Israel Freezes Convalescence Pay Rate
In March 2024, the Knesset legislated the Freezing and Reducing Convalescence Pay in 2024 for Budgeting Benefits for Reservists Law. This law applies to the private sector, following an earlier collective bargaining agreement that applies to the public sector and prescribes a parallel rule.
Q&A
Who receives convalescence pay?
Employees who have completed one year of employment for an employer, including part-time employees.
What was the arrangement for paying convalescence pay prior to the update?
Employees were entitled to convalescence days each year, per years of employment with the employer, according to the following:
- After the first year of employment: five convalescence days.
- During years 2-3: six convalescence days.
- During years 4-10: seven convalescence days.
- During years 11-15: eight convalescence days.
- During years 16-19: nine convalescence days.
- During year 20 prospectively: 10 convalescence days.
What is the value of one day of convalescence?
- The value of one convalescence day in the private sector is ILS 418.
- The value of one convalescence day in the public sector is ILS 471.4.
What is the new arrangement after the update?
The law prescribes that in 2024, every employee in Israel will receive one less convalescence day. As such, employees will receive convalescence days according to the following:
- After the first year of employment: four convalescence days.
- During years 2-3: five convalescence days.
- During years 4-10: six convalescence days.
- During years 11-15: seven convalescence days.
- During years 16-19: eight convalescence days.
- During year 20 prospectively: nine convalescence days.
What about the freeze on the value of a convalescence day?
The law freezes the value of one convalescence day in 2024 so that the value in 2024 will be the same as the value of one convalescence day in 2023. As stated, this amounts to ILS 418 in the private sector and ILS 471.4 in the public sector, or any higher value of a convalescence day paid to an employee in 2023.
The law also freezes convalescence pay rates for employees entitled to an increase by virtue of a special arrangement in a personal employment agreement or collective bargaining agreement. Therefore, the law suspends any increase in convalescence pay until 2025.
Will the new arrangement apply to all employees in the economy?
Yes. However, employees will lose only half a convalescence day in the following instances:
- An employee entitled to five convalescence days and whose average monthly salary during the period between January 2024 and March 2024 did not exceed ILS 6,000 (gross).
- A part-time employee entitled to five convalescence days and whose wages did not exceed ILS 6,000 when multiplied by his employment capacity.
How will convalescence pay be reduced for employees who receive vacation days or other benefits in lieu of convalescence pay?
If convalescence pay is provided by way of funding a vacation or through some other benefit, the funding or value of the benefit must be reduced by the sum equal to the value of one convalescence day.
What must employers do with the sums they withhold?
Employers must withhold at source the value of the relevant convalescence days from the convalescence pay payable to their employees on the employers’ customary payment dates and transfer the sum to the Israel Tax Authority.
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Barnea Jaffa Lande is at your disposal in this regard and in relation to all labor law issues.
Adv. Jacki Silbermann is an associate in the Employment Department.