Israel Raises Holiday Pay Rate for Private Sector Workers

Israeli Deputy Prime Minister and Labor Minister Yariv Levin signed an expansion order for a collective agreement, updating the employer's contribution to "holiday and recreation pay" for 2026. The daily rate for this pay will increase to 451.50 shekels, up from 418 shekels in the last update in 2023, reflecting the rise in the consumer price index. This order applies to private sector employees and employers not covered by a more favorable arrangement. It will be applied retroactively, meaning employees who have already received their holiday pay before the order's publication are entitled to the difference up to the updated rate. The Ministry of Labor stated that this increase is a direct and significant addition for workers, helping to reduce the cost of living and strengthen their income. The Ministry also emphasized its commitment to implementing policies that result in tangible benefits on pay slips. The Chief Labor Relations Officer at the Ministry of Labor, Adv. Rivka Ravner, noted that the order is a significant step ensuring private sector employees' rights are adjusted to economic changes, guaranteeing the well-being of hundreds of thousands of workers in Israel after extensive professional and legal review.