Annual leave in Israel by law: a table by seniority, accrual and payout at the end of employment

Service page: Payslip review by a lawyer and CPA.

How many days of annual leave is an employee entitled to in Israel?

The Annual Leave Law, 5711-1951, sets a minimum that rises with seniority. A sector-wide extension order, a collective agreement or the employment contract can give more. Under section 3(a) of the Law, you are entitled to 16 vacation days in each of the first five years. The vacation days may include no more than one weekly rest day for every seven vacation days. So in a six-day work week, that is at least 14 working days. The Law does not set how many working days this is in a five-day week. An extension order or the agreement that applies at the workplace sets the conversion. In the sixth year, it is 18 days, and in the seventh year, 21. From the eighth year, you get one more day for each year, up to 28 days. Note: collective agreements and many employment contracts give additional days above the minimum.

Vacation days by law: the table by seniority

Section 3(a) of the Annual Leave Law sets the length of the vacation for each year of employment with one employer or at one workplace. A year of employment under the Law is 12 months starting on 1 January (section 1). These are the days set in the Law, and they are a floor. A collective agreement, an extension order, an employment contract or a custom can give more (section 38).

The third column is calculated from the rule at the end of section 3(a). The vacation days may include no more than one weekly rest day for every seven vacation days. For example, 16 vacation days include at most two weekly rest days, so in a six-day work week at least 14 working days remain. For a five-day work week, the Law does not set how many working days these are. So there is no column for it in the table. Check the arrangement that applies at the workplace: an extension order, a collective agreement or the employment contract.

Some days are not counted as vacation days, even when they fall during the vacation (section 5(a)). These are days of reserve duty, and holidays on which no work is done (other than weekly rest days). They also include birth and parenting days, and days on which the employee is unable to work because of an accident or illness. And they include days of mourning in the family, days of a strike or lockout, and days of advance notice of dismissal beyond 14. The Minister of Labor may set a longer vacation for certain work in regulations (section 3(a)).

Worked only part of the year? Proportional vacation

• The employment relationship lasted the whole year of employment (1 January to 31 December). Someone who worked at least 200 days in that year is entitled to the number of days in the table. Someone who worked less is entitled to a proportional part: the days actually worked divided by 200 (section 3(b)).
• The employment relationship lasted only part of the year, for example when you started or stopped working in the middle of the year. Someone who worked at least 240 days in that part of the year is entitled to the number of days in the table. Someone who worked less is entitled to a proportional part: the days actually worked divided by 240 (section 3(c)).
• Part of a vacation day is not counted (sections 3(b)(2) and 3(c)(2)).

A hypothetical example: an employee in their third year of employment stopped working in the middle of the year. They had actually worked 110 days in that year. The vacation for that year: 16 × 110 ÷ 240 = 7.33, and since part of a day is not counted, 7 days (section 3(c)(2)).

Take an hourly or daily-paid employee, that is, someone whose pay for work is not paid on the basis of a month or a longer period (section 1). If they worked fewer than 75 consecutive days for the same employer, section 3 does not apply to them. Instead of vacation, they receive a payment in lieu of vacation (section 4(a); see Worked fewer than 75 days?).

Day of choice and memorial day: what changed in 2026

The vacation is given in the last month of the year of employment for which it is due. Or it is given during the following year of employment (section 6(a)). Even so, the employee may take one vacation day during the year of employment, on a date of their choice. They may take one more day on one of the days listed in the Schedule to the Law. The condition is that they told the employer at least 30 days in advance (section 6(b)). These two days are taken out of the vacation days.

The Schedule lists festival, fast and holy days of various religions and communities (items 1–7 of the Schedule). It also lists days such as International Women’s Day, Holocaust Remembrance Day, and Memorial Day for the Fallen Soldiers of Israel and Victims of Hostile Acts and Terrorism. Jerusalem Day and May Day are on it too. Item 8 adds the private memorial day of a fallen soldier, or of someone who died as a result of a hostile act, for their family member.

Amendment No. 17 (2026): this amendment to the Law was published in Sefer HaHukim (the official gazette of statutes) on 20 July 2026 (Sefer HaHukim 3554). It added item 9 to the Schedule: the memorial day of a person who died, for their family member (parents, spouse, children, brothers and sisters). So you can choose the memorial day of a family member as the day under section 6(b). It comes out of your vacation days, with notice to the employer 30 days in advance.

Can you carry vacation days over to next year?

Under section 6(a) of the Annual Leave Law, the vacation is given in the last month of the year of employment for which it is given, or during the following year of employment. A year of employment starts on 1 January (section 1). As a rule, vacation cannot be carried over. But with the employer’s consent, you may use at least seven vacation days and add the balance to the vacation of the next two years of employment (section 7(a)). A collective agreement, an extension order or the employment contract may set a more favorable arrangement. Vacation not given by the end of employment is paid out in money (section 13).

What happens to vacation days you didn’t use when you leave?

When an employee leaves (whether dismissed, resigned or retired on a pension), they are entitled to vacation redemption for annual leave days not used. The redemption equals the vacation pay they would have received had they gone on vacation on the day they stopped working (section 13). Under the law, unused sick days are not paid out at the end of employment. A claim under the Annual Leave Law expires within three years (section 31).

Vacation redemption at the end of employment: how it is calculated

An employee who stopped working before being given the vacation due to them up to that day is entitled to vacation redemption (section 13). It equals the vacation pay they would have received had they gone on vacation on the day they stopped working. In other words, the redemption is calculated like vacation pay, under section 10:

How is vacation pay calculated? Vacation pay is equal to the regular wage (section 10). A monthly-salaried employee receives the salary they would have received had they continued working. An hourly or daily-paid employee receives the wages for the quarter before the vacation divided by 90, multiplied by the number of vacation days. If that quarter included months of less than full employment, the employee may choose the quarter of fullest employment in the 12 months before the vacation. A payment to cover expenses that do not exist during the vacation is not included. An employer that pays less is breaking the law, even if it did so by mistake. This is what a payslip review by a lawyer and CPA looks like.

A hypothetical example: an hourly or daily-paid employee on a daily wage who earned NIS 27,000 in the quarter before the vacation. Their average daily wage is 27,000 ÷ 90 = NIS 300. For 5 vacation days, they are owed NIS 1,500 (section 10(b)(2) of the Annual Leave Law, as of 4 October 2026).

1. Find the balance. Every payslip must include the number of vacation days given in the pay period and the balance of vacation days. This is under item 4(5) of the Schedule to the Wage Protection Law, 5718-1958. Check the balance on the last payslip.
2. Calculate the daily wage. A monthly-salaried employee: the salary they would have received had they continued working (section 10(b)(1)). The Law does not set by how many days the monthly salary is divided. So check the work schedule and the arrangement that applies at the workplace. An hourly or daily-paid employee: the wages for the quarter before the day they stopped working, divided by 90 (section 10(b)(2)). If that quarter included months of less than full employment, they may choose the quarter of fullest employment in the preceding 12 months.
3. Multiply the balance days by the daily wage. The result is a gross amount.

A hypothetical example: a monthly-salaried employee with a salary of NIS 11,000 a month stopped working. Her last payslip shows a balance of 9 vacation days. According to her work schedule, there are 22 working days a month. So 11,000 ÷ 22 = NIS 500 a day, and 9 × 500 = NIS 4,500 gross (sections 10(b)(1) and 13).

Worked fewer than 75 days? 4% payment in lieu of vacation

Take an hourly or daily-paid employee, for example an employee paid by the hour or by the day. They may have worked for one employer or at one workplace for fewer than 75 consecutive days. This can be in one year of employment or in two consecutive years. Then they do not receive vacation days under section 3. Instead, the employer pays a payment in lieu of vacation on their behalf, of at least 4% of the wages (sections 4(a) and 15(a)). This applies if there is no written employment contract between them for a continuous period of employment of more than 74 days. The payment in lieu of vacation is paid to the vacation fund of the sector, or in another way set in regulations (section 15(b)).

Working days are considered consecutive even after some breaks (section 4(b)). These are breaks because of reserve duty, weekly rest or a holiday, vacation, a strike or lockout, an accident or illness, or days of mourning. A temporary break without the employment relationship ending also counts. Some employees continue working for the same employer for more than 74 consecutive days. For them, the employer pays vacation pay or vacation redemption. At the employer’s request, the vacation fund refunds what the employer transferred to the fund for that employee (section 15(c)).

What should the payslip show about vacation?

• Days and balance: the number of vacation days given in the pay period, and the balance of vacation days. This is under item 4(5) of the Schedule to the Wage Protection Law.
• The payment: vacation pay is a payment in addition to the regular wage. The payslip sets out the type of payment, the number of units and the amount (item 5(3) of the Schedule).
• Vacation register: some employers must keep a vacation register with the details set in regulations. This applies to the types of employers set in a notice (section 26 of the Annual Leave Law; Annual Leave Regulations (Vacation Register), 5717-1957 (תקנות חופשה שנתית (פנקס חופשה), התשי״ז-1957)).
• “All-inclusive wage”: a wage may be set as including vacation pay, payment in lieu of vacation or vacation redemption. It is considered a regular wage only (section 5 of the Wage Protection Law). The employer may not have given a payslip, or gave one that did not include vacation pay or vacation redemption. Then the wage paid is presumed not to include them, unless the employer proved otherwise (section 26B(c)).

How to read the whole payslip, line by line: Payslip: what must appear on it and how to read it.

How long do you have to sue? 3 years

The limitation period for any claim under the Annual Leave Law, civil or criminal, is three years (section 31). It is shorter than the general limitation period in the Prescription Law, 5718-1958, which is seven years (section 5(1)). Disagreements over how vacation pay or vacation redemption is calculated are decided by the Regional Labor Court (section 14(b)). The details: Limitation periods for wage and employment claims.

Vacation pay, vacation redemption and payment in lieu of vacation are treated in every respect as wages (section 17). Not giving vacation, and not paying vacation pay or vacation redemption, are breaches. For them, the Ministry of Labor may impose a monetary sanction (administrative fine). In 2026 the amount is NIS 24,060 (Part B of the Second Schedule to the Increased Enforcement of Labor Laws Law, 5772-2011). For not keeping a vacation register: NIS 6,010 in 2026 (Part A).

Sick pay: what does the law really say?

Under section 4(a) of the Sick Pay Law, 5736-1976, a day and a half accumulates for each full month of work. That is up to 18 days a year, and up to 90 days in total.

• First day of illness: not paid (unless the agreement provides otherwise)
• Days 2–3: 50% of the wage
• From the fourth day: 100% of the wage
• Accumulation: the days accumulate up to 90 days and do not expire at the end of the year

Sick note: when can the employer demand one, and when not?

The Sick Pay Regulations (Procedures for Payment of Sick Pay), 5737-1976 (תקנות דמי מחלה (נהלים לתשלום דמי מחלה), התשל״ז-1976) deal with notice. An employee who was absent because of illness informs the employer within three days, if the employer made them aware of this duty (regulation 1). To receive sick pay, the employee provides a sick note from a doctor (regulation 2). A doctor’s visit also includes a phone call or a video consultation. It is also possible to provide a short sick note from the health fund (kupat holim) based on self-reporting. This is allowed no more than four times and no more than ten days a year. The note does not include details about the illness itself.

What do you do when the employer doesn’t meet its duties?

There are tools. One is a complaint to the labor law enforcement authorities. Another is a claim in the Regional Labor Court, where you do not have to be represented by a lawyer. When many employees have the same problem, there is also a class action. The Second Schedule to the Class Actions Law, 5766-2006, allows it in some employment claims. If you are not sure you are receiving everything you are owed, check and document: the documentation is the proof. Keep messages, payslips and every relevant document. Documentation is the basis of any claim. You have rights; do not give them up. The employer did not pay vacation pay or vacation redemption? The steps: Wage claim against an employer.

Frequently asked questions

Day of choice in 2026: can you take a day for a parent’s memorial?

Yes, out of your vacation days. Amendment No. 17 to the Annual Leave Law was published on 20 July 2026. It added to the Schedule to the Law the memorial day of a person who died, for their family member: parents, spouse, children, brothers and sisters. The employee may take one day in the year of employment on one of the days in the Schedule. They must give the employer notice at least 30 days in advance (section 6(b)).

Payment for unused leave (vacation redemption) for an hourly employee: how is it calculated?

An hourly employee is an “hourly or daily-paid employee” (section 1). Their average daily wage is the wages for the quarter before the day they stopped working, divided by 90 (section 10(b)(2)). If that quarter included months of less than full employment, they may choose the quarter of fullest employment in the preceding 12 months. Multiply the daily wage by the number of vacation days not used (section 13). Someone who worked fewer than 75 consecutive days receives a payment in lieu of vacation instead. It is at least 4% of the wages (sections 4(a) and 15(a)).

My employer erased my accrued vacation days. Is that allowed?

The Law does not deal with erasing days expressly. It provides that vacation cannot be carried over. But with the employer’s consent, the employee may use at least seven vacation days and add the balance to the vacation of the next two years of employment (section 7(a)). A collective agreement, an extension order, an employment contract or a custom can set a more favorable arrangement (section 38). The balance of days must appear on every payslip (item 4(5) of the Schedule to the Wage Protection Law). A claim under the Law expires within three years (section 31).

How many vacation days are you entitled to in a five-day work week?

The Law sets the number of vacation days by seniority: 16 in each of the first five years, and up to 28 (section 3(a)). It adds that the vacation days may include no more than one weekly rest day for every seven vacation days. It does not set how many working days these are in a five-day week. So check the arrangement that applies at the workplace: an extension order, a collective agreement or the employment contract.