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

In Israel, employees are legally entitled to reimbursement for travel expenses to and from work, a right protected under a nationwide labor order. As of 2026, the daily reimbursement cap is set at 22.6 shekels per workday, regardless of the actual travel cost, unless a different agreement exists. The reimbursement is calculated based on the lower cost between the actual public transportation fare for a round trip or the monthly public transport pass divided by the number of workdays. This applies even if the employee uses a private vehicle, with payment based on public transport rates unless otherwise agreed.

Eligibility extends to all employees who require transportation to work, including part-time workers, for the days they actually commute. Those living within 500 meters or fewer than two bus stops from their workplace generally are not eligible, except for individuals with disabilities who may qualify at shorter distances. Reimbursement is not provided for days absent due to illness, vacation, or remote work, nor for employees who receive organized transportation from their employer. Senior citizens aged 67 and above, exempt from public transport fees, receive reimbursements reflecting their actual saved costs.

Travel reimbursements are considered taxable income, subject to income tax, national insurance, and health insurance deductions. Employers may include travel expenses in the salary if the employee consents explicitly and the net salary does not fall below the minimum wage. Employees can claim unpaid reimbursements retroactively for up to seven years through labor courts. The right to travel expense reimbursement is mandatory and cannot be waived, even in writing.

Additional sector-specific collective agreements may offer better reimbursement terms. Workers traveling abroad for business have separate expense reimbursement rules. This comprehensive guide aims to clarify workers' rights and employer obligations regarding travel expense reimbursements in Israel for 2026.