Breaking Update

Agreement Reached on Compensation for Public Employees Temporarily Laid Off During War

Israel's Finance Ministry and the Histadrut have reached an agreement on compensation for public sector employees temporarily laid off due to the war.

Economy

Jerusalem, 23 March, 2026 (TPS-IL) — The Ministry of Finance and the Histadrut (Israel’s national labor federation) have agreed on a compensation plan for public sector employees who are on leaves from work due to the war with Iran.

In recent days, the Treasury and the Histadrut have discussed a compensation plan for public sector employees and have now reached agreements in principle.

The agreed outline, which was formulated by the Payroll Division with the Histadrut, is based on the need to preserve the functional continuity of the public sector for the benefit of all citizens in the various essential systems.

Details of the compensation outline:

According to the understandings, the employer will participate in the salary paid for days of absence according to the circumstances of each employee (for the employee’s participation, annual vacation days will be deducted) and will be carried out as follows:

– Workplace closure: In cases where the workplace has been closed or reduced due to Home Front Command guidelines and remote work is not possible, employer participation will be provided at 100% for the first two weeks (02/28-03/14), and at 80% for the following two weeks (03/15-03/28).

– Agreed populations (parents and special populations): Parents of children up to the age of 14 who were absent for supervision due to the closure of educational institutions, people with disabilities or their relatives, and additional populations to be agreed upon, will be entitled to participation at a rate of 90% in the first two weeks and 75% in the following two weeks.

– Evacuees: Employees who were evacuated from their residences by order of a qualified authority due to damage to their homes will be entitled to 100% employer participation for 8 days from the date of evacuation.

– Employees staying abroad: An employee whose return to Israel was delayed due to flight cancellations due to the security situation will be entitled to a contribution of 80% in the first two weeks and 50% in the following two weeks.

– Other circumstances: In other cases that are not included in the above circumstances, a participation of 60% will be provided in the first two weeks and 50% in the following two weeks.

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