Salary Deductions: What's Legal and How to Get Your Money Back

The Essence

Your employer is not permitted to deduct arbitrary amounts from your salary. The law permits only specific deductions, such as taxes, pension contributions, and payments to which you have given written consent. Any other deduction, such as a fine for lateness or damage to property (without a court ruling), is illegal.

Who Is Eligible?

Every salaried employee in Israel is protected by the Wage Protection Law. This right extends to everyone, regardless of employment type:

• Hourly wage earners.
• Employees on a monthly salary.
• Temporary and seasonal workers.
• Foreign workers and new immigrants.

It does not matter whether you work in high-tech, construction, or the service industry—the rules are the same for everyone.

Your Rights

The law clearly defines what can and cannot be deducted from your salary.

Permitted Deductions:

• Mandatory taxes: Income tax (Mas Hachnasa) and contributions to the National Insurance Institute (Bituah Leumi and Mas Briut).
• Pension contributions: Your share of the pension fund (Keren Pensia).
• Union dues: If you are a member of a trade union.
• Advance payment: Repayment of an advance previously paid to you by the employer.
• Court-ordered debts: For example, alimony or other collections through the Execution Office (Otsa'a la-Po'al).
• With your written consent: Any other deductions (e.g., for meals, transportation, a loan from the employer) are legal only if you have signed a separate document clearly authorizing that specific deduction.

Illegal Deductions (Examples):

• Fines for lateness or errors at work.
• The cost of damage to work equipment (if your culpability has not been proven in court).
• Payment for "training" if it was not agreed upon in writing in advance.
• Any other deductions to which you have not given explicit written consent.

Step-by-Step Guide

If you discover an unclear deduction on your payslip (Tlush Maskoret), follow this procedure:

1. Examine your payslip (Tlush Maskoret). Find the line item for the deduction in question. Ensure it is not a standard tax or pension contribution.
2. Contact your employer in writing. Write a formal letter (email is acceptable) to the HR or accounting department. Politely request clarification on the basis for this deduction. Example: "I request that you provide the legal basis for the deduction of [amount] under the title [name of deduction] from my salary for [month, year]."
3. Review your employment contract (Hoze Avoda). Reread your contract carefully. It is possible that you consented to certain deductions upon signing.
4. Demand a refund. If no explanation is provided or the basis for the deduction is illegal (e.g., your written consent is absent), send a second written demand. State clearly that the deduction is illegal under the Wage Protection Law and demand that the withheld amount be returned in your next salary payment.
5. File a complaint with the Ministry of Labor. If the employer ignores your demands, you have the right to file a formal complaint with the Labor Law Enforcement Division. This can be done online on the Ministry of Labor's website.
6. Petition the Labor Court (Beit Din le-Avoda). This is a final resort. You can file a lawsuit to recover illegally withheld funds.

Document Checklist

Gather all evidence. It will be necessary for any dispute with your employer.

• Payslips (Tlush Maskoret) for all disputed months.
• Employment contract (Hoze Avoda).
• All written correspondence with the employer regarding the deductions (email printouts, messages).
• Your Teudat Zehut.
• Any other documents where you gave (or did not give) consent for deductions.

Key Considerations

• Verbal consent is not valid. If your employer claims "we agreed," but does not have your signature on a document consenting to the deduction, it is illegal.
• Statute of limitations. A claim for unpaid wages can be filed with the Labor Court within 7 years. Do not delay.
• Always communicate in writing. Telephone conversations and verbal promises cannot be used as evidence. After every important conversation, send a follow-up email summarizing the discussion: "Further to our conversation today, I am writing to confirm that...".
• Do not sign without reading. Never sign documents in Hebrew that you do not understand. Demand a translation or time for consultation.

Contacts and Links

Official contacts and complaint forms can be found on government websites. We are not providing direct links as they are subject to change. Use the following search queries in Hebrew:

• Ministry of Labor website: משרד העבודה והרווחה
• National Insurance Institute website: המוסד לביטוח לאומי

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