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
| Overtime hour | Payment rate |
|---|---|
| First two hours of the day | 125% of wage |
| Third hour onward | 150% of wage |
| Work on the weekly rest day | 150% and above, plus supplement |
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.
Two details that catch people out
The 125% tier resets daily, not weekly. Two hours at 125% are available on each working day, with subsequent hours that same day at 150%. It is not a weekly allowance of two hours.
The rest-day premium is in addition to compensatory rest, not instead of it. Work on the weekly rest day carries both.
If overtime has not been paid
Records matter more than recollection. Keep your own log of hours, retain payslips, and raise the matter in writing with the employer first, a written record is useful later.
Where that does not resolve it, complaints can be brought to the Ministry of Labour enforcement administration, and claims filed in the Regional Labour Court. Claims are subject to a limitation period, so delay carries a real cost.
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.
The information on this page is for educational purposes. Please consult a professional before making financial decisions.
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