What is Dmei Havraa and How Do I Get It?

What is Dmei Havraa?
It's summer time, so that means that it’s time for that yearly bonus called Dmei Havraa!

Dmei Havraa is money that every place of employment is legally required to provide to pay for an employee's vacation and vacation expenses, regardless of whether they use it for that purpose. If you have been working somewhere for at least a year, make sure to check your paycheck for your Dmei Havraa!

An employee is entitled to the payment only after completing their first year of work in the workplace. After the employee has completed a year of work with the employer, they are entitled to retroactive Dmei Havraa, starting from their first day of work.

How Much Do I Get?
The vacation allowance is calculated based on the seniority of the employee and a specific amount set every year based on the increase of the consumer price index. Private sector employees are entitled to 378 nis per day, while public sector employees are entitled to 471.40 nis per day. This amount is then multiplied by the number of days you are entitled to based on your seniority at work, such as 5 days for your first complete year, 6 days for your second & third year and so on.

You can see the calculation here: https://www.kolzchut.org.il/he

If you work part-time or are paid per hour then your pay will be calculated differently, so don't be disappointed if the amount doesn’t look the same on your paycheck as on your calculator.

Please note that on 13th July, 2023, a notice was published that the Minister of Labor intends to sign an expansion order according to which the Dmei Havraa for private sector employees will increase to NIS 418 per day, but this has not yet been confirmed.

How Do I Get It?
Dmei Havraa can be paid out to the employees in three different ways: yearly, monthly, or by financing a vacation. Usually, companies choose to pay in one lump sump and include it as a supplement to one of the summer paychecks (June-September). If the employer chooses to pay Dmei Havraa monthly, this must be explicitly agreed to between the employer and employee and must included in the contract.

Dmei Havraa is subject to income tax, Bituach Leumi, and health insurance.

Enjoy your vacation allowance!

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