Travel expenses

Effective from January 1, 2025, every employee in Israel is entitled to reimbursement of travel expenses up to a ceiling of NIS 22.60 for each workday on which they use transportation, excluding transportation provided by the employer. This, provided that the workplace is more than 500 meters or 2 bus stops away. The law allows for the inclusion of travel expenses in the monthly salary, but only if there is a signed agreement between employer and employee. In order to calculate the monthly travel expense reimbursement, one must multiply the employee's actual number of workdays by the daily cost of travel, up to the aforementioned ceiling of NIS 22.60 per day. It is important to note that the employer may provide the employee with reimbursement according to a monthly pass rate or according to an agreement exceeding the minimum, in accordance with a personal employment contract.