Guest Post: Calculating Vacation & Havra’a

by Moshe Egel-Tal, CSPP & CEO Israpay

Havra’a is a mandatory payment by law. It is paid annually to all employees who have at least one year’s tenure with their current employer. There are several rates (for private and public sector) and they are updated each year in June.

The current rate (June 2011) in the private sector is 365 shekels per day. Employees are allotted days according to their tenure as follows:

1 year = 5 days

2 – 3 years = 6 days

4 – 10 years = 7 days

11 – 15 years = 8 days

16 – 19 years = 9 days

20 and onwards = 10 days

The amounts are gross and subject to income tax, social security and health tax.

They are usually paid in July’s salary, however some employer’s break it up into 2 or 3 payments during the course of the year and in Hi-tech they usually divide it by 12 paying 1/12th each month.

Moshe Egel-Tal, CSPP is the Founder and CEO, Israpay “making payroll simple”
Mobile: 054-4992705


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