Israeli Private-Sector Workers to Get Higher Vacation Allowance This Summer

Israel’s Histadrut labor federation and the Federation of the Israeli Chambers of Commerce signed an agreement on Monday to raise vacation allowance, known as dmei havraa, for private-sector employees. The deal, published on June 22, 2026, will be sent to Labor Minister Yariv Levin for signature on an extension order so it can apply across the economy.

Under the agreement, the daily rate rises from 418 shekels to 451.50 shekels. An employee entitled to 10 vacation days a year will receive about 335 shekels more in gross pay. The increase will benefit roughly 2 million to 3 million salaried workers in the private sector.

The public sector rate had already been updated to 511.6 shekels per day. The new private-sector rate follows two years in which the allowance did not rise, and workers were also forced to give up one vacation day each year under government-backed measures meant to help finance the war effort and bonuses for reservists. That happened through a special law in 2024 and again in 2025.

The new agreement reflects the cumulative rise in prices over three years, but it does not compensate workers for the allowance days taken from them in the previous two years. Histadrut chairman Arnon Bar-David said it was time to “return to the workers” after they carried the burden of the war period. Federation chairman Dubi Amitai said the deal “corrects an injustice” against private-sector employees.