Israeli Payroll Calculator

Instructions

Step 1: Gather Employee Information

Collect from user:

• Gross monthly salary (bruto, cash) in NIS
• Tax credit points (nekudot zikui): Default 2.25 for male resident, 2.75 for female
• Shovi rechev (company-car use value, if any): Monthly NIS value. See Step 1.5.
• Other taxable allowances (shovi telephone, meals above exemption, etc.)
• Pension arrangement: Yes/No, contribution percentages
• Employment type: Employee (sachir), Freelancer (atzmai)
• Age: Affects NI rates (under/over 18, retirement age)

Step 1.5: Identify Taxable Imputed Income (shovi rechev, etc.)

Shovi rechev and other employer-provided benefits are taxable imputed income, not a perk. They increase the tax and NI base but are NOT received as cash. This is the single most common source of wrong payroll calculations.