Our Methodology
A good financial site has to show where its numbers come from. On this page we detail the sources behind every figure, how each calculator computes its result, and our update policy — so you can check our work.
Official sources
Every numeric parameter on the site — tax brackets, insurance rates, minimum wage, thresholds — is taken from an official source and cross-checked against a second source before publication:
Income tax brackets, the value of a credit point, the surtax threshold, and severance/study-fund exemption ceilings
National Insurance and health-insurance rates, income thresholds, and the average wage in the economy
Minimum wage, the Hours of Work and Rest Law, the Annual Leave Law, and the Sick Pay Law
Cross-checking employee rights and practical interpretation of the legislation
How each calculator computes its result
Gross to Net — income tax is calculated progressively using the 2026 brackets on taxable income (gross salary minus recognized pension contributions), less credit points (₪242 per point). National Insurance and health insurance are calculated in two tiers on gross salary — pension contributions do not reduce them. A 3% surtax applies to monthly income above ₪60,130.
Work Hours — under the Hours of Work and Rest Law: 125% for the first two daily overtime hours, 150% beyond that, based on a 42-hour work week / 182-hour work month.
Severance (Pitzuim) — final monthly salary × years of tenure (Severance Pay Law, 1963), including Section 14 handling and the portion accrued in a pension fund.
How we verify our calculations
Every calculation formula on the site is covered by an automated test suite that runs before every update. The tests include edge cases (minimum wage, salary above the National Insurance ceiling, the surtax threshold) and representative cases checked against results computed by hand from the official reference tables.
In addition, we periodically cross-check our results against the official calculators — the Tax Authority's tax simulator and Bituach Leumi's insurance-contribution calculator — and against real payslips. Any discrepancy found is treated as a bug: fixed, tested, and logged in the changelog on this page.
Update policy
- Tax and National Insurance data is updated at the start of each tax year (January), as soon as official figures are published.
- Minimum wage is updated on the date its increase takes effect (usually April).
- Mid-year legislative changes (like the 2026 bracket reform) are implemented close to their effective date.
- Every page shows the tax year its data reflects. Guides for prior years are merged into the updated guide (with an automatic redirect), and historical figures are kept in comparison tables — as in our "What changed in 2026" guide.
Changelog
July 2026
- New calculator: Employer Cost — the employer share of National Insurance (4.51% / 7.6% by bracket), pension, severance, and study fund
- New guide: what changed in tax and wages in 2026 — a full comparison against 2025 figures
- The 2025 archive guides (tax brackets and minimum wage) were merged into the updated 2026 guides with automatic redirects
- Added author byline and update date to every guide, plus structured data (FAQs, breadcrumbs) on all calculator pages
June 2026
- Full update for the 2026 tax year: new brackets (the 20% bracket now extends to ₪19,000 and the 31% bracket to ₪25,100)
- Updated National Insurance thresholds: the reduced rate applies up to ₪7,703, maximum insurable income ₪51,910
- Updated minimum wage to ₪6,443.85/month and ₪35.40/hour (effective April 2026)
- Fixed National Insurance and health-insurance calculation: it is computed on gross salary (pension contributions do not reduce the liability)
- 2025 tax-bracket and minimum-wage guides were archived, and updated 2026 guides were added
February 2026
- Added the job-offer comparison calculator and content improvements ahead of the new tax year
What the calculators don't know
The calculations assume a standard salaried-employee scenario. Special situations — development-town resident benefits, oleh chadash tax exemptions, disability allowances, multiple employers without coordinated tax withholding, complex fringe-benefit valuations — may change the result. The calculators are a tool for understanding and double-checking, not a substitute for advice from an accountant, tax advisor, or labor lawyer. Found an inaccuracy? Let us know — we fix and document every correction in the changelog.