Question 1

What salary deductions are permitted under Israeli law?

Accepted Answer

Under the Wage Protection Law, an employer may only deduct from salary: (1) amounts required by law — income tax, NII contributions, health tax; (2) pension and study fund contributions; (3) amounts the employee authorised in writing — union dues, advance repayment; (4) amounts owing to the employer for specific, documented reasons permitted by law. General deductions for 'damages' or 'losses' without written authorisation are prohibited.

Question 2

Can an employer deduct from salary for property damage or mistakes at work?

Accepted Answer

No. An employer cannot unilaterally deduct salary for alleged property damage, customer complaints, cash shortages, or operational errors — even if the employee was responsible. Such deductions require the employee's written consent or a court order. Unauthorised deductions are a serious breach of the Wage Protection Law.

Question 3

Can an employer deduct the advance notice period from the employee's final salary?

Accepted Answer

If an employee resigns without giving proper advance notice, the employer may deduct an amount equal to the salary for the notice period not worked — but only up to the statutory maximum. The deduction must correspond to the actual notice period shortfall and cannot exceed what the employee would have earned during that period.

Question 4

My employer deducted money from my salary — what can I do?

Accepted Answer

First, request a written explanation of the deduction. If the deduction was not permitted by law or by your written consent, you can claim the amount back through the Labor Tribunal. Illegal salary deductions can also attract withholding penalties under the Wage Protection Law.

Question 5

Can an employer withhold the final salary after dismissal?

Accepted Answer

No. The final salary, together with all accrued entitlements — outstanding vacation, recuperation pay, advance notice — must be paid within 9 days of the end of the month in which employment ended. Withholding the final salary is a criminal offence under the Wage Protection Law, in addition to giving rise to a civil claim.

Question 6

What is the maximum amount an employer can deduct from a single salary payment?

Accepted Answer

The Wage Protection Law limits total deductions (other than statutory deductions and pension contributions) to 25% of the gross salary in any pay period. Any amount exceeding this limit — even if otherwise authorised — cannot be deducted in a single payment.

Salary Deductions in Israel — What Is Permitted

The Wage Protection Law — Deduction Rules

Frequently Asked Questions

Illegal Deduction from Your Salary?