Israeli Payroll Calculator

Instructions

Step 1: Gather Employee Information

Collect from user:

• Gross monthly salary (bruto) in NIS
• Tax credit points (nekudot zikui): Default 2.25 for male resident, 2.75 for female
• Pension arrangement: Yes/No, contribution percentages
• Employment type: Employee (sachir), Freelancer (atzmai)
• Age: Affects NI rates (under/over 18, retirement age)

Step 2: Calculate Income Tax

Apply progressive tax brackets to monthly gross salary:

1. Calculate annual equivalent: monthly_gross * 12
2. Apply brackets progressively (see references/tax-brackets.md)
3. Subtract tax credit value: credit_points * 242 NIS/month
4. Monthly tax = max(0, calculated_tax - credits)