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Employment in Israel

Travel Expenses in Israeli Labor Law

As an employee in Israel, you are legally entitled to a refund on travel expenses unless your employer arranges transportation for you. The refund is for the amount it would cost you to get to work and back on public transportation, up to a cap of 22.60 NIS per day or the price of a monthly ticket, whichever amount is lower. This amount is calculated according to the amount you would be charged and takes into account any discount you might have, such as a senior citizen or student rate. You cannot waive the right to receive travel expenses and the refund is considered taxable income.

If you need to get to work or back home at times when there is no public transportation, such as national holidays, Shabbat or late at night, you are entitled to 22.60 NIS for each of those days, unless a different arrangement was made in the employment contract.

When you live 500 meters or less from work, you don’t get travel expenses, because it is assumed that you can walk to work. A person who is unable to walk, such as someone with a physical handicap, is an exception to this case. If you are entitled to free rides on public transportation (such as if you’re 75+ years old) you will not receive travel expenses.

Travel expenses are paid only on days when you come to work. If you stay at the job location on some nights (for instance, a hotel employee or a security guard), you would only receive a refund for days you actually went home.

When public transportation isn’t used, for example, if you decide to walk or come in your car, you are still entitled to the refund. 

You don’t need to take any steps to get your travel expenses refunded; this is taken care of by the employer, based on the home address you provided them. As always, you should check your pay stubs and make sure this payment is included in your salary.

Travel time

Generally, travel to and from work is not considered work time and is not paid. Even if you travel abroad for business, you are only entitled to payment for time you’re on the flight if it’s during hours when you would usually be working. 

The exception to this rule is if you were asked by your employer to travel to a specific location, such as a client’s office, in which case, travel time would be considered work time. 

You and your employer can, of course, make a different agreement, in which travel time is included in your work hours. You might want to bring this up with your employer if you frequently travel outside of regular work hours.

Food and accommodations

Legally, employers don’t have to reimburse expenses on business trips abroad or inside Israel, but many companies have policies that cover food and accommodations, either according to receipts saved by the employee or by an honor system. This refund is called Eshel (an acronym for food, drink and sleep). Before going on a business trip, clarify the policy with HR and be sure to keep records and save receipts for relevant expenses.