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Billable Hours Calculator in Israel

Managing billable hours in Israel can be complex due to specific labor laws. Harvest simplifies this with its efficient tracking and invoicing tools.

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What should you charge per hour?

Most freelancers and consultants dramatically undercharge. This calculator accounts for what most people miss: non-billable time, taxes, and overhead.

$
Accounting for vacation, holidays, sick days
60%
Most freelancers can bill 50-70% of their time. The rest goes to admin, marketing, proposals, and learning.
$
Software, insurance, equipment, accounting, taxes beyond income tax, etc.
Your break-even rate $0
Recommended rate (+20% buffer) $0
Billable hours per week 0h
Equivalent daily rate $0

Start tracking your billable hours

Walk through the entire flow below. Start a timer, check your reports, and create a real invoice — all in three clicks.

Go ahead — start tracking!

One click and you're timing. Try it right here: start a timer, add an entry, edit the details. This is exactly how it feels in Harvest.

  • One-click timer from browser, desktop & mobile
  • Works inside Jira, Asana, Trello, GitHub & 50+ tools
  • Duration or start/end — your call
  • Day, week & calendar views to stay on top of it all
  • Friendly reminders so no hour gets left behind
Acme Corp
Website Redesign
Homepage layout revisions
1:24:09
Content Strategy
Blog calendar planning
1:30:00
SEO Audit
Technical audit report
0:45:00
Brand Guidelines
Color system documentation
2:15:00
Logo Concepts
Initial sketches round 1
1:00:00
Today's total 6:54:09

Understanding Billable Hours in Israel

Calculating billable hours in Israel requires an understanding of local labor laws, which stipulate a standard workweek of 42 hours. This was reduced from 43 hours as of April 2018. For a five-day workweek, the daily workday is 8.6 hours, while a six-day workweek comprises 8 hours per day, with Friday often being a half-day. It's crucial to account for overtime, which is compensated at 125% of the regular hourly wage for the first two hours and 150% for subsequent hours. Weekly overtime is capped at 16 hours, with a total of 58 working hours per week.

Additionally, businesses must ensure compliance with VAT regulations. The standard VAT rate in Israel is 18% as of January 2025, applicable to all "Osek Murshe" (Licensed Dealer) businesses. Understanding these regulations is essential for accurate billable hour calculations, ensuring compliance and optimizing revenue.

How to Calculate Overtime Pay in Israel

Overtime compensation in Israel is mandated by labor laws to ensure fair remuneration for extra work. For the first two hours of overtime in a day or week, employees receive 125% of their regular hourly wage, and 150% for any additional overtime. Employers must also adhere to the maximum overtime limits: 16 hours weekly and 60 hours monthly.

For instance, if an employee works a standard 42-hour week and then works an additional 10 hours beyond this, the first two hours are paid at 125% and the next eight at 150%. These regulations ensure that workers are fairly compensated for their time and effort, providing a framework for businesses to manage labor costs effectively.

Key Considerations for Freelancers in Israel

Freelancers in Israel face unique challenges and opportunities under local regulations. They must choose between registering as an "Osek Patur" (Exempt Dealer), suitable for those with annual revenue under 120,000 ILS, or an "Osek Murshe" (Licensed Dealer), which allows for higher revenue but involves VAT obligations. Freelancers must comply with tax and social security requirements on all income, and they can opt for "Invoice as an Employee" services to simplify compliance.

Beyond registration, freelancers must be vigilant about invoicing practices. Compliant electronic invoices need to include detailed service descriptions, tax IDs, and adhere to the 18% VAT rate. By navigating these requirements, freelancers can maintain compliance while maximizing their earnings.

Maximizing Revenue with Harvest

While Harvest does not directly handle Israeli labor law calculations, it offers robust tools for tracking billable hours and managing invoices, helping businesses and freelancers optimize their revenue streams. With features like one-click timers and detailed reporting, Harvest enables users to capture every billable minute accurately.

Integrating Harvest with platforms like QuickBooks and Xero streamlines financial management, while its time-tracking capabilities ensure that all hours worked are accounted for, reducing the risk of lost income. By leveraging Harvest's tools, businesses can ensure accurate invoicing and better financial oversight.

Harvest for Billable Hours in Israel

See how Harvest helps manage billable hours in Israel, providing accurate time tracking and efficient invoicing solutions.

Screenshot of Harvest's billable hours tracking interface designed for Israel's labor laws.

Billable Hours Calculator in Israel FAQs

  • The standard workweek in Israel is 42 hours, reduced from 43 hours in April 2018. A five-day workweek typically involves 8.6-hour workdays, while a six-day workweek is 8 hours per day.

  • Overtime in Israel is calculated at 125% of the regular hourly wage for the first two hours and 150% for additional hours. Weekly overtime is capped at 16 hours.

  • The minimum monthly wage in Israel is 6,247.67 ILS, equivalent to approximately $1,700 USD, with an hourly rate of 34.32 ILS or about $9.29 USD.

  • Freelancers registered as "Osek Murshe" must charge 18% VAT on services. "Osek Patur" freelancers are exempt from VAT but have a revenue cap of about 120,000 ILS.

  • Israeli invoices must include a unique number, date, contractor and client details, a detailed service description, total amount, payment terms, and VAT specification.

  • Harvest offers one-click timers and detailed reporting to capture billable hours accurately, helping businesses manage time and invoicing efficiently.

  • Yes, Harvest integrates with financial platforms like QuickBooks and Xero, enhancing financial management and streamlining invoicing processes.