors only.

- Bituach Leumi Ma'avid. Employer Bituach Leumi share. About 3.55 to 7.6 percent on tiers.

The total employer cost of an employee is typically 20 to 28 percent higher than the gross salary on the Tlush.

The net pay calculation (Schar Netto)

```

Schar Brutto LeChiyuvey Mas

- Mas Hachnasa (after credit points)

- Bituach Leumi + Mas Bri'ut (employee)

- Pension contribution (employee 6 percent)

- Keren Hishtalmut (employee 2.5 percent, if applicable)

- Other deductions

= Schar Netto LeTashlum (net pay)

```

A NIS 20,000 gross salary for a 35-year-old single Oleh in year 1 typically nets:

- Gross: NIS 20,000

- Tax (after Oleh credits): NIS 1,500

- Bituach Leumi + Bri'ut: NIS 1,800

- Pension employee: NIS 1,200

- Keren Hishtalmut employee: NIS 500

- Net: NIS 14,900 to NIS 15,500

The YTD section (Mitzta'ber)

Bottom of the Tlush. Cumulative numbers for the calendar year.

- Schar Brutto Mitzta'ber. Year-to-date gross income.

- Mas Mitzta'ber. Year-to-date tax paid.

- Bituach Leumi Mitzta'ber. Year-to-date Bituach Leumi.

- Nikodot Zikui. Total credit points applied this year.

Use this at year-end to file a Doch Hatamat Mas (annual tax reconciliation) if you want to claim a refund.

What Olim should check every month

1. Confirm Olim credit points are applied. If you arrived after January 1 and your employer did not apply Olim credits, you are overpaying tax by NIS 300 to NIS 700 per month. Submit Tofes 101 again with Olim status.

2. Verify pension fund name and account. Hafrashot Ma'avid should flow into your Keren Pensia. Check the fund name on the Tlush matches your records.

3. Check Keren Hishtalmut enrollment. If your contract includes it, the employer must contribute 7.5 percent. Missing it costs NIS 1,500 to NIS 3,000+ per month in tax-advantaged savings.

4. Watch for unauthorized deductions. Some employers wrongly deduct training costs, equipment, or "team" payments. All wage deductions must be explicit in your contract.

How to fix errors

1. Email HR with the Tlush attached and the issue circled.

2. If unresolved within 30 days, contact the Ministry of Labor (Misrad HaAvoda) hotline 2392.

3. For systematic underpayment, a Histadrut union case or a Beit Din L'Avoda labor court claim is the next step. Most cases settle.

Common mistakes Olim make

Filing Tofes 101 incorrectly in year 1. Tofes 101 declares your tax status. If you mark single instead of married or skip Olim status, your employer applies wrong credits. Re-file at any time.

Not enrolling in Keren Hishtalmut. Roughly half of new Olim accept the default which omits the Keren Hishtalmut even when their contract entitles them. Demand it.

Accepting the default pension fund. The cheapest fund saves 0.5 to 1.5 percent per year in fees, which compounds to NIS 100,000+ over a career.

Ignoring the YTD numbers. A year-end reconciliation often returns NIS 2,000 to NIS 8,000 in overpaid tax. Filing is free at gov.il.

What to do this month

1. Pull the last 3 Tlushim from your payroll portal.

2. Identify every line item by Hebrew label and amount.

3. Confirm Olim credit points are applied.

4. Verify pension and Keren Hishtalmut contributions match your contract.

5. Note your YTD numbers in a tracking spreadsheet so you can claim refunds at year end.