How Overtime is Calculated
125% and 150% — 125% and 150% refer to overtime pay rates.
Under Israeli law, the first 2 overtime hours on the same day are paid at a minimum of 125% of the regular hourly rate, and from the 3rd overtime hour onward — at least 150%.
Important Note
Important: these percentages apply only to the hours that exceed the normal working day or weekly norm, not to the entire shift.
Calculation Example
If your regular rate is ₪50 per hour, then:
125% = 125% = ₪62.5 per hour
150% = 150% = ₪75 per hour
If your normal day is 8 hours and you worked 11 hours: 8 hours at regular rate, 2 hours at 125%, 1 hour at 150%.
Payslip and Overtime
That is why overtime must appear as separate line items on your payslip. If your employer pays the same rate for all hours without separating overtime, check the calculation carefully.
Summary
125% and 150% are the official overtime pay rates. The first 2 overtime hours per day are paid at 125%, and from the 3rd hour onward at 150%.