...

Dmei Avraha

Avraha in israel Cabinet Expert Comptable Dray & Dray

Following your feedback about the Avraha in Israel, we have decided to list your main questions:

The Avraha in Israel

What happens when an employee is laid off just before the end of his or her 1st year of employment?

The onus is on the employer to prove that the employee was not dismissed in order to avoid paying severance pay and Avraha, otherwise the employee may claim that the Avraha days be paid with his last salary.

Can the Avraha be added to the monthly salary?

The employer can claim that Avraha days are included in the gross monthly salary.

This is the case as long as the gross salary covers the minimum wage and the Avraha.

As a reminder, the minimum hourly wage in Israel will be 29.12 shekels in January 2022.

However, an explicit written agreement between employer and employee is required for this procedure to be valid.READ ALSO: SALARY IN ISRAEL: ONLINE SIMULATION.

What about the person who worked only part of the second year?

It is agreed that employees with one year's seniority are entitled to Avraha in Israel.

So a private-sector employee who has worked for a year and a half is entitled to 5 days for the first year and a further 3 days for the second.

That's half of what he would have been entitled to if he had worked the whole 2nd year.

What about part-time workers?

An employee working part-time is entitled to Avraha in proportion to the hours worked.

When do we receive the Avraha?

The employer must pay Avraha between June and September.

However, if the workplace has agreed to another arrangement, the employer may pay the Avraha in any other month of the year.

Is it possible to force an employee to take a vacation that will be paid for by the employer if the Dmei Avraha are not paid?

The employer may not require the employee to take an employer-financed vacation instead of paying Avraha, unless the employee agrees.

Furthermore, even if the employee has given his or her consent, the employer may not pay for a vacation that is less than the amount of Dmei Avraha to which the employee is entitled.

Why do employees pay income tax and bituah leumi on the Avraha they receive?

Avraha is employment income like any other, and is therefore taxable. Most payments made as part of the employment relationship are taxable, except for severance pay, which is subject to a tax-free ceiling (12,420 shekels per year of service, current as of August 2021).

OUR OFFICES

Jerusalem

Kanfei Nesharim 68. Merkaz Oranim.

Tel Aviv

31 boulevard Rothschild

CONTACT US

Phone : 02 631 9000
Fax: 02 631 9005
Email : office@cpa-dray.com

Talk to the Experts

OUR VIDEOS

Our latest tax and accounting videos

In partnership with :
OUR LATEST ANALYSES

Read our latest articles & tips.

In partnership with :
Leasing in Ossek mourche
Osek Murshe

Leasing in Ossek mourche

Leasing in Ossek Mourche - Optimize your expenses and benefit from tax deductions with leasing for Israeli entrepreneurs. Discover the advantages and obligations of leasing in Israel

Read more "

Contact

Our offices in Israel

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

Our consultants in Tel Aviv

English speaking accountants in Israel
Address: 31 boulevard Rothschild, Tel-Aviv (Israel)
Phone number: 03-9446635
Fax: 03-9494682
Email: office@cpa-dray.com

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