RIGHTS
Severance Pay in Israel - Complete Guide
Basic formula: Last salary x years of employment = severance pay
Example: 10,000 NIS salary x 3 years = 30,000 NIS
When Are You Entitled?
| Situation | Entitled? |
|---|---|
| Fired | Yes - always (after 1 year) |
| Resigned | Depends - only in certain circumstances |
| Contract ended | Yes - if not renewed |
| Retirement | Yes |
Resignation That Entitles Severance
- Relocation due to marriage
- Health condition (employee or family member)
- Significant worsening of work conditions
- Non-payment of salary
- After childbirth (up to 9 months)
- Relocation to agricultural settlement
- Resignation after age 60 (men) / 62 (women)
Section 14 Explained
Section 14 of the Severance Pay Law states that employer contributions to pension/provident funds replace severance pay obligations. In most Israeli workplaces, Section 14 applies, meaning your severance is already accumulating in your pension fund.
Plan with ALMO AI
Received a termination letter? Add reminders to ALMO AI: deadline for severance payment (15 days), meeting with accountant, and contacting National Insurance.
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