The calculator
How it is worked out
On an ordinary working day, hours up to the regular-hours threshold are paid at 100%. The first two overtime hours in a day are paid at no less than 125% of the regular wage, and each hour after them at no less than 150% (section 16 of the Hours of Work and Rest Law).
Work during the weekly rest is paid at no less than 150% of the regular wage (section 17). The law sets no separate rate for overtime worked on the rest day. The calculator adds the two premiums together, so it shows 175% for the first two overtime hours and 200% after them. Check that this is what the agreement covering the employee says.
On a holiday the calculator uses the same rates as on the rest day. The sections cited here deal with the weekly rest only, so check the rate for holiday work against what applies to the employee.
When overtime starts
Under the law a working day may not exceed eight hours (section 2(a)), and a night-work day seven hours (section 2(b)). Hours beyond those limits are overtime (section 1). A collective agreement or an extension order that applies to the employer may set a shorter working week or a different working day, and then overtime starts earlier; the law does not take away such a right (section 35).
That is why the threshold can be set in the calculator. The default is 8 hours; for a night shift, enter 7.
In the product it happens by itself
In the product, the monthly hours report separates regular hours from hours at 125%, 150%, 175% and 200% on its own, from the actual punches on the time clock and the rest days and holidays your business observes. Nobody has to work it out shift by shift. You can see it on your own team with a free trial.
Please note
The calculator explains the rules in general terms and is not legal advice. A collective agreement, an extension order or a personal contract may say otherwise. The other rules — rest between shifts, weekly rest and night shifts — are on the page about the Hours of Work and Rest Law.
Sources
Jurisdiction: Israel. Source: the Hours of Work and Rest Law, 5711-1951, in the Knesset’s national legislation database, with the text in Reshumot (Sefer HaHukim 76, p. 204). The other rules, each with a link to its section, are on the page about the Hours of Work and Rest Law. This page was updated on 6 October 2026.
No less than 125% of the regular wage for the first two overtime hours in a day, and no less than 150% for each hour after them (section 16).
No. It calculates gross pay for the shift from the rate and the hours, before tax and deductions.
Because it depends on the business's working week and the agreements that apply to it, and a night-work day is shorter. The calculator works from the threshold you enter.
The law sets no less than 150% for work during the weekly rest (section 17). For overtime on that day the calculator adds the overtime premium, reaching 175% and then 200%. The law does not set that explicitly, so check what applies to you.