Israel’s sick leave law provides employees with sick days that accrue over time under the Sick Pay Law (1976). Employees accrue 1.5 sick days per month of employment (18 per year), and the pay rate increases with the number of days used — 0% for the first day, 50% for the second, and 100% from the third day onward. The system is managed by the National Insurance Institute (Bituach Leumi).
Key Takeaways
- Employees accrue 1.5 sick days per month (18 per year), up to a maximum balance of 90 days
- Day 1 of each illness is unpaid, day 2 is 50% pay, and day 3 onward is 100% pay
- A medical certificate is required from the first day of absence
- Sick days accumulate — unused days carry over year to year
- There is no state sickness benefit — the employer pays directly
Israel’s Sick Leave Entitlement
Israel’s sick leave system is governed by the Sick Pay Law (Dmei Machala, 1976). Unlike most countries, Israel uses an accrual-based system where sick days accumulate over time rather than being granted as a fixed annual entitlement.
Employees accrue 1.5 sick days per month of employment, up to a maximum balance of 90 days. Unused sick days carry over from year to year, so long-term employees may have substantial balances.
The pay rate depends on how many days of the current illness have been used:
| Days Used | Pay Rate |
|---|---|
| Day 1 | Unpaid (0%) |
| Day 2 | 50% of daily wage |
| Day 3+ | 100% of daily wage |
This tiered structure means the employer’s cost increases with the duration of the absence.
Who Pays for Sick Leave?
| Period | Pay Rate | Who Pays |
|---|---|---|
| Day 1 | 0% | Neither |
| Day 2 | 50% of daily wage | Employer |
| Day 3+ | 100% of daily wage | Employer |
There is no state sickness benefit for ordinary illness in Israel. The employer bears the full cost after the first day.
Sick Leave Pay Rates
| Period | Pay Rate | Source |
|---|---|---|
| Day 1 | Unpaid | Sick Pay Law 1976 |
| Day 2 | 50% of daily wage | Sick Pay Law 1976 |
| Day 3+ | 100% of daily wage | Sick Pay Law 1976 |
| Accrual rate | 1.5 days/month (18/year) | Sick Pay Law 1976 |
| Maximum balance | 90 days | Sick Pay Law 1976 |
Medical Certificate Requirements
Israel requires a medical certificate (te’um machala) from the first day of illness. The certificate must be issued by a licensed physician and specify:
- The date of examination
- The expected duration of the absence
- Whether the employee can attend work
The employee must present the certificate to the employer. The employer can verify the certificate through the Bituach Leumi portal.
How to Calculate Sick Pay in Israel
Example: An employee earning ILS 15,000/month (ILS 500/day) is off sick for 10 working days.
- Day 1: ILS 0
- Day 2: ILS 500 × 0.50 = ILS 250
- Days 3–10: ILS 500 × 8 = ILS 4,000
Total paid: ILS 0 + ILS 250 + ILS 4,000 = ILS 4,250
The employee’s normal earnings for 10 days would have been ILS 5,000, so the sick pay covers 85% of normal income.
The Accrual System
Israel’s accrual system is unique:
- 1.5 sick days per month = 18 days per year
- Unused days accumulate up to a maximum of 90 days
- Long-term employees may have balances of 60–90 days
- When employment ends, the employee is paid for unused sick days at the rate of 50% per day (for days 1–60) and 100% per day (for days 61–90)
This creates a financial liability for employers when employees leave.
Employer Obligations and Penalties
Israeli employers must:
- Track sick day accrual and usage for each employee
- Pay sick pay according to the tiered structure
- Maintain medical certificates on file
- Pay for unused sick days upon termination
- Maintain records for at least 7 years
Non-compliance can result in fines from the Ministry of Labour, Social Affairs and Social Services and potential labour court proceedings.
Comparison With Other Countries
| Country | Sick Days | Pay | Certificate Required |
|---|---|---|---|
| Israel | 1.5 days/month accrual (max 90) | 0%→50%→100% | Day 1 |
| UK | 28 weeks SSP | £116.75/week | Day 7 |
| Australia | 10 days personal/carer’s leave | Full rate | 2+ consecutive days |
| US | Varies by state | Varies | Employer policy |
FAQ
Why is day 1 unpaid in Israel?
The Sick Pay Law intentionally makes the first day of each illness unpaid to discourage short-term absenteeism. The 50% rate on day 2 provides a gradual transition to full pay. This structure balances employee protection with employer cost management.
What happens to unused sick days when employment ends?
When employment ends, the employee is entitled to payment for unused sick days. The payment rate is 50% of the daily wage for days 1–60 of the balance, and 100% of the daily wage for days 61–90. This is a significant financial consideration for employers.
How does the 90-day cap work?
The maximum sick day balance is 90 days. Once an employee reaches 90 days, they stop accruing additional days until they use some of their balance. The balance is tracked per employee and does not reset when the employment year changes.
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