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

Holiday pay in Israel is a complex right primarily designed for hourly and daily workers who do not work on official holidays due to workplace closures. Unlike salaried employees who receive a fixed monthly wage regardless of holidays, hourly and daily workers lose income when businesses close for holidays, and holiday pay compensates for this loss. 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 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 faiths receive equivalent days for their religious holidays, such as Eid for Muslims and Christmas for Christians. Workers choose which holiday calendar applies to them.

Eligibility differs between salaried and hourly/daily workers. Salaried employees receive full pay during holiday months, so holiday pay is included in their salary. Hourly and daily workers qualify for holiday pay only after completing three consecutive months with the same employer, with the counting resetting if they change jobs. Additionally, to qualify, hourly or daily workers must have worked the day before and the day after the holiday unless absences were approved by the employer or were official leave. Holidays falling on weekends generally do not entitle workers to holiday pay unless they normally work those days, such as in hospitality.

Workers required to work on a holiday receive a 50% premium on their hourly wage, and if they worked under compulsion, they are entitled to both holiday pay and overtime. Holiday pay is calculated based on the average daily hours worked over 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 mistakes include taking unapproved leave before a holiday, misunderstanding that holiday pay is separate from regular wages, expecting pay for intermediate festival days (chol hamoed), and failing to check pay when working for multiple employers. Workers who believe they were denied holiday pay should first request clarification from their employer in writing and may escalate to the Ministry of Labor or labor courts if necessary. The article provides a detailed Q&A on holiday pay rights and calculations.