When a Fixed Monthly Salary Still Requires Overtime Pay

A Hebrew employment-law guide explains that a fixed monthly, or “global,” salary does not automatically protect employers from overtime claims. Published June 18, 2026 at 08:00, the article says many workers do not realize they may still be entitled to extra pay beyond an agreed monthly amount. It says the arrangement can be lawful and convenient, but only if it is properly written and actually matches the hours worked.

According to the guide, global salary must be explicitly agreed in the employment contract, and the number of overtime hours included in the fixed payment must reflect reality. If those conditions are not met, the arrangement may be treated as fake, leaving the employer exposed to significant claims. The article also warns that a lump-sum wage must not appear in the payslip as one combined figure. Under the Wage Protection Law, the payslip should separate base salary from the global overtime component.

If an employee works more overtime hours than the contract covers, the worker is entitled to additional pay. The first two overtime hours in a day are paid at 125 percent of the regular hourly rate, and the third hour and beyond at 150 percent. Employers who do not track actual hours or update the agreement when work patterns change may face retroactive wage claims.

The article cites an example from the Tel Aviv Regional Labor Court, where the employer failed to prove the employee’s hours. In that case, the court applied the presumption from precedent and awarded payment for 60 overtime hours per month, totaling 50,175 shekels in overtime compensation, in case number סע"ש 12352-06-22. The guide also stresses that employers must keep attendance records for every employee, including those on global salary, because without documentation the burden of proof shifts to the employer in a dispute.