Attorney | Labor Law
Recuperation Pay & Annual Vacation 2026
How much recuperation pay you are owed, how many annual vacation days, what overtime pay applies, and what to do when the employer has not paid. Adv. Liron Yitzhak Elmaliach, free initial consultation.
Recuperation Pay 2026 — Rate, Seniority, and Calculation
Recuperation pay (known in Hebrew as dmei hav'ra'ah) is an annual payment owed to employees after one year of employment. The daily rate was updated in extension orders and currently stands (2025/2026) at approximately ₪419–441 per day, depending on the sector. The number of days increases with seniority: first year — 5 days, second and third years — 6 days, fourth year and beyond — 7–10 days or more (according to collective agreement and industry).
Recuperation pay is usually paid in the summer months — but can be paid at any time stipulated in an agreement. Recuperation pay that was not paid can be claimed up to 7 years retroactively. Some employees discover that their employer "forgot" to pay for many years — and file a cumulative claim for all those years.
An employee dismissed mid-year is entitled to pro-rated recuperation pay for the period worked in that year. An employee who resigned is entitled to recuperation pay accrued up to the date of departure.
Annual Leave — Minimum, Accrual, and Redemption
The Annual Leave Law sets minimum vacation days. For 1–4 years of employment: 10 working days. Year 5: 11 days. Year 6: 12 days. Year 7: 14 days. Year 8 and beyond: 14–18 days depending on collective agreements. Some collective agreements provide more.
Unused vacation days can be carried over to the following year, but cannot be forfeited permanently. Upon dismissal or end of employment — all accumulated vacation days must be redeemed as a cash payment. An employer who prevented an employee from taking vacation — is obligated to pay redemption.
An employer may set vacation dates (organized leave) — but must give at least 14 days' advance notice and ensure the employee takes at least 7 consecutive vacation days per year.
Overtime and Rest Day Compensation
An employee whose working hours exceed 42 per week (or 8 hours per day) is entitled to overtime pay. For the first 2 overtime hours: 125% of regular wages (i.e., a 25% premium). From the third hour onward: 150% (a 50% premium).
Work on the weekly rest day (usually Saturday) — at least 150% compensation. Work on a public holiday — enhanced compensation. Many employees are unaware of these rights, and many employers do not pay them.
If you worked overtime that was not paid — you can claim up to 7 years retroactively. The amounts accumulate quickly — sometimes reaching tens of thousands of shekels for long-serving employees.
Frequently Asked Questions — Recuperation Pay & Vacation
Everything you wanted to know about recuperation pay, annual leave, and overtime
Check Whether Your Employer Paid What You Are Owed
Free initial consultation — Adv. Liron Yitzhak Elmaliach