Israeli Workers Entitled to Daily Travel Expense Reimbursements Up to 22.6 Shekels in 2026

In Israel, employees are entitled to travel expense reimbursements for commuting costs to and from work, as mandated by a nationwide labor order. For 2026, the daily reimbursement cap is set at 22.6 shekels per workday, meaning employers are not obligated to pay beyond this amount unless otherwise agreed in personal or collective agreements. The reimbursement is calculated based on the cheaper option between the actual public transportation fare for a round trip or the cost of a monthly public transport pass divided by the number of working days.

This right applies to all employees who require transportation to work, including part-time workers, but excludes those living within 500 meters or fewer than two bus stops from their workplace, unless they have disabilities. Reimbursements are only paid for days actually worked and requiring travel; no payments are made for sick leave, vacations, or remote work days. Employees receiving organized transportation from their employer are also not eligible for additional reimbursement.

Even if employees commute by private car, the reimbursement is calculated according to public transport rates unless a different agreement exists. Travel reimbursements are considered taxable income, subject to income tax and social security deductions. Employers may include travel expenses within the salary if the employee consents explicitly and the adjusted salary does not fall below minimum wage.

Employees who have not received due reimbursements can claim retroactively up to seven years through labor courts. The right to travel expense reimbursement is non-waivable, and any written waiver is legally invalid. Senior citizens over 67, exempt from public transport fees, receive reimbursements based on actual saved costs. Collective agreements in some sectors may offer better terms than the general cap.

Summary: Israeli employees are entitled to daily travel expense reimbursements capped at 22.6 shekels in 2026, calculated by the cheaper public transport fare or monthly pass rate, with specific eligibility rules and tax implications. Employers must comply or face retroactive claims, while the right cannot be waived.