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An Accountant’s Review Of Netanyahu’s Pay Slip

bibi pay

In a strange new phenomenon, politicians are publishing their pay slips on social media. Probably in attempt to prove to their constituents just how poor they are. Benjamin Netanyahu has just posted his on Twitter.

Now despite the limited picture resolution available on a tweet I can still make out most of the important bits to really explain what we’re seeing here.

What we are looking at is Prime Minister Benjamin Netanyahu’s February 2016 pay slip from the State Of Israel.

What’s Redacted?

For those wondering what’s redacted it is the following information:

  • Netanyahu’s National ID number.
  • His address
  • The name of his pension and education fund
  • His national insurance number (which is the same as his ID number)
  • The large redacted part on the right side is anyone’s guess

What is he trying to get us to see?

My assumption is that he is showing us how his take-home income is no higher than your average manager or salesman. But I think looking deeper we see a whole lot more. This was posted in response to public demand.

Let’s Review

Gross Income

Bibi’s gross monthly income is 44,077 ILS (11,363 USD) plus an inflation adjustment bringing his total gross salary to 47,485.29 ILS (12,242 USD).

We are looking at an annual salary of about $150,000 USD which is pretty modest given the position.

Deductions

From 47,485.29 ILS, Bibi only ends up with 17,645.73 ILS (4,549 USD) which is 36% of his gross. How could this be? Let’s take a closer look at his deductions.

First of all, Bibi pays the maximum tax rate for a resident of Israel. He has the minimum number of “credit points” and pays at the highest tax bracket at 48%.

Here’s where it get’s interesting.

  1. According to the slip Bibi pays 2.5% of his gross salary to an education fund and 7.5% is paid for by the employer. However, the maximum salary allowable without tax is 15,712 ILS per month. Bibi receives employer paid education fund contributions for his entire salary.

This effectively adds 3,561 ILS (918 USD) to his monthly gross salary

2. Just like in his education fund, tax-free employer paid pension and severance contributions are capped. He receives 13.33% on his whole salary.

This effectively adds 6,329 ILS (1631 USD) to his monthly gross salary

3. The taxable benefit for a company vehicle is an astonishing 12,440 ILS (3207 USD). In Israel the taxable benefit is generally 2.48% of the car’s value. This puts his company car at 501,612 ILS (129,321 USD). According to the PM’s office, this is due to the fact that he must drive an armored vehicle which costs significantly more. But value is value and…

This effectively adds 12,440 ILS (3207 USD) to his monthly gross salary

4. There’s also the stuff you don’t see on the pay slip. Later this year Bibi will receive 4,250 ILS for convalescence pay. There may be one-time benefits that don’t get revealed in February. I am also not going to include government paid ice cream and flower arrangement expenses. But based on this information alone we can conclude that Bibi’s gross effective income is…

70,169 ILS (18,090 USD) or $217,000 USD per year. 

Quite a bit higher that what he stated.

Thank you everyone for nerding out with me on accounting and payroll management.

About the author

Picture of Deebo

Deebo

I'm a Canadian Israeli, Aliyah Class of '10. You may know me as tweeter @notantisemitic but here I'll tickle your Zionist bone in other ways.
Picture of Deebo

Deebo

I'm a Canadian Israeli, Aliyah Class of '10. You may know me as tweeter @notantisemitic but here I'll tickle your Zionist bone in other ways.
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