Severance Pay — The Right Everyone Needs to Know
Every employee dismissed after one full year of work is entitled to severance: one month's last salary per year of work — calculated on last salary, not average.
What is Severance Pay?
Payment that an employer must make to a dismissed employee. Formula: last monthly salary × years worked.
Example: 5 years at 8,000 ILS/month = 40,000 ILS. Calculated on last salary — not average. If your salary increased, this helps you.
When Are You Entitled?
Dismissal (always, after 1 year). Death (to heirs). Disability (cannot continue working). Resignation (usually not — exceptions: illness, harassment).
Where Is the Money?
Since 2008, employers must pay pension fund contributions — part of these are "severance." Check your pay slip: "pitzuim" (severance) line.
If Refused
Complaint to Labour Commissioner: 02-6667222 | Labour Court claim (no lawyer needed) | Kav LaOved: 1-800-354-354
Tip for Ethiopian-Israelis
If you worked "off the books" (no pay slip) — you are still entitled. Prove employment with: bank transfers, witnesses, WhatsApp messages.
📞 1-800-354-354
This right in your city
- Jerusalem
- Beit Shemesh
- Ma'ale Adumim
- Netanya
- Rishon LeZion
- Rehovot
- Tel Aviv
- Petach Tikva
- Lod
- Ramla
- Ashdod
- Holon
- Bat Yam
- Yavne
- Kfar Saba
- Herzliya
- Modi'in
- Ashkelon
- Kiryat Gat
- Be'er Sheva
- Kiryat Malakhi
- Sderot
- Dimona
- Yerucham
- Eilat
- Netivot
- Arad
- Haifa
- Kiryat Ata
- Kiryat Bialik
- Carmiel
- Afula
- Acre
- Nahariya
- Kiryat Shmona
- Tiberias
- Safed
- Nof HaGalil
- Ma'alot-Tarshiha
Related rights
Employment Rights for People with Disabilities
The Equal Rights for Persons with Disabilities Law requires employers to make reasonable accommodations. Entitlements include a mobility allowance, tax benefits, and NII cost reduction.
Rights Against Employment Discrimination
Every employee in Israel — including new immigrants and Ethiopian-Israelis — is protected against discrimination based on race, nationality, origin, and more.
Foreign Worker Rights — Including Undocumented Workers
Undocumented workers are entitled to minimum wage, basic working conditions and cannot be deported for filing a complaint — even if residing illegally.
Right to Legal Translation — Navigating Courts in Hebrew
Every defendant who does not have command of Hebrew is entitled to a free interpreter in all court proceedings. A constitutional right many are unaware of.