Overtime Pay

Worked beyond the standard working day? You are owed additional pay, not merely your regular rate. The law sets precise rates, and many employees do not know how to check whether they are receiving them.

Disclosure: Educational information only. Rules are updated — verify with the Ministry of Labour. Any action you take is your own responsibility.

What counts as overtime

Overtime means hours worked beyond the standard working day, generally eight to nine hours depending on the weekly pattern, or beyond the weekly quota. Work in those hours entitles you to a supplement above your regular wage.

The payment rates

In other words, the first two additional hours are paid at 1.25 times the hourly wage, and anything beyond that at 1.5 times.

How to calculate

Assume an hourly wage of 50 ₪. The first two overtime hours: 50 × 1.25 = 62.5 ₪ per hour. The third hour and beyond: 50 × 1.5 = 75 ₪ per hour.

The calculation is based on the regular hourly wage. See minimum wage for the legal floor.

Important points

Overtime generally requires authorisation — usually the employer's instruction or consent.

Some employees are not entitled. In management roles, or positions requiring a special degree of personal trust, the law may not apply.

The payslip must itemise it. Overtime should appear separately rather than being folded into a single figure.

Common mistakes

1. A "global" payment that supposedly covers everything. Global overtime pay must genuinely reflect the hours actually worked.

2. Not checking the payslip to confirm overtime is itemised and paid correctly.

3. Confusing a rest day with a regular day — the rest day rate is higher.

Summary

Overtime is a right, and the payment for it is defined in law. Check that your payslip itemises it correctly at the proper rates. See more in employee rights.