Minimum Wage 1.4.2026 Delta Calculator
The Israeli minimum wage rose on 1.4.2026 to ₪35.40/hr (₪6,443.85 for a 182-hour full-time month). Employers who kept paying the old rate owe retroactive back-pay and are exposed to criminal-offence sanctions under the Minimum Wage Law. Instantly measure the debt accrued.
- Free, no signup
- Result in under a second
- Your data is not stored
How to bring your payroll into compliance
-
Audit April 2026 payslips and onwards
Open the April 2026 payroll (paid in early May). Verify that every employee row shows an hourly rate ≥ ₪35.40 and a full-time monthly wage (182 hours) ≥ ₪6,443.85. For youth: verify the rate matches the age bracket (26.07 / 27.94 / 30.92).
-
Update the payroll system minimum-wage table
In your payroll system (Malam, Hilan, Shkulit, Polus, Michpal, etc.), update the "Monthly minimum wage" field to ₪6,443.85 and "Hourly minimum wage" to ₪35.40 as of 1.4.2026. Update the youth-wage brackets as well. Save the change before processing April payroll.
-
Compute retroactive differentials for underpaid employees
For each employee who received less than the new minimum in April 2026 or later — calculate the differential (actual paid vs required), add interest + linkage per the Interest and Linkage Ruling Law, and issue a "Minimum Wage differential" line on the next payslip. Document the calculation for a possible audit by the enforcement unit.
-
Review contracts, collective agreements, and subcontracting docs
Go through employment agreements, service contractor agreements (cleaning / security / catering), and purchase orders. Update pricing clauses and payment terms linked to the old minimum wage. As a service client — verify that your subcontractor pays the new minimum wage; your liability is joint under the Increased Enforcement Law.
-
Refresh employee-cost calculations, pension, severance, and 2026 budget
The employer cost of a minimum-wage employee grew by ~₪196 gross per month + social costs (~7.5% employer pension, ~6% severance, ~3.55% employer social security). Update wage forecasts, the annual budget, customer pricing (especially in service-heavy industries), and pension contributions on the new wage slice. Also model the impact on above-minimum wages to preserve internal pay ratios.
Common questions
When did the new minimum wage (₪6,443.85) take effect?
The update took effect on 1 April 2026. The April 2026 payslip (paid in early May) is the first that must reflect the new amount. If you underpaid on April 2026 or later, you must top up the differential plus interest and linkage.
Does the law apply to part-time or commission-only employees?
Yes. For part-time employment the minimum wage is calculated pro-rata to actual hours, but the hourly rate does not drop below ₪35.40. For commission-only employees, the employer must top up to minimum wage even in a month with zero commissions. There is no "probation period" exempt from minimum wage.
What is the youth minimum wage in 2026?
From 1.4.2026: under 16 — ₪26.07/hr (70% of adult), 16-17 — ₪27.94/hr (75%), 17-18 — ₪30.92/hr (83%). Minors aged 14-15 may be employed only during official school vacations. Travel reimbursement (up to ₪22.60/day) is paid additionally and is NOT absorbed into the wage.
What happens to an employer who does not pay minimum wage?
Non-payment is a criminal offence under the Minimum Wage Law, 1987. Sanctions include: criminal fines, administrative monetary sanctions, no-proof-of-damage compensation in the Labour Court, personal criminal indictment of the responsible officer, and a claim for wage differentials, pension and severance-pay differentials plus interest and linkage. The Enforcement Unit at the Ministry of Labour runs active audits.
Does travel reimbursement, overtime, and convalescence pay count toward minimum wage?
No. Minimum wage is calculated only on the base wage for a regular working hour. NOT included: travel reimbursement, overtime bonuses (125% / 150%), Sabbath / holiday premiums, convalescence pay, clothing allowance, premiums, and bonuses. All of these must be paid IN ADDITION to ₪35.40/hr or ₪6,443.85/month.