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Commentary

1.3.2 Wage payment delay

Israel

'Wage delay' is when an employer does not pay an employee on a timely basis, as discussed above. Compensation for wage delay is controlled by the Wage Protection Law, 5718-1958.

For the purposes of calculating the compensation, only the employee's gross wages are taken into account, including:

  1. Ìý

    •ÌýÌýÌýÌý days and hours worked

  2. Ìý

    •ÌýÌýÌýÌý holiday pay, and

  3. Ìý

    •ÌýÌýÌýÌý overtime

Payments for reimbursement of expenses or other work-related entitlements (reimbursement of travel expenses, an allowance for daily expenses, convalescence fees, telephone expenses) The following are not included in the calculation for compensation.

The calculation for compensation will apply to the net wage if the employer can prove that he has deducted, for instance, income tax and social security from the gross salary and paid those amounts to the relevant authorities or organisations.

The court may, in certain circumstances, determine that the compensation will be calculated on net wages and not on gross wages, even if the employer has not yet paid the allowable deductions.

An employee who is entitled to claim compensation for delayed

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