Hundreds of shekels a year added to workers: increase in recreation pay in the private sector takes effect
The extension order raising recreation pay in the private sector for 2026 has taken effect. Recreation pay will rise to 451.5 shekels per day, an increase of about 8% from 418 shekels. Employers who have already paid will be required to make up the difference retroactively. Between 2 and 3 million workers are expected to benefit from the annual addition of hundreds of shekels.
The extension order raising recreation pay in the private sector for 2026 took effect today (Tuesday). The order raises recreation pay to 451.5 shekels per day, an increase of about 8% from the previous amount of 418 shekels. Employers who have already paid recreation pay for this year will be required to make up the difference in accordance with the new order. The update will accumulate to an addition of hundreds of shekels per year, and according to estimates, between two and three million workers in the economy may benefit from it. The order was signed on Sunday by Labor Minister Yariv Levin, following the agreement signed between the Histadrut and the Business Sector Presidency on June 22. The order has now been published in the Official Gazette and has gained official validity. In addition to the increase in recreation pay for 2026, the order stipulates that the base index for updating the value of recreation pay for 2027 will be according to the level of the consumer price index in May 2026. The update comes after two years of frozen rates and a reduction of one recreation day for all workers following the Swords of Iron war. Recreation pay is an annual payment that the employer is obligated to transfer to the worker after the worker completes a full year of work. Its amount is calculated by multiplying the number of eligible days, the scope of the position, and the level of recreation pay in the economy. At the end of the first working year, a worker is entitled to 5 recreation days, and the number increases over time up to 10 days from the twentieth year. Part-time workers are entitled to a proportional share. Adam Blumenberg, Vice President of Economics and Policy at the Histadrut, said this is a "necessary step that brings a justified economic message to millions of workers in Israel," especially in a period of high cost of living.