Your Israeli payslip (tlush) in 2026: every line explained, with a worked example

Your tlush line by line

The bottom of the slip shows the year-to-date totals (gross, tax, contributions) and the employer’s deposits to pension, severance and keren hishtalmut. Those totals end up on Form 106.

Worked example: ₪15,000 gross

Resident employee, male, no children (2.25 credit points), mandatory pension and keren hishtalmut at 2.5%, no overtime or travel.

Social contributions total about ₪1,217. The tax before the pension credit, the figure from the brackets after points (₪1,572), is what most calculators show; a real payslip is slightly better thanks to the credit on your pension contribution. Pension and keren hishtalmut are not lost: they are savings in your name.

What your employer pays on top

Gross pay is not the full cost of your job. On the same ₪15,000 salary, the employer also pays:

• Employer Bituach Leumi: 4.51% up to ₪7,703 then 7.6%, about ₪902.
• Employer pension: 6.5%, or ₪975.
• Severance (pitzuim): at least 6%, often 8.33% (here ₪1,250). Under a “section 14” arrangement, these deposits replace the severance due on dismissal.
• Employer keren hishtalmut: usually 7.5%, or ₪1,125, tax-exempt up to a salary of ₪15,712 a month in 2026.

Total employer cost: about ₪19,251 a month. Useful when you negotiate an offer, and when you compare with going freelance (osek patur or murshe), where you pay all of it yourself.

Forms 101 and 106

Form 101 (tofes 101): what you declare

Filled in when you start a job and again every January, it declares your situation: residency, children, spouse, degree, army service, aliyah date and other income. It is your employer’s only source for applying your credit points. An incomplete 101 is the top cause of overpaid tax among olim. Olim points and their schedule are covered in the oleh tax benefits guide.

Form 106 (tofes 106): the annual summary

Your employer hands it over by 31 March of the following year, or when you leave. It summarises the year’s gross pay, tax and contributions withheld, pension deposits and benefits. Keep it: it is the basis for a tax refund claim and any later check.

The most common mistakes

• Missing credit points: children, degree, aliyah date or army service not declared on Form 101.
• Two employers without tax coordination: the second employer withholds at the top rate until it receives the Tax Authority’s teum mas certificate.
• Pension starting too late: an employee who already has a pension fund is entitled from day one; the employer can catch up retroactively within three months.
• Havra’a forgotten after the first year, or paid at the wrong rate.
• Overtime folded into a “global salary” with no clause in the contract.
• 2026 correction not made: amendment 288 widened two brackets from 1 January; payslips from January to March had to be corrected. See the income tax guide.

How to get it fixed

1. Ask payroll for an explanation in writing, pointing to the line. Many errors come from a mistyped 101 and are fixed the following month.
2. File a new Form 101 if your situation changed (birth, degree, aliyah), with supporting documents.
3. For the past, the employer can correct within the current year; beyond that, overpaid tax is claimed from the Tax Authority, for the last six years, using Form 106.
4. For unpaid pension or havra’a, these are labour rights: a letter to the employer, then an employment lawyer if needed.

What changes in 2027

Income tax brackets are frozen through 2027: unless a new law passes, they stay at their 2026 levels. Amounts linked to the average wage (reduced-rate threshold, contribution ceiling, keren hishtalmut and pension ceilings) are revised every 1 January, as are the credit point value and, where relevant, the havra’a rate. This page will be updated as soon as the January 2027 circulars from Bituach Leumi and the Tax Authority are out.