Gross-to-Net Salary Calculator

Gross is the salary before deductions. Net is the amount remaining after deductions for income tax, National Insurance and health insurance, and employee contributions to pension and a study fund—and it is the estimated amount that will be deposited into the bank account. This is also the structure on which the calculator is based.

Because not all of the gross salary is transferred to the account. Part of it may be deducted for income tax, National Insurance, and health insurance, and an additional portion is deposited into your pension savings. The amount of deductions varies according to salary and personal details.

Tax credit points are a tax benefit that reduces the income tax you owe. The more tax credit points you have, the lower your income tax may be—down to zero. They cannot make the income tax in the calculator a negative amount.

You can check your payslip or use the Israel Tax Authority's tax credit points calculator.

This is a benefit you receive from the employer that is not paid to you in cash—for example, a company car. For the purposes of the calculator, the value of the benefit increases income subject to tax and insurance contributions, but is not added to the cash amount you receive.

Because part of your salary is transferred each month to pension savings instead of to your bank account. However, it is important to distinguish it from tax: the money deposited into pension savings remains savings in your name, and in relevant cases, the contribution may also provide a tax benefit.

If there is an employee contribution to a study fund, the employee's share is deducted from the salary and therefore reduces the amount deposited into the account that month. In the calculator, the contribution is calculated based on the salary defined as salary for contributions.

Income tax on salary is calculated progressively: different portions of income are taxed at different rates. Tax credit points and relevant tax benefits are then taken into account. Tax brackets and amounts are updated according to the tax year.

Employee insurance contributions are also calculated according to brackets. A reduced rate applies to the first portion of salary, and a higher rate applies to the portion above it, up to the prescribed ceiling.

The calculator provides an estimate based on the data you entered. Your actual payslip may include additional salary components, tax coordination, tax benefits, different salary bases for contributions, ceilings, and personal arrangements that the calculator does not recognize. This is also the caveat established in the original specification.

Not in the net pay calculation. Net pay is the money remaining from your salary after employee deductions.