Who Qualifies for Holiday Pay in Israel and How Much Are They Entitled To

Holiday pay in Israel is a complex entitlement primarily designed for hourly and daily wage workers who lose income when workplaces close on holidays. Monthly salaried employees receive a fixed salary regardless of holidays, so holiday pay is generally included in their regular wages. However, hourly and daily workers are entitled to specific holiday pay for days they do not work due to holidays, provided they meet certain conditions.

The entitlement is based on a general extension order covering all workers and the Hours of Work and Rest Law, which defines pay rates for actual work on holidays. There are nine official holidays annually for Jewish workers, including Rosh Hashanah, Yom Kippur, Sukkot, Passover, Shavuot, and Independence Day. Workers of other religions receive equivalent holiday pay for their respective religious holidays, such as Eid al-Fitr for Muslims and Christmas for Christians. Workers choose which religious holiday calendar applies to them.

Eligibility for holiday pay requires hourly or daily workers to have completed at least three consecutive months of employment with the same employer. Additionally, they must have worked the day before and the day after the holiday unless absence was approved or part of authorized leave. Holidays falling on weekends generally do not qualify for holiday pay unless the worker was scheduled to work that day, such as in hospitality.

Workers required to work on a holiday receive a 50% premium on their hourly wage, and if work was compulsory, they are also entitled to holiday pay alongside their wages. Holiday pay is calculated based on the average daily hours worked in the three months preceding the holiday multiplied by the hourly wage, with a minimum wage floor. For example, an hourly worker earning 45 shekels per hour and working 7.5 hours daily would receive about 337 shekels per holiday day.

Common errors include unapproved leave before holidays, employers claiming holiday pay is included in hourly wages without clear payslip separation, and confusion over partial holidays like Chol Hamoed. Workers should check their payslips for a separate holiday pay line and can request corrections from employers or file complaints with the Ministry of Labor if unpaid. Claims can be made retroactively for up to seven years through labor courts.

This guidance aims to clarify workers’ rights and ensure they receive the holiday pay they are legally entitled to under Israeli labor law.