On Aug 13, 2012 The “law for reducing the national deficit and change of the burden of tax 2012” was made public.

This law goes into affect on Jan 1, 2013 and includes 2 items regarding employees:

1) A change in the tax brackets for salaried employees as follows (amounts are from total gross pay):

up to 62,400 sh annually – 10%
from 62,401 sh – 106,560 sh annually – 14%
from 106,561 sh – 168,000 sh annually – 21%
from 168,001 sh – 240,000 sh annually – 31%
from 240,001 sh – 501,960 sh annually – 34%
from every additional sh – 48%

2) Anyone making annual income which exceeds 800,000 sh will incur an additional 2% tax on the amount over 800,000 sh