Law on Freezing and Reducing Recreation Pay in 2024 to Fund Benefits for Reserve Soldiers, 5784-2024

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In 2024, the rate for a recuperation (havra'a) day will not be updated. In addition, one recuperation day will be cut for everyone entitled to recuperation pay. This cut is meant to fund benefits for reservists. The freeze and the cut will also apply to career soldiers and to office holders who are not employees, with adjustments to the calculation. For employees whose average income does not exceed 6,000 shekels and who are entitled to five recuperation days, only half a recuperation day will be cut. The employer will transfer to the assessing officer the amount cut from recuperation pay, plus mandatory payments for National Insurance, VAT and a study fund. If the employer was supposed to update the recuperation day rate in 2024, it will also transfer to the assessing officer the amount it saved by not updating the rate, plus the mandatory payments that apply to it. The law details how to calculate the cut in different cases, such as annual payment, monthly payment, a benefit in kind, a part-time employee, an hourly employee, or an employee who does not work a full year. Provisions of a collective agreement signed by the Histadrut on cutting recuperation pay will apply instead of the law's provisions, unless the arrangement in the law is better for the employee. The cut in recuperation pay will not affect the calculation of other rights, such as pension payments. The law prevents getting around the set obligations, and includes powers to apply the Budget Foundations Law to public employers that act against its provisions. By the end of 2026, a report will be submitted on the use of the budget for reservist benefits and on the amounts collected by the assessing officer.