Update for Employers: Increase in Israeli Convalescence Pay Rate
Summary
- On August 18, 2026, an extension order was published updating the amount of employers’ contributions toward convalescence and vacation expenses for 2026.
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For 2026, an employer’s contribution toward employees’ convalescence and vacation expenses will be ILS 451.50 for each convalescence day, replacing the previous amount of ILS 418.
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This update provides complete details on which employers are subject to the new update and what employers should do if convalescence pay for 2026 has already been paid
An extension order was published in Israel on August 18, 2026, updating the rate of employers’ contributions toward employees’ convalescence and vacation expenses for 2026.
According to the extension order, an employer’s contribution toward employees’ convalescence and vacation expenses for 2026 will be ILS 451.50 per day, replacing the previous rate of ILS 418.
To Whom Does the New Extension Order Apply?
The order applies to all employees and employers in Israel, except for employees whose wages are paid under collective bargaining agreements applicable to the public service sector, employees whose wages are linked to public service wage agreements, and employees of sheltered enterprises under the Minimum Wage Law.
What Should Employers Do Now?
Ensure that your payroll department or payroll provider updates its payroll systems to reflect the new rate. If you have already calculated or paid convalescence pay for 2026 at the previous rate of ILS 418, you must recalculate the payment at the new rate of ILS 451.50 and pay employees the outstanding balance.
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Adv. Netta Bromberg is a partner and head of the firm’s Employment Department.
Adv. Ariel Pick Lubin is an associate in the firm’s Employment Department.
Barnea Jaffa Lande’s Employment Department is available to provide professional advice on this matter and on other labor law issues.