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Full coverage· Economy· Updated

Labor Minister Delays New Vacation Pay Increase Until August Approval

Israeli workers will not receive the planned increase in vacation pay in their next paycheck due to a delay in Labor Minister Yariv Levin's approval. The new rates will only take effect after a public comment period ends on August 7, with retroactive payments expected in September.

1 newsroom · 1 language · since

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What happened

  1. 01Labor Minister Yariv Levin has not yet signed the extension order for new vacation pay rates.
  2. 02Current paychecks reflect the old daily vacation pay rate of 418 shekels in the private sector.
  3. 03The new daily rate of 451.5 shekels will apply retroactively after August 7, 2026.
  4. 04Public sector vacation pay has already increased to 511.6 shekels per day.
  5. 05Vacation days have returned to full entitlement after two years of reductions.
  6. 06Vacation pay is a legal right and subject to income tax but excluded from pension and severance calculations.

Vacation days have been fully restored after reductions during recent military operations.

Translated and summarized by baba from N12, the latest report. Read N12’s original

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