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Labour law · 12 Aug 2026

Commuting allowance: what the employee is entitled to

Reimbursement of travel expenses is a right under an extension order, and not a favour from the employer. Even so, it is one of the rights most often forgotten on the payslip.

· Labour law · Translated from the Hebrew original

Who is entitled

An employee who needs transport to reach the workplace is entitled to a contribution to the expenses. There is no requirement to use public transport specifically: the reimbursement is also given to someone who arrives by private car, subject to the same ceiling.

How the amount is calculated

The amount is the cost of a free monthly ticket or the actual cost of the journeys, whichever is cheaper, up to the ceiling set in the extension order. Payment is made for the days on which the employee actually worked: on days of vacation, sickness or absence it does not accrue.

When it is not due

  • When the employer provides organised transport.
  • When a vehicle was assigned to the employee by the employer.
  • When the employee lives within walking distance and does not need transport.

Common mistakes

  • A fixed "travel" amount paid to everyone regardless of actual travel: in a dispute it may be regarded as part of the wages, with implications for the calculation of severance pay.
  • The payment does not appear as a separate line on the payslip: this is a breach in itself.
  • "The salary includes travel" without a breakdown: such an arrangement usually does not pass the test of the Labour Court.

Part-time and shift workers

An employee who comes twice a week is also entitled, according to the number of days of actual attendance. An employee who comes twice a day (a split shift) may be entitled to more than one ticket per day, depending on the circumstances of the journeys.

What to do when it was not paid

Gather payslips for the whole period, calculate the difference for each month and send a written demand. The limitation period is seven years, so the demand usually covers the whole period of employment and not only the last month. In many cases the matter is closed after one letter with an orderly calculation.

The connection to other rights

When it is discovered that travel was not paid, it is worth checking recuperation pay, pension deposits and overtime as well. In most cases this is the same pattern of a deficient payslip, and not one isolated mistake.

What determines the ceiling

The daily reimbursement ceiling is set in the extension order and updated from time to time. When the actual cost of the journey is higher than the ceiling, the employer is not obliged to pay the difference, unless a collective agreement or a more favourable personal agreement applies. It is therefore worth checking first which arrangement applies to your line of work.

Work-related travel: not the same thing

A distinction must be made between travel from home to work and travel as part of the job. Work-related travel is an expense of the employer and is reimbursed in full according to actual cost, regardless of the commuting allowance ceiling and without dependence on the number of working days.

What to do right away

  • Check whether there is a "travel" line on the payslip and whether it changes according to the number of working days in the month.
  • Keep travel tickets or a photo of the travel report on the Rav-Kav card.
  • Ask in writing for an explanation of how the calculation is made: the reply itself becomes evidence.

A fixed "global" amount for travel

Many employers pay a uniform amount to all employees regardless of distance and the number of days of attendance. In a dispute such a payment may be regarded as part of the wages, and then it enters the base for calculating severance pay and makes the final settlement more expensive. On the other hand, when the amount is lower than the actual cost, the difference can be claimed.

Working from home and mixed days

On days when the employee worked from home, no entitlement to a commuting allowance arises, since no attendance was required. When part of the week is worked from home and part in the office, the calculation is made according to the number of days of actual attendance, and sometimes a daily ticket is cheaper than a free monthly one.

This article is general information and is not a substitute for legal advice.

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