How are sick days calculated in Israel?

Every employee accrues 1.5 sick days per month (18 days per year, up to a cap of 90 days). A medical certificate is required to claim sick pay. Day 1 is unpaid, days 2-3 are paid at 50% of salary, and from day 4 onward at 100% of salary.

Israeli Labor Law at a GlanceEmployee rights & employer obligations · from first hire to termination

Q: Is a pre-dismissal hearing mandatory in Israel?

Yes, a hearing (shimua) is mandatory under Israeli case law. The employer must provide the employee with a written invitation to the hearing, specify the reasons for the planned dismissal, and give the employee reasonable time to prepare and present their case. Dismissal without a hearing may entitle the employee to additional compensation beyond regular severance.

Israeli labor law covers every stage of employment: the written contract within 30 days, minimum wage of ₪6,443.85/month, mandatory pension contributions, annual leave, sick pay, and the hearing required before any dismissal. Here is the whole picture in one guide · for employers and employees alike.

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Israeli labor law: employee rights and employer obligations explained

30 daysDeadline for a written employment agreement

₪6,443.85Monthly minimum wage · ₪35.40/hour

Unofficial English translations · the Hebrew statutes are legally authoritativeEvery statutory passage quoted below is our own plain English translation or summary of the Hebrew law. It is provided for understanding only and has no legal force. In any dispute, only the Hebrew text published in Reshumot (Israel's official gazette) governs. Verify against the official Hebrew sources linked here.

Hebrew statutes · Nevo Hebrew version

AI summary · Israeli labor law at a glance

Israeli labor law is a set of statutes and collective extension orders that protect employees from the first day of work to termination. The core rules: a minimum wage of ₪6,443.85/month (₪35.40/hour) under the Minimum Wage Law; a work day and week capped by the Hours of Work and Rest Law, with overtime at 125% then 150% and a weekly rest of at least 36 hours; on-time wages and a lawful payslip under the Wage Protection Law; mandatory pension of 18.5% under the extension order; severance of one month per year under the Severance Pay Law; a mandatory pre-dismissal hearing plus advance notice; and paid annual leave and sick days. Each topic below quotes the governing Hebrew statute in unofficial English, then explains it in plain language with an example.

Minimum Wage Law · Nevo Hours of Work & Rest · Nevo Wage Protection · Nevo Severance Pay · Nevo Employee rights · Hebrew

Minimum wage · ₪6,443.85/month, ₪35.40/hour (Minimum Wage Law).
Hours · day up to 8h, week up to 45h; overtime 125% then 150%.
Weekly rest · at least 36 consecutive hours; 150% for rest-day work.
Wages & payslip · paid at month end, written payslip mandatory.
Pension · 6% + 6.5% + 6% severance = 18.5% under the extension order.
Ending work · hearing + notice + severance (one month per year).

Table of contents

The law in numbers
What is Israeli labor law?
Employer obligations
Employment agreement & Form 101
Minimum wage
Working hours & overtime
Rest days & weekly rest
Wages & payslip
Pension contributions
Severance pay
Notice & dismissal
Annual leave & sick days
Two worked examples
Test your knowledge
Frequently asked questions

At a glance

Israeli labor law in numbers

₪6,443.85Monthly minimum wage

182Monthly work hours (full-time)

30Days to provide an employment contract

18.5%Total mandatory pension + severance contributions

Overview

What is Israeli labor law?

Israeli labor law is a body of laws, regulations, and collective extension orders governing the relationship between employees and employers. Its main purpose is to protect employee rights and ensure fair employment conditions across all employment types · salaried employees, contractor employees, and temporary workers.

Sectoral extension orders expand rights in specific industries, on top of the key statutes:

Minimum Wage Law, 1987 · Hebrew: wage protection / Nevo
Hours of Work and Rest Law, 1951 · Hebrew: חוק שעות עבודה ומנוחה
Wage Protection Law, 1958 · Hebrew: חוק הגנת השכר
Severance Pay Law, 1963 · Hebrew: חוק פיצויי פיטורים
Annual Leave Law, 1951 · Nevo
Sick Pay Law, 1976 · Advance Notice Law, 2001 · Mandatory Pension Extension Order

Employees and employers covered by Israeli labor law

One frameworkLaws + extension orders protecting every employee

For employers

Employer obligations · rights & duties

When an employer-employee relationship exists, Israeli labor law imposes extensive obligations on the employer. The employer must open a withholding tax file with the tax authorities and National Insurance, and every month submit reports and payments to National Insurance (Bituach Leumi), income tax, and pension companies.

Open a withholding tax file

Monthly reporting

Reports and payments to National Insurance, income tax, and pension companies · every month.

Payslips & compliance

Issue a monthly payslip, make pension contributions, and comply with all labor laws.

The recruitment process begins with posting a job vacancy and ends with full onboarding · there are places where employers can post job listings for free. Proper management of all employee rights is essential to avoid legal violations and fines. Not sure whether your worker is an employee at all? Misclassifying an employee as a contractor is one of the costliest mistakes in Israeli employment · see the contractor vs employee guide.

Example · your first hire, step by step

A small studio hires its first employee, starting on the 1st of the month. The owner's compliance timeline under Israeli labor law looks like this:

Before the first payroll: open a withholding tax file with the tax authorities and National Insurance.
Within 30 days: give the employee a written employment agreement, and have them complete Form 101.
From day one: track attendance daily · clock-in and clock-out times are the basis for salary, overtime, vacation and sick days.
Every month: issue a detailed payslip and report to National Insurance, income tax, and the pension company.
Pension: if the new employee already has an active pension fund, contributions begin after 3 months of work · retroactively from the first day. If not, they begin after 6 months.

Miss any of these and the employer is exposed to fines and lawsuits · which is exactly the paperwork NETO takes over for you.

Onboarding paperwork

Employment agreement & Form 101

Two documents anchor every new hire in Israel: the written employment agreement and the employee's tax form.

Employment agreement · within 30 days

Every employer must provide a written employment agreement within 30 days of the start of employment. It must include:

Job description · responsibilities and the direct supervisor
Work days and hours · scope of position
Salary and conditions · gross salary, components, social benefits
Contributions · pension insurance and severance details
Collective agreement · if the sector is subject to one, it must be stated and followed

Form 101 · the employee tax form

Form 101 is mandatory for every employee, completed within 30 days of starting work. It determines income tax credit points and the tax calculation.

Renewed and re-signed every year at the start of the tax year
Tax credit points are determined by the personal data on the form
Special benefits require documents · new immigrants, priority-area residents, disabled persons, discharged soldiers, degree holders

Employees with more than one income source should also check tax coordination.

Important tip: if your sector is subject to a collective agreement, it typically provides better terms than the legal minimum. Always check this before drafting the employment agreement.

Topic 1 · Minimum wage

Minimum wage · Minimum Wage Law, 1987

The statute that sets the floor on pay. The figures below are confirmed for 2026.

Section 2 Minimum Wage Law · unofficial English

"An employee who has completed the age of 18 and is employed on a full-time basis is entitled to receive from his employer a wage that is no less than the minimum wage per month; an employee paid on an hourly basis is entitled to no less than the minimum hourly wage."
Summary translation of the Minimum Wage Law, 5747-1987, s. 2. Authoritative text: Hebrew (Nevo).

Explanation · not part of the statute

The minimum wage is the lowest pay allowed by law and applies to every employee, without exception. As of 2026 it is ₪6,443.85 gross per month for a full-time role, and ₪35.40 per hour. Part-time pay is pro-rated, but the hourly rate can never drop below ₪35.40. These are floors set by statute, updated periodically by law; sectoral extension orders may set a higher figure, never a lower one.

Example: a worker paid ₪33/hour is being underpaid. At any hours worked, each hour must be at least ₪35.40, and the shortfall is a wage the employer owes by law.

Basis	Minimum wage (2026)	Notes
Monthly (full-time)	₪6,443.85	Gross, full-time position
Hourly	₪35.40	Applies to all hourly employees
Part-time	Pro-rated	By actual hours · never below ₪35.40/hour

Good to know: for the full cost of employing someone beyond gross salary, see the employer cost in Israel guide. Underpayment is enforced under the Wage Protection Law.

Topic 2 · Working hours & overtime

Working hours & overtime · Hours of Work and Rest Law, 1951

Sections 2, 3, 16 Hours of Work and Rest Law · unofficial English

Work day (s. 2): "A work day shall not exceed eight hours; on night work, and on the day before the weekly rest or before a festival, it shall not exceed seven hours."

Work week (s. 3): "A work week shall not exceed forty-five hours."

Overtime pay (s. 16): "For the first two overtime hours on a given day the employer shall pay not less than 1¼ of the regular wage, and for each additional overtime hour not less than 1½ of the regular wage." Under s. 18, the "regular wage" for this calculation includes every supplement the employer pays.
Summary translation of the Hours of Work and Rest Law, 5711-1951, ss. 2, 3, 16, 18. Authoritative text: Hebrew (Nevo).

Explanation · not part of the statute

The statute caps the work day at 8 hours and the work week at 45 hours. Anything beyond the cap is overtime, paid at 125% for the first two hours each day and 150% thereafter. In practice, extension orders shortened the customary week to 42 hours (about 182 hours a month), so many payslips compute overtime beyond that lower threshold. Crucially, overtime is calculated on the "regular wage" including fixed supplements, not on base pay alone.

Example: an 11-hour day at ₪35.40/hour is paid as 8 regular hours, then hours 9 and 10 at 125% (₪44.25 each), then hour 11 at 150% (₪53.10). A full numeric worked example appears further down.

Topic 3 · Rest days & weekly rest

Weekly rest · Hours of Work and Rest Law, 1951

Sections 7, 17 Hours of Work and Rest Law · unofficial English

Weekly rest (s. 7): "The weekly rest shall be at least thirty-six consecutive hours. For a Jewish employee it shall include the Sabbath; for a non-Jewish employee it shall include the Sabbath, Sunday or Friday, according to the day of rest observed by that employee."

Work on the weekly rest (s. 17): "An employee employed during the weekly rest, or part of it, shall be paid not less than 1½ of his regular wage, and shall in addition be given compensatory hours of rest as fixed in the permit under which he was employed."
Summary translation of the Hours of Work and Rest Law, 5711-1951, ss. 7, 17. Authoritative text: Hebrew (Nevo).

Explanation · not part of the statute

Every employee is entitled to a continuous weekly rest of at least 36 hours. Employing someone during that rest is only allowed with a permit, and when it happens the employee earns two things together: at least 150% pay for those hours and compensatory rest hours. Employers may not simply "buy out" the rest day at ordinary rates.

Example: a worker asked to work 5 hours on the Sabbath under a permit is paid 150% for those 5 hours and also receives a substitute rest period set by the permit.

Topic 4 · Wages & payslip

Wages & payslip · Wage Protection Law, 1958

Sections 9, 24, 25 Wage Protection Law · unofficial English

Time of payment (s. 9): "Wages paid on a monthly basis shall be paid at the end of the month for which they are due." Wages unpaid by the ninth day after that date become "delayed wages", carrying a delay-of-wages penalty.

Payslip (s. 24): "An employer must keep a wage ledger and give every employee a written payslip; the ledger entry and the payslip shall be provided not later than the determined day, and shall include the particulars listed in the Schedule to the Law."

Deductions (s. 25): "No sums shall be deducted from wages other than those specified" in the Law, such as sums a statute requires or permits to be deducted.
Summary translation of the Wage Protection Law, 5718-1958, ss. 9, 24, 25. Authoritative text: Hebrew (Nevo).

Explanation · not part of the statute

Monthly wages must be paid by the end of the month, and a detailed written payslip is mandatory every month, no later than the 9th of the following month. The payslip has to show the statutory particulars: pay components, hours, leave and sick balances, and every deduction. Deductions are closed-list: only amounts the law allows (income tax, National Insurance, pension, and specific agreed items) may be taken off.

Example: May's salary is due by 31 May. If it is still unpaid on 9 June it becomes "delayed wages" and the employer is exposed to a delay-of-wages penalty on top of the salary.

Topic 5 · Pension

Mandatory pension · Pension Extension Order

Pension is not set by a Knesset statute but by a general collective extension order that binds every employer in Israel.

Extension Order Mandatory Pension Extension Order · unofficial English

"Every employee shall be insured under a comprehensive pension arrangement. The employer shall contribute to the pension savings, the employer shall contribute in respect of severance, and the employee shall contribute from his wage, at the rates fixed in the order."

Current contribution rates: employee 6%, employer 6.5% to pension, and employer 6% in respect of severance · a total of 18.5% of the insured wage.
Summary of the general Extension Order for Comprehensive Pension Insurance in the Economy. Authoritative text: Hebrew (Nevo).

Explanation · not part of the statute

Every employer must pay into the pension fund the employee chooses. Timing depends on the employee's pension status: with an active fund, contributions start after 3 months of work, retroactively to day one; without one, after 6 months. Together the deposits come to 18.5% of wage (6% + 6.5% + 6%). The 6% severance portion links to Section 14 of the Severance Pay Law, below.

Example: on a ₪10,000 wage, the employee has ₪600 deducted for pension, and the employer deposits ₪650 to pension and ₪600 toward severance. Full details in the pension contributions guide.

Topic 6 · Severance pay

Severance pay · Severance Pay Law, 1963

Sections 1, 12, 14 Severance Pay Law · unofficial English

Right to severance (s. 1): "A person who has worked one year continuously with one employer, or at one workplace, and is dismissed, is entitled to severance pay from the employer who dismissed him."

Rate (s. 12): "The rate of severance pay is one month's wage for each year of employment for a monthly-paid employee; part of a year entitles to a proportional amount."

Fund in lieu (s. 14): "Payment to a provident fund, pension fund or similar fund shall not be in place of severance pay, unless so provided by the applicable collective agreement, or approved by the Minister of Labor, and to the extent so provided or approved."
Summary translation of the Severance Pay Law, 5723-1963, ss. 1, 12, 14. Authoritative text: Hebrew (Nevo).

Explanation · not part of the statute

An employee dismissed after one continuous year is entitled to severance of one month's last wage per year of service (about 8.33% of pay accrued each year). Under Section 14, the monthly 6% severance deposit into the pension fund can replace the lump sum, and then the fund passes to the employee at the end of employment even on resignation. Certain resignations (health, relocation, a serious worsening of terms) are treated as dismissal for severance purposes.

Example: a monthly employee on ₪10,000 dismissed after 4.5 years is entitled to roughly 4.5 × ₪10,000 = ₪45,000 severance. See the Severance Pay Law guide.

Topic 7 · Notice & dismissal

Notice & dismissal · Advance Notice Law, 2001

Sections 2, 3 Advance Notice of Dismissal and Resignation Law · unofficial English

"An employer wishing to dismiss an employee, and an employee wishing to resign, shall give advance notice in accordance with this Law."

Notice period (s. 3): "For a monthly-paid employee: during the first year of work, one day of notice for each of the first six months and two and a half days for each additional month; from the second year of work onward, notice of one month."
Summary translation of the Advance Notice of Dismissal and Resignation Law, 5761-2001, ss. 2, 3. Authoritative text: Hebrew (Nevo).

Explanation · not part of the statute

Both sides must give advance notice, growing with seniority to a full month from the second year. Separately, Israeli labor-court case law (not this statute) requires the employer to hold a hearing (shimua) before dismissing: a written invitation stating the reasons, and a real chance for the employee to respond. Dismissal without a genuine hearing can be ruled unlawful and carry extra compensation. Order of events: hearing, termination or resignation letter, notice period, final settlement (leave redemption and recreation pay), release of pension and severance funds, and an employment certificate (Form 161).

Example: an employee in their third year is entitled to one month's notice. The employer must first hold a hearing, then serve notice, then work the month (or pay in lieu). See the termination process guide.

Topic 8 · Leave

Annual leave & sick days · Annual Leave Law & Sick Pay Law

Annual Leave · s. 3 Annual Leave Law, 1951 · unofficial English

"The length of annual leave for each year of work with the same employer, or at the same workplace, is fixed by the seniority table in the Law, and increases with years of service. Leave that is not taken may be accumulated within the limits set by the Law, and on termination the unused balance is redeemed in cash."
Summary translation of the Annual Leave Law, 5711-1951, s. 3. Authoritative text: Hebrew (Nevo).

Sick Pay · s. 2, 4 Sick Pay Law, 1976 · unofficial English

Payment (s. 2): "For the first day of illness, no sick pay is paid; for the second and third days, sick pay at 50% of the wage; from the fourth day of illness onward, sick pay at 100% of the wage."

Accrual (s. 4): "An employee accrues one and a half days of sick leave for each month of work, up to a total of 90 days."
Summary translation of the Sick Pay Law, 5736-1976, ss. 2, 4. Authoritative text: Hebrew (Nevo).

Explanation · not part of the statute

Paid annual leave follows a seniority table and accrues monthly; unused days can accumulate within limits and are paid out as leave redemption on termination. Sick days accrue at 1.5 per month (up to 90) and need a medical certificate: day 1 is unpaid, days 2 and 3 pay 50%, and from day 4 pay 100%. Recreation pay (dmei havra'ah) and travel reimbursement are added by separate extension orders.

Example: an employee out sick Sunday to Thursday (5 working days) with a certificate is paid: day 1 nothing, days 2 and 3 at 50%, days 4 and 5 at 100%. See the travel reimbursement guide for commuting rights.

Worked examples

Two worked examples

Numbers put the statutes together. Both examples are for illustration only; the real figure depends on the actual pay components and regulations.

Example 1 · overtime on one work day

An hourly employee at the minimum wage of ₪35.40/hour works an 11-hour day. The statutory day is 8 hours (Hours of Work and Rest Law, s. 2), so 3 hours are overtime, paid under s. 16:

8 regular hours

₪283.208 × ₪35.40 (100%)

Hours 9 · 10 (125%)

₪88.502 × ₪44.25 (1¼ × 35.40)

Hour 11 (150%)

₪53.101 × ₪53.10 (1½ × 35.40)

Total for the day

₪424.80vs ₪389.40 with no overtime uplift

Overtime is computed on the "regular wage", which under s. 18 includes every supplement the employer pays.

Example 2 · severance after 4.5 years

A monthly employee on a final wage of ₪10,000 is dismissed after 4 years and 6 months. The rate is one month's wage per year of service (Severance Pay Law, s. 12), with a proportional part for the half year:

Final monthly wage

₪10,000relevant wage

4 full years

₪40,0004 × ₪10,000

6 months (½ year)

₪5,0000.5 × ₪10,000

Total severance

₪45,000paid from the s. 14 fund + top-up

Where Section 14 applies, most of this sits in the pension/severance fund and passes to the employee at the end of employment.

Test your knowledge

Israeli labor law · quick quiz

Five short questions on the core rules. Pick an answer in each; you get instant feedback and the governing law.

1 What is the 2026 monthly minimum wage for a full-time role?

2 How is overtime paid under the Hours of Work and Rest Law?

3 What is the minimum weekly rest?

4 When does a monthly salary become "delayed wages"?

5 What is the total mandatory pension contribution rate?

The quiz is for learning only and is not legal advice. In any specific case, check the Hebrew statute and consult a professional.

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FAQ

Israeli labor law · frequently asked questions

What is the current minimum wage in Israel?

The current minimum wage in Israel is ₪6,443.85 per month for a full-time position of 182 hours, meaning ₪35.40 per hour. The minimum wage applies to all employees without exception, and an employer paying less is violating the law and subject to sanctions.

How long does the employer have to provide an employment agreement?

By law, the employer must provide the employee with a written employment agreement within 30 days of the start of employment. The agreement must include the job description, working hours, salary, social benefits, and details of pension contributions.

What pension contributions is an employer required to make?

Under the mandatory pension extension order, the employer must contribute 6.5% to pension and 6% for severance, and the employee contributes 6% of salary. If the employee has an active pension fund, contributions start after 3 months · retroactively. If not, contributions start after 6 months of work. See the pension contributions guide.

How many vacation days is an employee entitled to?

The number of vacation days is determined by the seniority table in the Annual Leave Law. In the first year, the employee is entitled to 12 vacation days (including Saturdays, in a 6-day week). Vacation days accrue monthly, and if unused, accumulate for 3 years. Upon termination, accrued unused days are paid as leave redemption.

Is a pre-dismissal hearing mandatory?

Yes, a hearing is mandatory under Israeli case law. The employer must provide a written invitation to the hearing, specify the reasons for the planned dismissal, and give the employee reasonable time to prepare and present their case. Dismissal without a hearing may entitle the employee to additional compensation beyond regular severance.

What happens when an employee is sick?

Every employee accrues 1.5 sick days per month (up to a cap of 90 days). To claim sick days, a medical certificate must be provided. Day 1 · no payment. Days 2–3 · 50% of salary. From day 4 onward · 100% of salary.

What is overtime and how is it calculated?

Overtime refers to working hours beyond the regular quota. The first 2 overtime hours are compensated at 125% of the regular wage, and from the 3rd hour onward at 150%. Calculation is first at the daily level (beyond 9 hours), then weekly (beyond 42 hours), and finally monthly (beyond 182 hours).

When is recreation pay paid and who is entitled to it?

Recreation pay is available to every employee who has completed at least one year of work. Payment is usually made once a year (July/August), but can also be paid monthly. The amount is determined by a seniority table · in the first year: 5 recreation days. Unpaid recreation pay from the last year is paid as part of the final settlement upon termination.

Disclaimer: the information on this page is intended for general knowledge only and should not be considered legal advice. Please consult a lawyer, tax advisor, CPA, or other professional as needed. For official and up-to-date information, refer to the Ministry of Labor, the National Insurance Institute, and Kol Zchut.