Update for employers: increase in the Israeli convalescence pay rate

An Extension Order was published in Israel on August 18, 2026 updating the rate of employers’ contributions to employees’ convalescence and vacation expenses for 2026.

According to the Extension Order, an employer’s contribution to its employees’ convalescence and vacation expenses for 2026 will be ILS 451.50 per day of convalescence, instead of ILS 418 as had been in effect up until now.

To whom does the new Extension Order apply?

The order applies to all employees and employers in Israel, apart from employees whose wages are payable according to collective bargaining agreements applying to the public service sector, employees whose wages are payable with linkage to public service wage agreements, and apart from employees of sheltered enterprises pursuant to the provisions of the Minimum Wage Law.

What should employers do now?

Make sure that your payroll department or payroll-provider updates payroll systems according to the new rate. If you have already calculated or paid the convalescence pay for 2026 at the previous rate (ILS 418), you  must update them according to the new rate (ILS 451.50) and pay the balance due to employees.

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Adv. Netta Bromberg is a partner and heads our firm’s Employment Department.

Adv. Ariel Pick Lubin is an associate in our firm’s Employment Department.

Barnea Jaffa Lande’s Employment Department is at your service to provide professional advice in this regard and on any other issue pertaining to various aspects of labor law.