Salary components: what makes up your gross pay?
The salary shown on your payslip is not made up only of the amount you agreed with your employer. It includes base pay, overtime, expense reimbursements, bonuses, and various benefits. On this page, we will understand which components affect your net pay, pension, and social rights, and what you should check to make sure you receive all the salary and conditions you are entitled to.
- Reading time
- 5 minutes
- Last updated
When we talk about salary, most of us think about the figure agreed in the employment contract. On the payslip, however, that figure is divided into different components: some increase your pensionA monthly payment made to a person after retirement from work in order to help maintain their standard of living., some are merely expense reimbursements, and some are benefits that do not enter your bank account but still "cost" you tax.
Base salary: the engine of the payslip
Base salary is the basic amount you receive for your work. It is the most important component on the payslip because it forms the "determining salary" used to calculate your social rights:
- Contributions to pension and severance pay.
- The value of vacation and sick days.
- Dmei Havra'a (דמי הבראה; recuperation pay).