Israeli Election Day Off Costs Businesses Billions

The upcoming elections in 2026 are projected to cost Israeli businesses approximately 2.68 billion shekels due to the mandatory day off for voting. This figure, estimated by the Manufacturers Association of Israel and cited by Daphna Shmuelovitz, founder of a law firm specializing in labor law, accounts for businesses paying salaries on a day with no revenue.

The calculation is based on data from the Central Bureau of Statistics, estimating the cost for about 2.5 million employees in the business sector at 1.82 billion shekels and for approximately 1.5 million public sector employees at 860 million shekels. This cost is separate from the overall election expenses, which include the election committee's operations, payments to service providers, and campaign financing, bringing the total election cost to an estimated 3.5 to 4 billion shekels.

Shmuelovitz criticized Israel's election system as outdated and costly, noting that most OECD countries hold elections on weekends or offer alternative voting methods like early voting, mail-in ballots, or proxy voting. She also pointed out that in other countries, employees may only be entitled to a few hours off for voting, or the time off is unpaid, unlike Israel's full paid day off.

Despite two private bills in 2023 aimed at reducing the paid day off by requiring proof of voting or shortening the voting hours, they were not passed. Shmuelovitz suggested that modern work arrangements, such as remote work and flexible hours, could allow employees to vote without a full day off. She also proposed exploring online voting options, arguing that in an era of widespread digital government services and biometric identification, blocking online voting for elections is illogical and imposes unnecessary burdens on citizens.