Holiday Pay: Who is Eligible and How to Calculate Your Entitlements
Holiday pay is a right often overlooked by hourly and daily workers. We explain who is eligible, the seniority and attendance requirements, and how to verify your pay slip to ensure you receive what you are owed.
Holiday pay is one of the most confusing rights in the Israeli labor market. Employees with a fixed monthly salary often overlook it, while hourly and daily workers—for whom this right is intended—frequently discover that the payment is missing from their pay slips. This results in thousands of shekels a year remaining with the employer instead of reaching the employee.
The Logic of Holiday Pay
A monthly salaried employee receives a fixed amount regardless of the calendar, so a holiday falling on a weekday does not affect their income. Conversely, an hourly or daily worker is paid only for hours actually worked; thus, the closure of a workplace on a holiday reduces their salary. Holiday pay is designed to bridge this gap.
This right is based on a general extension order and the Hours of Work and Rest Law. It covers nine holidays per year. For Jewish employees, this includes the two days of Rosh Hashanah, Yom Kippur, the first day of Sukkot and Shemini Atzeret, the first and seventh days of Passover, Shavuot, and Independence Day. Employees of other religions are entitled to the same number of days according to their respective religious calendars.
Eligibility Conditions
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Seniority: An hourly or daily worker must complete three months of employment with the same employer. Moving to a new workplace resets this counter.
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Attendance: Eligibility is conditional on working the day before and the day after the holiday. Absence on either day—unless approved by the employer or part of a sanctioned vacation—negates the right to payment.
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Calendar: If a holiday falls on a Saturday or a Friday (a regular rest day), payment is generally not made, unless the workplace operates on weekends (e.g., restaurants or hotels).
Calculation and Common Mistakes
The payment for an hourly worker is based on the average daily working hours over the three months preceding the holiday, multiplied by the hourly wage. As of 2026, the hourly minimum wage is 35.4 NIS.
Common mistakes to avoid:
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Taking vacation the day before a holiday without documented approval.
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Relying on a total salary figure where the employer claims holiday pay is "embedded" in the hourly rate without a separate line item.
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Expecting payment for "Chol HaMoed" (intermediate days), which are generally not considered holidays for payment purposes.
If the "holiday pay" line is missing from your pay slip, you should contact your employer in writing. If the issue remains unresolved, you may file a complaint with the Ministry of Labor’s Regulation and Enforcement Division or pursue a claim in the regional labor court.
