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EmploymentIsrael Labor Laws: Severance Pay - Pitzuim

Israel Labor Laws: Severance Pay – Pitzuim

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Last Updated on October 23, 2021

Severance pay (Pitzuim) laws in Israel.

Hebrew: פיצויי פיטורין

Severance Pay pitzuim

Getting fired from your job

After all the hard work you put in to get a job in Israel your worst nightmare has come true – you have been fired from your job. Are you entitled to pitzuim – severance pay?

Are you entitled to severance pay?

Any employee who has worked for more than one year at his/her current place of employment is entitled to severance pay (pitzuim) in the case that his employment contract was terminated by the employer.

How much severance pay am I entitled to?

You are entitled to one months salary for every year of work completed including a proportionate amount for any additional months. The severance pay is calculated based on your last monthly salary.

Example 1:

Your current monthly wage = 6,000 shekels

Years worked = 4

Total entitlement = 24,000 shekels

Example 2:

Your current monthly wage = 10,000 shekels

Years worked = 2 years and 6 months

Total entitlement = 25,000 shekels

Severance pay upon resignation

An employee is NOT entitled to severance pay if he/she resigned however the following circumstances may entitle you to receive severance pay:

  • Death or insolvency of the employer
  • Death of the employee
  • Health or disability of an employee of his/her spouse
  • Resignation following the birth or adoption of a child within 9 months of the birth or adoption. One parent only is entitled to severance pay.
  • Resignation following relocation.
  • Resignation in order to join the police or prison services.
  • Resignation in order to fulfill your duty to serve in the Israel Defense Force (IDF)
  • Severe deterioration in your working conditions caused by the employer for example: downgrading your position within the company, reducing your salary, failure to pay cost of living increases, repeated delays in paying your salary etc.

If your employer fails to pay your compensation you can file a complaint with the Israel Labor Court. The claim must be filed within one year from the date of obligation of payment.

Please note the content of these articles are for information purposes only and do note replace the current law.  In case of a dispute consult with a lawyer.  For more information consult with Bituach Leumi (National Insurance Institute) or  the website of the Ministry of Trade, Industry & Labor.
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