Wage Protection Law: the sections this site discusses
The short answer
The Wage Protection Law, 5718-1958 prohibits an employer from combining regular wages with overtime pay into one “global wage” (section 5). It adds compensation for late payment of wages to wages paid late: the higher of 5% for the first week after the payment date and 10% for each week or part of a week after that, or linkage differentials and 20% for each month (section 17). A claim for this compensation becomes time-barred within 60 days of receiving the wages, and no later than one year (section 17A). The Law also requires a detailed wage ledger and payslip for every employee (section 24).
In practice, almost every wage dispute starts with checking your rights from the payslip. That is where a prohibited “global wage”, deductions with no basis and unpaid overtime pay come to light.
What the law provides
Section 5 of the Wage Protection Law prohibits an employer from setting a “global wage” for an employee that combines, in one amount, the regular wage together with overtime pay, payment for work during the weekly rest or vacation pay. The section applies to an employee covered by the Hours of Work and Rest Law, 5711-1951 (חוק שעות עבודה ומנוחה, התשי״א-1951). In such a case, the Labor Court treats the amount set as a regular wage only, and the employee is entitled to separate payment for every overtime hour or hour of Sabbath work they did, on top of the agreed amount. A limited exception exists where an alternative pay arrangement for overtime was set in a collective agreement approved for this purpose.
Late payment of wages (“delayed wages”) gives the employee a right to special compensation under section 17. The employer must pay the higher of two alternatives: an addition of 5% of the delayed wages for the first week and 10% for each week or part of a week after that, or linkage differentials for the period of delay plus 20% on the delayed wages and the linkage differentials for each month (and proportionally for part of a month). Because the compensation is high, section 17A sets a short limitation period for it: the claim must be filed within 60 days of the day the delayed wages were received (this can be extended to 90 days with the court’s approval), and in any case no later than one year. For repeated delays (three delays within 12 months, within a 3-year period), the limitation period is extended to three years.
Section 24 of the Law requires an employer to keep a wage ledger for every employee and to give them a detailed payslip for every pay period. The ledger and the payslip must reflect the working hours, the wage components, the deductions (income tax, National Insurance (Bituach Leumi), pension) and the vacation and sick days used and remaining. An employer that does not give a payslip by the determining day, or gives an incomplete one, exposes itself to a claim in the Labor Court. When the breach was done knowingly, the court may award exemplary damages, without proof of damage, for each payslip (section 26A(b)).
The burden of proof in an overtime claim
Section 26B of the Law makes it easier for an employee who claims overtime pay: if the employer did not keep attendance records as required, the burden of proof regarding the number of overtime hours shifts to the employer, up to a ceiling of 15 hours a week or 60 hours a month. Above this ceiling, the employee must prove their claim in the usual way. The employee needs to present their version of the working hours, and an employer that did not present attendance records will have to prove that the employee was not at the disposal of the work during the disputed hours. You can calculate overtime pay for your own dates and hours in the calculator.
A numerical example
Suppose an employee earns NIS 9,000 a month, and the employer paid the salary 10 days late. Under section 17, the special compensation is the higher of 5% + 10% of the wages (the first week and a second week that has begun = 15% of NIS 9,000 = NIS 1,350), or linkage to the index plus 20%. Assuming the linkage differentials are negligible, the compensation will be NIS 1,350 in addition to the wages themselves, provided that the claim is filed within 60 days (section 17A). The court may reduce or cancel the compensation if the delay resulted from an honest mistake, from a circumstance beyond the employer’s control, or from a genuine dispute over the debt itself, provided that the undisputed amount was paid on time (section 18).
To calculate compensation for late payment of wages for your own dates: late wages compensation calculator.
Before a claim for late payment of wages: checklist
- Record the payment date and the day the wages were actually paid: the 60 days for filing a claim for the late-payment compensation are counted from the day you received the wages. The short deadline applies only to the late-payment compensation, not to the wages themselves (section 17A(a)).
- Calculate the two alternatives in section 17(a): 5% for the first week after the payment date and 10% for each week or part of a week after it, compared with linkage differentials plus 20% for each month. The compensation is the higher of the two.
- File the claim in the Regional Labor Court within 60 days of receiving the wages (the court may extend this to 90 days), and no later than one year from the day the wages became delayed, whichever is earlier.
- If the wages were paid late three times within 12 consecutive months, check the extended limitation period of three years (section 17A(b)).
- Attach the payslips: the employer must give a payslip no later than the determining day (section 24(c)).
| Topic | Section | The main rule |
|---|---|---|
| Global wage | Section 5 | Combining regular wages with overtime in one amount is void; the wage counts as a regular wage only |
| Late payment of wages | Section 17 | The higher of 5% for the first week and 10% for each further week, or linkage differentials + 20% a month |
| Limitation period for late payment | Section 17A | 60 days (up to 90 with the court’s approval); one year at most; 3 years for repeated delays |
| Wage ledger and payslip | Section 24 | Duty to keep a wage ledger and give every employee a detailed payslip |
| Burden of proof for overtime | Section 26B | Shifts to an employer that did not keep attendance records, up to 15 hours/week or 60 hours/month |
For more on the rights that arise from this Law, see the guides Overtime: calculation, rights and common traps, Late salary in Israel: when and how to sue the employer, Payslip: what must appear and how to read it and Proceedings in the Labor Court, and the employment law content hub. See also: Limitation of wage and employment claims: what becomes time-barred and when.
The sections the site discusses
This page brings together 5 sections of the Wage Protection Law that are discussed in 5 guides on this site. The title of each section is the marginal note of the consolidated version of the Law (unofficial translation), not a heading we wrote. For the legal content itself, see the relevant guide or the original text of the Law. The last column links to the guides on this site that discuss that section.
| Section | Marginal note (section heading) | Discussed in the guides |
|---|---|---|
| Section 5 | Prohibition of a global wage | Overtime: calculation, rights and common traps |
| Section 17 | Compensation for late payment of wages | Proceedings in the Labor Court: a guide · Late salary in Israel: when and how to sue the employer |
| Section 17A | Limitation period | Proceedings in the Labor Court: a guide · Late salary in Israel: when and how to sue the employer · Payslip: what must appear and how to read it |
| Section 24 | Wage ledger and payslip | Minimum wage 2026: how much, for whom and how to claim |
| Section 26B | Burden of proof | Overtime: calculation, rights and common traps |
The original text of the law
- Wage Protection Law, 5718-1958: text of the Law
- Wage Protection Law: consolidated version on Nevo (Israeli legal database)
FAQ
What happens if my employer included in my contract a “global wage” that also covers overtime?
Under section 5, such an agreement is void insofar as it concerns overtime or work during the weekly rest. The court will treat the amount set as a regular wage only, and you will be entitled to separate payment for every overtime hour you worked, on top of the amount already paid.
How long do I have to file a claim for late payment of wages?
Under section 17A, the claim must be filed within 60 days of the day the delayed wages were received (this can be extended to 90 days with the court’s consent), and in any case no later than one year. For repeated delays, the limitation period is extended to three years.
My employer doesn’t give me a payslip. What can I do?
Section 24 of the Law requires every employer to give the employee a detailed payslip for every pay period, and to keep a wage ledger setting out the hours, the wage components and the deductions. An employer that does not meet this duty exposes itself to a claim in the Labor Court. If the breach was done knowingly, the court may award exemplary damages of up to NIS 5,000 for each payslip, without proof of damage. This amount is updated on 1 January every year according to the index. For special reasons, the court may award a different amount (section 26A(b)).
I’m claiming overtime, but the employer didn’t keep a time clock. How do I prove how many hours I worked?
Section 26B helps you: if the employer did not keep attendance records as required, the burden of proof (up to 15 hours a week or 60 hours a month) shifts to the employer. You need to present your version of the working hours, and the employer will have to prove that you were not at the disposal of the work during those hours.
When does a salary count as “delayed wages” (late payment of wages)?
A monthly salary must be paid at the end of the month for which it is paid (section 9). Wages not paid by the “determining day” (the ninth day after the payment date) are “delayed wages” (section 1), and compensation for late payment of wages is added to them (section 17). So a September salary not paid by 9 October counts as delayed wages, and the compensation is calculated from the payment date, that is, from the end of September. For wages paid by the hour, day, week or quantity of output, section 10 sets a different payment date.
A question about the Wage Protection Law?
Yaron Meiri, Adv. & CPA — lawyer and CPA, an independent office in Kiryat Ono. Member of the Israel Bar Association and of the Institute of Certified Public Accountants in Israel.
This page collects the references to legislation on the site. The section headings are the marginal notes as worded in the consolidated text of the law, and are not our interpretation. The binding text is the one published in Sefer HaHukim (the official gazette of statutes). The content here is general information and is not legal advice. Translated: · Hebrew version updated: .
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