Annual Leave, Sick Pay, Havra'a and Working Hours: Israel vs Italy

Leave and working time look similar on paper in Israel and Italy, but the Italian rules are more generous from day one and mostly fixed by statute and the CCNL. Israeli managers should also adjust for a different calendar: Italian public holidays, a Monday–Friday week and August shutdowns. Overview on Italy vs Israel .

Annual leave  

Israel. The Annual Leave Law gives a minimum number of paid vacation days that grows with seniority, counted differently for five-day and six-day weeks. Unused days can be carried over within limits and paid out at the end of employment.

Italy. At least four weeks of paid leave a year from the first year (Legislative Decree 66/2003), at least two weeks taken in the year accrued and the rest within 18 months. Leave cannot be paid out except at the end of employment. On top, most CCNLs add ROL/permessi, paid leave hours that often amount to several extra days a year. Many companies close for part of August and between Christmas and New Year, using leave.

Public holidays  

Israel follows the Jewish holiday calendar for rest days. Italy has 12 national holidays that can fall on a workday from 2026, including 4 October restored by Law 151/2025, plus Easter Monday and the local patron saint’s day. An Italian employee is not entitled to Israeli holidays unless you grant them, and you cannot replace Italian holidays with Israeli ones.

Recuperation pay vs the 13th month  

Israeli employees with at least one year of service receive recuperation pay (dmei havra’a), a number of days per year by seniority multiplied by a daily rate set by extension order.

Italy has no recuperation pay. Instead, almost every CCNL provides a 13th month paid in December, and many (for example commerce) a 14th month paid in July. These are part of the RAL, so when you compare offers, compare annual totals.

Sick pay  

Israel. Under the Sick Pay Law, sick days accrue monthly up to a cap. Typically the first day is unpaid, days two and three are paid at 50% and from day four at 100%, funded by the employer.

Italy. Sickness is certified online by the doctor and paid from the first day. For many employees INPS pays 50% from day 4 to day 20 and 66.66% from day 21 up to 180 days, and the CCNL makes the employer top up, often to 100%; days 1–3 are paid by the employer under most CCNLs. White-collar staff in industry get no INPS sick pay: the employer pays per the CCNL. The job is protected for a period (comporto) set by the CCNL; dismissal for illness before it ends is void.

Working hours  

Italy. Standard week of 40 hours (CCNLs can set less), an average maximum of 48 hours including overtime over a reference period, 11 consecutive hours of daily rest and 24 hours weekly rest, and overtime capped at 250 hours a year unless the CCNL says otherwise. Overtime premiums come from the CCNL. Senior employees (quadri, dirigenti) have more flexibility, but the 48-hour average still applies to most.

Side by side  

Managing across time zones and calendars  

Italy and Israel are usually one hour apart, but weekends differ. An Italian employee works Monday–Friday and is off Saturday and Sunday. Meetings on Friday afternoon Israel time are normal working time in Italy; Sunday meetings are not. Leave planning should start from the Italian calendar.

Common questions from Israeli managers  

Can we pay out unused leave every year, as some Israeli companies do? No. In Italy the four-week minimum must be taken as time off; it can only be paid out when employment ends. Unused ROL hours are usually paid out under the CCNL rules, but the statutory leave is not.

Can an Italian employee work on an Italian public holiday and take Yom Kippur instead? Only by agreement and with the holiday paid as the CCNL requires. You cannot impose a swap, and work on a public holiday normally carries a premium.

Do we need to track hours for a senior engineer? Yes, in principle. Italian employers must record working time for payroll purposes (the Libro Unico del Lavoro). Smart working agreements can give flexibility on when and where, but the 48-hour average and rest rules still apply.

What about remote work from Israel? An Italian employee who works temporarily from abroad raises tax and social security questions. Short trips are fine; longer stays should be agreed in advance with the employer of record.

Is there a right to disconnect? Italian smart working agreements must define rest periods and the measures that ensure disconnection. Expect your Italian team to protect evenings and weekends more than an Israeli startup team might.

What this means if you hire through an EOR  

The EOR tracks leave and ROL in payroll, processes sick certificates with INPS, pays the 13th and 14th month and applies the CCNL overtime rules. You approve leave and manage the work. Remember to budget for August.

See Italian employment contracts , the cost calculator , Italy vs your country or contact us .

Related guides for Israeli companies  

• Maternity and parental leave
• Bituach Leumi and pensia hova vs INPS
• Notice of employment terms vs the Italian contract

General information, not legal advice.