Free calculator · Updated for 2026

Employer Cost Calculator

Instant total monthly cost-of-employment calculation using 2026 Israeli tables — gross salary plus all employer-side contributions.

  • Free, forever
  • Result in under a second
  • Your data is never stored

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Gross salary, employee tenure, and a few toggles — get the full cost-of-employment.

Affects convalescence pay (5 days in year 1, up to 10 days at 20+ years).
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2026 statutory minimum: 6.5%. Provident portion only; the 8.33% severance is separate.

Numbers are processed on your device only. Nothing is sent to the server.

Common questions

What does the employer-cost calculator include?

Gross salary + employer National Insurance (3.55% up to the average-wage threshold, 7.6% above) + employer pension (6.5% provident) + severance accrual (8.33%) + optional study fund (7.5%) + monthly convalescence pay scaled by tenure.

What is the 8.33% severance accrual and how does it work?

Under §14 of the Severance Pay Law, an employer who deposits 1/12 of the employee's salary (8.33%) monthly into a designated pension fund is exempt from paying further severance on termination. This is the "§14 exemption" arrangement and is the standard today.

What is convalescence pay and why is it shown monthly?

Convalescence pay (₪418/day in 2026 private sector) is paid annually (usually June-September) but accrues monthly. We show the monthly equivalent so you see the real economic cost per month. Days: 5 in year 1, growing to 10 at 20+ years of tenure.

Is study fund mandatory?

No — it is voluntary under personal or collective agreements. Very common in white-collar roles (high-tech, finance, consulting): 2.5% employee + 7.5% employer, capped at a ₪15,712 monthly salary base.

How does this differ from the gross-to-net calculator?

The net calculator (employee view) starts from gross and subtracts deductions. The employer-cost calculator starts from the same gross and adds employer-side contributions — the total cost to the company. Two ends of the same payslip.