Monthly Paycheck Explanation
In Israel you will be paid usually between the first and the tenth of the month. Unfortunately for us olim the pay stub is provided in Hebrew making it difficult to understand. Below is a very useful translation of the terms you will see on the pay stub.
Translated by Kim Richardson
| Translation | Explanation | Hebrew |
|---|---|---|
| Percent | NA | אחוז |
| Percent of fixed tax | If someone has a supplementary salary, income tax sets a percentage of tax to take off according to income. For people with only 1 salary, this is not relevant | מס קבוע % |
| Percent of salary | NA | אחוז משרה |
| Working spouse | Relevant for people with working spouses. If your partner does not work then you pay less tax. Only relevant for those above the age of 60 | בן זוג עובד |
| Social Security | Tax that is mandatory to pay - goes to the state. This includes money for the unemployed | ביטוח לאומי |
| Gross pay | Salary before any redutions | ברוטו |
| Gross taxable income items | Income tax says that if a worker users a company issued cell phone for private calls (this is usually allowed), then he must pay tax. The company pays the tax but it must be written on the pay stub. | גילום זקופות |
| Ranking | Ranking in the company, according to the number of degrees you hold, how long you have been with the company etc. | דרוג/דרגה |
| Health Insurance | Basic Health Insurance - mandatory to pay through the company. Anything you pay to a private health insurance (Meuhedet, Maccabi, Clalit) is for extra benefits | דמי בריאות |
| Length of Employment | How much time you have worked in the company | וותק |
| Personal credits | Amount of tax reduction according to sex and child status. Both women and men receive tax reductions if they are married. Women with children receive an additional reduction but men do not. | זיכוי אישי |
| Additional Credits | Reduction in tax because of a degree or because of being an oleh | זיכוי נוסף |
| Pension credits | Tax reduction because of a savings account (depending on type of pension plan) | זיכוי גמל |
| Shift Points | Tax reduction based on shifts worked - Only relevant to those who work in shifts | זיכוי משמרות |
| Mandatory Income tax | Salary amount looked at by income tax before all the reductions in order to figure out how much income tax you must pay. This amount should typically be equivalent to the amount you pay for social security | חייב מ.ה |
| Mandatory - Health Insurance | Gross Pay - Including transportation expenses | חייב ב.ל |
| Work Days | How many working days there were in the pay period | ימי עבודה |
| Standard Days | There is an average of 21.67 days in the pay period - Calculated by the number of work days and months in a year. This number will remain the same in every pay stub | ימי תקן |
| Previous Surplus | How many of your sick/vacation days remained in your last pay period | יתרה קודמת |
| Surplus | How many vacation/sick days you have left | יתרה |
| Amount | NA | כמות |
| Marginal tax | Income tax is according to steps - this is the highest step that you can be on before tax reductions | מס' שולי |
| Marital Status | Single/Married/Divorced | מצב משפחתי |
| Worker Number | NA | מס' עובד |
| Department | Which part of the company you work in | מחלקה |
| Sickness | Sick Days | מחלה |
| Income Tax | State tax based on your income | מס הכנסה |
| Credit Points | # of tax points you receive for being an oleh chadash. The tax reduction works on a point system, where one point is equal to 178 NIS. During the first 18 months after Aliyah, new Olim receive three points per month (535 NIS), two points over the next 12 months, and one point during the last 12 months. **Must inform your employer you are an Oleh Chadash when you begin working** | נ. זיכוי |
| Optional Deductions | All things that are not mandatory to be taken off your pay chec- kupat gemel, pension, etc. | ניכוי רשות |
| Mandatory Deductions | All things that are mandatory to be taken off your pay check - income tax, health insurance, health supplement | ניכוי חובה |
| Net Pay | How much gets deposited in your bank account | נטו |
| Accumulation | How many vacation/sick days you took this pay period | ניצול |
| Accumulated Use | How many sick/vacation days you've used since you began working | ניצול מצטבר |
| Net taxable income items | The amount of a present that you receive minus the tax. Employees generally pay tax on presents they receive from the company. This is not included in income tax | נטו לקילום |
| Transportation | By law, the company must pay for employees to get to and from work (this can be in the form of bus, train, or a parking space | נסיעות |
| Sum payment | Sum/amount to be paid | סכום תשלום |
| Type of vacation | Vacation or sick day | סוג חופשה |
| Total deductions | Total amount of taxes, etc taken out of your pay | סה"כ ניכויים |
| Total Pay | Total gross pay | סה"כ תשלומים |
| Pension Fund | NA | פנסיה מקיפה |
| Accumulation of vacation | How many vacation/sick days you've accrued since you began working | צבירה חופשה |
| Employee pension fund - monthly | The amount the employee puts in the pension fund | קופ"ג מעביד-חודשי |
| Study fund - Monthly | Keren hishtalmut - from the employee - savings account for the period of 6 years | קה"ל מעביד-חודשי |
| Pension Fund | Certain % of your salary goes directly into the fund and the company adds another set % | קופת גמל |
| Net Pay | How much you receive after all the taxes, etc are taken out | שכר נטו |
| Salary | How much you get paid each month | שכר יסוד |
| Cell phone value | The government mandates that every employee needs to pay tax just for having a cell phone, so the company puts extra money into the salary to make up for the difference | שיווי פלאפון |
| Standard Hours | There is average of 186 work hours in the pay period - calculated by the number of work hours and days in the year. This number will remain the same in every pay | שעות תקן |
| Working Hours | How many working hours there were in the pay period | שעות עבודה |
| Employee Name | NA | שם עודבד |
| I.D. # | NA | תעודת זהות |
| Tax | If you have a supplementry income, it will be "כ" for "כן". If you do not have a supplementary income, it will be "ל" for "לא". | תאום מס |
| Description of payment | Describes what each amount is for | תאור התשלום |
| Rate | How much you get paid per month | תעריף |
| Daily Rate | How much you get paid per day | תעריף יום |
| Hourly Rate | How much you get paid per hour | תעריף שעה |
| Start Date | Date you began working at the company | תחילה עבודה |
| Deduction Rate | Company number in regards to income tax - will be the same for everyone in the company | תיק ניכויים |
| Subdivision | Only for the people who work in companies with international divisions-name of the subdivisions | תת מחלקה |