Harel Insurance Group to Award Employees NIS 10,000 Bonus

The Harel Insurance Group announced it will distribute a bonus of 10,000 shekels to each of its approximately 5,000 employees. The announcement was made by Group Chairman Yair Hamburger during a company event held before Rosh Hashanah, which featured a performance by singer Omer Adam.

The total cost of the bonuses is estimated at 57 million shekels, assuming all employees receive the payment. This bonus follows a strong first half of 2024 for Harel, during which the company reported a total profit exceeding one billion shekels.

This is not the first time Harel has provided significant bonuses. In September 2015, the group distributed a one-time gross bonus of 5,000 shekels per employee, costing between 23 and 25 million shekels, to mark 80 years of the Hamburger family's insurance activities in Israel and 40 years since Harel's establishment. Employees also received a 10,000 shekel bonus in 2022.

Harel operates without a workers' union, with employees engaged in direct labor relations with management. The bonuses are seen as a way to reward employees for the company's performance and to maintain positive labor relations and the existing employment model. The company's stock has seen significant growth, rising 84% in the past 12 months to a market value of approximately 41 billion shekels, outperforming the Tel Aviv 35 Index's 39.5% rise over the same period. The stock's performance has also substantially increased the value of the controlling Hamburger family's holdings.