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Labour law · 12 Aug 2026

Recuperation pay: who is entitled and how it is calculated

Recuperation pay is a right under an extension order that applies to the whole economy. It is paid once a year, and is often forgotten in the payslip, especially for part-time employees and employees who have finished their work.

· Labour law · Translated from the Hebrew original

Who is entitled

Entitlement arises after a full year of work with the same employer. After the first year, recuperation pay is paid for that year, and thereafter every year.

How many days are owed

The number of recuperation days rises with seniority: in the first years it is a small number of days, and it grows gradually up to the ceiling set in the order. In the public sector the numbers are higher than in the private sector, and sometimes a sectoral collective agreement applies that is more favourable to the employee.

How the amount is calculated

The amount is the number of days multiplied by the recuperation day rate, which is updated from time to time. For a part-time employee the amount is calculated proportionally to the scope of the job. An hourly employee is also entitled, according to the scope of actual work in that year.

Points that are forgotten

  • Recuperation pay is paid also to someone who has finished work, including the proportional part for the last year.
  • At the end of employment it is possible to demand recuperation pay for the last two years, and where the employee is still employed, for the entire period that was not paid.
  • Recuperation pay is not included in the basis for calculating severance pay.
  • The payment should appear as a separate line in the payslip.

What to do when it was not paid

Collect payslips for the entire period, check in which years the line did not appear, calculate the difference according to seniority and the rate in that year, and send a written demand. In most cases this is a simple calculation that does not require proceedings, but only when it is presented in an orderly way and backed by payslips.

What else is worth checking at the same time

When recuperation pay was not paid, further shortfalls will almost always be found: travel expenses, pension contributions, redemption of vacation or overtime. It is better to examine the payslips all at once and submit one full demand than to return to the employer again and again.

End of work and recuperation pay

In the final settlement two things should be checked: the proportional part for the last year, and previous years in which payment was not made at all. An employee who has finished work may demand recuperation pay also for the period preceding the last year, subject to the rules that applied to the period in which the entitlement arose.

What to do when it was not paid

Collect the payslips for the entire period, mark the years in which no recuperation line appeared, calculate the difference according to seniority and the rate in that year, and send a written demand with details. This is a simple calculation, and in most cases it is settled without proceedings, when it is presented in an orderly way and backed by documents.

What else to check at the same time

When recuperation pay is missing, further shortfalls will almost always be found: travel expenses, pension contributions, redemption of vacation or overtime. It is better to examine all the payslips together and submit one full demand than to go back to the employer time after time.

Sources of the right

Recuperation pay is anchored in a general extension order, and sometimes also in a sectoral collective agreement or a more favourable personal agreement. Where several sources apply, the right is determined according to whichever is more favourable to the employee. It is therefore worth first checking which arrangement applies to the sector in which you work.

Frequently asked questions

Do I have to go on vacation to receive it?

No. Payment is not conditional on going on a holiday and does not require receipts.

Is an hourly employee entitled?

Yes, according to the scope of actual work.

When is it paid?

Usually once a year, mostly in the summer months, unless otherwise set in the applicable agreement.

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