Israeli Workers to Receive Higher Holiday and Recuperation Pay

Israeli workers are set to receive increased holiday and recuperation (Haveraa) pay, with the Ministry of Labor announcing an updated agreement that will boost employer contributions. Minister of Labor Yariv Levin signed an expansion order for the collective agreement between the business sector and the General Workers' Union, raising the employer's contribution for employee recuperation and vacation expenses for 2026.

The daily rate for recuperation in the private sector will increase to NIS 451.50, up from NIS 418 in the last update in 2023. The Ministry of Labor stated that employers must pay the difference in the upcoming paychecks. If not included in the August salary, due to be paid starting September 1, the difference must be paid in the September salary, payable from October 1.

For employees with 20 or more years of seniority, the maximum difference can reach NIS 335 for 10 days of recuperation. This increase is attributed to the rise in the consumer price index. The order, recommended by Adv. Rivka Ravner, the Chief Labor Relations Officer, applies to private sector employees not covered by a more favorable arrangement and is retroactive.

Employees who have already received recuperation pay before the order's publication are entitled to the difference up to the updated rate. Ministry Director General Robi Shemesh emphasized that the raise is a significant addition for workers, helping to lower the cost of living and strengthen their income. Adv. Ravner added that the order ensures employee rights in the private sector are aligned with economic changes, benefiting hundreds of thousands of workers.