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With AVRAHA, your boss pays for your vacation!

Avraha in Israel - Cabinet Dray & Dray

What exactly is Avraha?

(Avraha in Israel - vacation pay).

The majority of employees in Israel know that the summer months are not only a source of stifling heat and packing suitcases.

They also correspond to a significant increase in their salaries, through the Dmei Avraha.

Dmei Avraha - vacation pay - is an annual payment from your employer, in addition to your basic salary. (A sort of annual bonus).

Few people realize that the original purpose of this benefit was to enable employees to go on vacation.

This payment is defined according to the seniority of each employee (see table below) multiplied by a predefined daily rate.

The more seniority you have, the more days you get. The value of each day remains unchanged.

Each employer can increase the number of Avraha days in a collective agreement or by individual agreement with its employees.ALSO READ: Questions - Answers on La Avraha.

Who is entitled to Dmei Avraha in Israel?

An employee is entitled to receive the Avraha only after the completion of his 1st year of employment.

You'll need to work a full 12 months to receive the Dmei Avraha.

Thus, it is acceptable that once the summer months have arrived, an employee in his second year of employment will receive Avraha covering the entire period from the beginning of his employment until payment of the Avraha.

Maternity leave, paid leave, sick leave and service in the army as a reservist (milouim) also count towards seniority.

If an employee leaves his place of work (dismissal/resignation), the employer must pay him the unpaid Avraha days.

1- A small example to better understand Avraha in Israel

An employee with less than one year's seniority.

Ms B. is a legal secretary. She started work on November 1, 2018 with her new employer.

When the Dmei Avraha for 2019 are due to be paid (say in June 2019) she won't have a year's seniority.

However, when the 2020 payments arrive (i.e. during the month of June 2020), she will have one year and 8 months of seniority.

She will therefore be entitled to 5 days in the first year and 6 x 8 / 12 = 4 days in the second.

Since she works in the private sector, she will receive a payment of (5 + 4) x 378 = 3,402 Shekels.ALSO READ: Salary in Israel: Online simulation.

2 - An employee quits

If an employee resigns, he or she is still entitled to the remaining days of Dmei Avraha.

The calculation will therefore be made on a pro-rata basis, using the same calculation model as the previous example.

La Avraha: What's in it for me?

It is important to note that the number of Avraha days an employee is entitled to per year is calculated on the basis of seniority.

In fact, the longer you've been at it, the more Avraha days you'll have.

Below is a table summarizing the number of Avraha days according to seniority, broken down by sector of activity:

We hope you enjoy your vacation in Israel, or anywhere else.

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Our firm specializes in Israeli accounting and taxation, with in-depth expertise in Olim Hadashim benefits and tax optimization.

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Our consultants in Jerusalem

English speaking accountants in Israel
Address: Kanfei Nesharim 68. Merkaz Oranim
Phone number: 02 631 9000
Fax: 02 631 9005
Email: office@cpa-dray.com