Overtime: how 125% and 150% are calculated, with a calculator

Service page: A claim against an employer for wages, pension and overtime.

Overtime for an hourly employee and a monthly employee: how to calculate it

Take the regular hourly wage and multiply it according to the table. The “regular wage” includes all the increments the employer pays, not only the base wage (section 18).

• An hourly employee: the regular hourly wage is the hourly rate, plus the increments the employer pays (section 18).
• A monthly-salaried employee in a full-time position: divide the regular monthly wage by 182. This is the basis set by the Extension Order on Shortening the Work Week (צו ההרחבה בדבר קיצור שבוע העבודה) (section 2.8 of the order, in force from 1 April 2018).
• When an hour is “overtime”: an hour beyond the working day or beyond the work week (section 1). Under the Law, a working day is up to 8 hours. It is up to 7 hours in night work, on the day before the weekly rest, and on the day before a holiday on which there is no work (section 2). The work week in the Law is 45 hours (section 3). The extension order shortened it to 42 hours without a cut in wages.

The rates are a floor: a collective agreement, an extension order or a contract can set more. Work on a holiday: under section 18A(b) of the Law and Administration Ordinance, 5708-1948 (פקודת סדרי השלטון והמשפט, התש״ח-1948), the provisions on the weekly rest apply to the Jewish holidays that are the official days of rest. So pay of at least 150% is paid for them (section 17 of the Law). For a non-Jewish employee, the provisions apply to the Jewish holidays or to the holidays of their community, according to what is customary for them (Holiday pay: calculation and entitlement). The Law does not apply to the types of employees in section 30(a). Examples are employees in management roles or in roles that require a special degree of personal trust.

A hypothetical example: a monthly-salaried employee whose regular wage (including the increments, section 18) is NIS 9,100 a month. The pay rates in the calculation are those in sections 16(a) and 17(a)(1) of the Hours of Work and Rest Law, as of 4 October 2026.

1. Regular hourly wage: 9,100 ÷ 182 = NIS 50.
2. A day with 3 overtime hours: 2 × 50 × 125% = NIS 125, plus 1 × 50 × 150% = NIS 75. Together: NIS 200 for the three hours (section 16(a)).
3. 4 hours of work during the weekly rest: 4 × 50 × 150% = NIS 300 (section 17(a)(1)).
4. In a month with 4 such days and once 4 hours during the weekly rest: 4 × 200 + 300 = NIS 1,100 in overtime pay. On the payslip it should appear as a separate payment, with the number of hours and the amount (item 5(3) of the Schedule to the Wage Protection Law; see a sample payslip).

How many overtime hours may you work in a day and in a week?

Employment in overtime is forbidden, unless it is allowed under section 10 or under a permit of the Minister of Labor under section 11 (section 6). The general permit for the economy published on 19 March 2018 provides as follows (in certain sectors, such as transport and medical institutions, other general permits apply):

The restriction is on the employer, not on the right to be paid. For every overtime hour you worked, pay is due under section 16. Employing workers in overtime without a permit is a breach. The Ministry of Labor may impose a monetary sanction for it, which in 2026 is NIS 42,100 (Part C of the Second Schedule to the Increased Enforcement of Labor Laws Law, 5772-2011 (חוק להגברת האכיפה של דיני העבודה, התשע״ב-2011)). Employment that does not follow the conditions of the permit is a breach listed in Part B of the Schedule. In 2026 the sanction for it is NIS 24,060.

In an emergency, the Minister of Labor may give a broader general permit. It remains in force only as long as the decision on the state of emergency is in force, or until an earlier date set in it (sections 11(1a) and 14(c) of the Hours of Work and Rest Law). In such a period, check whether a temporary permit was published.

Work on Shabbat and during the weekly rest: how much is paid?

• The weekly rest: at least 36 consecutive hours a week. For a Jewish employee, it includes Saturday (Shabbat); for a non-Jewish employee, Saturday, Sunday or Friday, according to what is customary for them (section 7).
• The payment: for each hour during the weekly rest, at least 150% of the regular wage is paid, from the first hour (section 17(a)(1)). For a monthly-salaried employee, the employer may give, instead of the pay, rest of at least an hour and a half for each hour (section 17(b)).
• Friday: on the day before the weekly rest (for a Jewish employee, usually Friday), the working day under the Law is up to 7 hours (section 2(b)). So in a six-day work week, an hour beyond that is an overtime hour. The exception is when regulations, or a collective agreement approved by the minister, set something else (sections 4–5). In a five-day week, Friday is usually a day off. The rule for work on it is set by the arrangement that applies at the workplace.
• Work on Shabbat requires a permit: employing an employee during the weekly rest is forbidden, unless it was allowed by a permit of the Minister of Labor (section 9). The pay is due for every hour you actually worked.
• Holidays: pay for work on a holiday and holiday pay: Holiday pay and work on holidays.

Global overtime: when is it legal?

Many people discover that the payslip says “global overtime” or “wage including overtime”. Under section 5 of the Wage Protection Law, 5718-1958, a wage set as including overtime or work during the weekly rest is treated as regular wages only. The exception is a collective agreement approved by the Minister of Labor that provides otherwise. What this means: the overtime pay is calculated on that wage and paid in addition. When the payslip shows a separate component of global overtime, check whether it covers the pay for the hours you actually worked:

1. The overtime pay is set and paid as a separate component, and is not included in the regular wage. A wage set as including overtime is treated as regular wages only, unless an approved collective agreement provides otherwise (section 5 of the Wage Protection Law)
2. The actual amount covers all the pay due for the hours you worked

If you worked 50 overtime hours in a month and the “global” amount covers only 20, the employer owes the difference. The burden of proving that the global amount is enough usually lies on the employer. When the overtime pay was not itemized on the payslip, there is a presumption that the wage paid is regular wages only, unless the employer proves otherwise (section 26B(c) of the Wage Protection Law). When the employer did not present attendance records, it must prove that you were not available for work during the disputed hours (section 26B(a), up to the ceiling in section 26B(b)).

How do you prove that you worked overtime?

Documentation is everything, but the Labor Court works with estimates even without an exact record for every day. What to keep:

• Time clock records (if there is one)
• Emails sent or received late in the day
• WhatsApp messages from the manager at night or at the weekend
• VPN access, system logins, files saved at unreasonable hours

Testimony of colleagues who worked with you is also valuable. Judges understand that not everyone kept attendance sheets: they look for an overall picture.

The limitation period: do not wait

Overtime claims become time-barred after 7 years. But the longer you wait, the harder it is to prove the hours. Colleagues move on, documents are deleted, memory fades. File a claim close to the time you leave the workplace.

Is it worth going to the Labor Court?

The Labor Court is relatively accessible: representation by a lawyer is not mandatory. A claim of up to NIS 40,700 is heard by way of an “expedited proceeding” (as of 1 January 2026, not including late-wage compensation, linkage differentials and interest). In this proceeding the court is not bound by the rules of procedure (section 31 of the Labor Court Law, 5729-1969 (חוק בית הדין לעבודה, התשכ״ט-1969); regulation 1 of the Labor Court Regulations (Determination of the Claim Amount in Expedited Proceedings), 5750-1990 (תקנות בית הדין לעבודה (קביעת סכום התביעה בדיון מהיר), התש״ן-1990)). Basic documentation of the hours is important even when the burden of proof shifts to the employer.

Before going to court: send a formal letter of demand with a detailed calculation, and give a reasonable deadline for payment. See also: a wage claim against an employer.

“Self-employed” workers: it does not always stop you

A self-employed person is not entitled to overtime pay. But if your classification as “self-employed” was fictitious, and you are in fact an employee, you have a cause of action for overtime too. The court looks at the substance of the relationship, not at the title. The test: who sets your hours, whether you work exclusively, and who provides the tools.

The sections that decide your case

Three sections do most of the work in an overtime claim, and all of them concern the calculation and the evidence, not the definitions.

Section 18: what the “regular wage” is

The pay under sections 16–17 of the Hours of Work and Rest Law, 5711-1951, is calculated from the “regular wage”. Section 18 defines it in one line: “‘regular wage’ includes all the increments that an employer pays to their employee”. This is the biggest financial gap in these cases. An employee who calculates by the base wage only, while the payslip includes fixed increments, quietly gives up percentages of every overtime hour. Go through the payslip component by component and check what is paid on a regular basis.

Section 5 of the Wage Protection Law: the “global wage” and its trap

Section 5 of the Wage Protection Law, 5718-1958, deals with an employee to whom the Hours of Work and Rest Law applies. If that employee was set a wage that includes payment for overtime or for work during the weekly rest, “the wage set is treated as regular wages only”. The exception is a collective agreement approved for this purpose by the minister that provides otherwise. In other words: a “global” wage does not make the overtime pay unnecessary. The wage set is treated as regular wages, and the overtime pay is calculated on it and paid in addition.

Section 26B of the Wage Protection Law: who has to prove what

This is the section that changed the balance of power. Section 26B(a) deals with an employee’s claim for payment of wages, including overtime pay, where the working hours are disputed. In such a claim, the burden of proof is on the employer to show that the employee was not available for work. This applies if the employer did not present attendance records from a register of working hours that it must keep. Section 25 of the Hours of Work and Rest Law places the duty to keep the register. It requires “ongoing” recording of the hours actually worked.

Note the ceiling in section 26B(b): in a claim for overtime pay, the reversal of the burden applies only to up to 15 overtime hours a week or up to 60 overtime hours a month. Beyond the ceiling, the burden returns to you, and real evidence is needed there. Section 26B(c) adds an important presumption. It applies when the employer did not give a payslip, or gave a payslip that did not include the components of overtime pay, vacation, recuperation pay or travel. The presumption is that the employee was set an all-inclusive wage in breach of section 5. The wage paid is then treated as regular wages that do not include those components.

How to build the calculation, step by step

1. Set the hourly wage: the regular monthly wage (including fixed increments, under section 18) divided by 182 hours.
2. Map the actual hours by day, not by month. The pay is calculated daily: the first two overtime hours on the same day at 125%, and each hour after them at 150%.
3. Separate the hours during the weekly rest, for which the pay is 150% from the first hour (section 17(a)(1)). For working hours on a holiday, check the arrangement that applies.
4. Deduct what was actually paid as overtime pay, including a separate “global overtime” component on the payslip.
5. Build a month-by-month table with columns: date, actual hours, regular hours, overtime at 125%, overtime at 150%, amount due, amount paid, difference.
6. Add interest and linkage and check whether related components are relevant (pension contributions calculated too low, vacation redemption).

What to document, and what each item is worth

• The strongest evidence: attendance reports produced by the employer itself. Ask for them in writing even before filing a claim.
• Good evidence: a personal diary kept in real time, system logins, VPN logs, file save times.
• Supporting evidence: emails and messages late in the day, meeting invitations, colleagues’ testimony.
• Evidence of the wage: all the payslips for the period. They prove both the fixed components under section 18 and what was not included on the payslip, for the presumption in section 26B(c).

Common mistakes

• Calculating from the “base wage”. Section 18 includes “all the increments that an employer pays to their employee”: the difference adds up to thousands.
• Calculating by a monthly average. The pay is set by the day: 125% for the first two hours and 150% from the third hour onward on the same day.
• Assuming the global amount covers everything. Section 5 of the Wage Protection Law says the opposite.
• Claiming 80 overtime hours a month without evidence. The reversal of the burden in section 26B(b) is limited to 60 hours a month (or 15 a week).
• Giving up on the payslips. A payslip with missing components is not a disadvantage: it triggers the presumption in section 26B(c).
• Signing a “waiver” at the end of employment without first checking the overtime calculation.

When a lawyer is worth it, and when not

You can manage on your own: when there are orderly attendance reports, the period is short, the amount is within the expedited proceeding range, and the calculation is simple. A letter of demand with a calculation table resolves a large share of cases without proceedings.

It is worth involving a lawyer: when the employer claims you are in a management role or in a role requiring “a special degree of personal trust”. Section 30(a)(5) of the Hours of Work and Rest Law recognizes this exception, and section 30(b) refers it to the Labor Court for decision. Also when you were classified as “self-employed” and you claim an employment relationship. Also when the claim goes beyond the ceiling on the reversal of the burden, or when other components are added (recuperation pay, vacation, severance pay, pension contributions). And when you were dismissed shortly after you raised the issue.

FAQ

By what number do you divide the monthly salary to get the hourly wage?

By 182. Since April 2018, the hourly wage value of a monthly-salaried employee is calculated on the basis of 182 hours a month. This follows the Extension Order on Shortening the Work Week to 42 hours a week. The wage you divide is the “regular wage” under section 18, including fixed increments, not only the base wage.

My employer didn’t keep attendance records: is that good or bad for me?

Good for you. Section 26B(a) of the Wage Protection Law shifts the burden of proof to the employer when it did not present attendance records. These are records from the register of working hours it must keep under section 25 of the Hours of Work and Rest Law. But note the ceiling in section 26B(b): the reversal of the burden applies only up to 15 overtime hours a week or 60 a month.

I have a “global wage”: am I still entitled to overtime pay?

Very possibly. Under section 5 of the Wage Protection Law, when a wage was set that includes payment for overtime, “the wage set is treated as regular wages only”. The exception is a collective agreement approved for this purpose by the minister that provides otherwise. In other words, the wage set is treated as regular wages only, and the overtime pay is paid in addition to it.

Should I go to the Labor Court, and how much time do I have?

Representation by a lawyer is not mandatory in the Labor Court. A claim of up to NIS 40,700 (as of 1 January 2026) is heard by way of an “expedited proceeding”. In it, the court is not bound by the rules of procedure (section 31 of the Labor Court Law). Before you go, send a letter of demand with a detailed calculation table. A claim for wages becomes time-barred within seven years (section 5 of the Prescription Law, 5718-1958 (חוק ההתיישנות, התשי״ח-1958)). But it is better to act early: evidence and logs disappear.

How many overtime hours may you work in a week?

Under the 2018 general permit for the economy, overtime is up to 16 hours a week, and the working day including overtime is up to 12 hours. In certain sectors and in an emergency, other permits apply. Pay is due for every overtime hour you worked, even beyond the limit (section 16).

How much is paid for work on Shabbat?

At least 150% of the regular wage for each hour during the weekly rest, from the first hour (section 17(a)(1) of the Hours of Work and Rest Law). For a Jewish employee, the weekly rest includes Saturday (Shabbat) (section 7).

Is an hourly employee entitled to overtime pay?

Yes. The Law applies to every employee, except the types in section 30(a), such as management roles or roles of special personal trust. The regular hourly wage includes the increments the employer pays (section 18).

Is there overtime on Friday?

In a six-day work week, yes. On the day before the weekly rest, the working day under the Law is up to 7 hours (section 2(b)). So an hour beyond that is an overtime hour, unless something else was set in regulations or in an approved collective agreement (sections 4–5). In a five-day week, the answer depends on the arrangement that applies at the workplace.