Israel’s wave of high-tech layoffs is sending many workers who were used to monthly salaries of 30,000 shekels or more into unfamiliar territory: registering with the Employment Service, filing a claim for unemployment benefits and figuring out how much money will actually arrive in their bank account.
For laid-off tech employees, the answer is often far less than expected. Israel’s unemployment benefit system includes caps, waiting periods and age-based limits that can turn a high salary into a much more modest allowance.
Here is a guide, based on National Insurance Institute figures, to the key questions facing workers after dismissal.
Who is eligible for unemployment benefits?
The basic eligibility requirements include five conditions: Israeli residency, age 20 to 67, termination of employment through dismissal, end of contract, resignation or unpaid leave initiated by the employer, registration with the Employment Service and completion of the required qualifying work period.
That qualifying period means at least 12 months of salaried employment within the 18 months preceding registration with the Employment Service. The months do not have to be consecutive or with the same employer, and even one day of work in a given month counts as a full month of employment.
I was fired. When will I receive my first payment?
If you were dismissed and registered with the Employment Service, you are eligible for unemployment benefits from the first day you report to the bureau. If you received legal advance notice of dismissal and continued receiving salary until the actual end of employment, that period does not qualify for unemployment benefits.
The first day of registration is a key date: it determines when eligibility begins and serves as the basis for calculating accumulated unemployment days.
What is the difference between dismissal and resignation?
A dismissed worker is eligible for unemployment benefits from the first day of registration. A person who resigned voluntarily must wait 90 days from the end of employment before payments begin.
If the resignation was for a justified reason, such as a significant worsening of working conditions, the health condition of the worker or a close family member, or relocation that increases the distance from work by more than 60 kilometers, payment may begin from the first day, subject to supporting documents.
I was placed on unpaid leave by the company. Am I eligible?
Unpaid leave imposed by the employer entitles the worker to unemployment benefits from the first day of registration, provided the unpaid leave lasts at least 30 days.
A worker who goes on unpaid leave voluntarily, even for a justified reason, is not eligible for unemployment benefits. If the worker has accumulated vacation days with the employer, payment will begin only after those vacation days are used up, although there is no obligation to actually use them.
How much money will I actually receive?
This is where the main shock for tech workers comes in. The benefit rate is not linear: the higher the previous salary, the lower the replacement rate.
Daily unemployment benefits are calculated according to age and income subject to insurance contributions during the six full months preceding the first registration with the Employment Service. The monthly amount is the daily benefit multiplied by the number of reporting days.
According to National Insurance Institute tables updated in January 2026, a worker aged 28 or older who earned 20,000 shekels gross per month will receive about 9,502 shekels a month, or about 48% of salary. On a salary of 25,000 shekels, the benefit will be about 11,002 shekels, or 44%. On a salary of 30,000 shekels or more, the allowance will hit the maximum cap.
Is there a cap on unemployment benefits?
Yes. The maximum daily unemployment benefit for the first 125 payment days is 550.76 shekels. From the 126th day onward, the daily cap drops to 367.17 shekels.
In monthly terms, that means about 13,769 shekels a month in the first period, regardless of whether the worker previously earned 35,000 or 60,000 shekels. From the 126th day, the amount falls to about 9,179 shekels a month. For workers aged 28 and older, the cap is reached at a monthly salary of 34,225 shekels.
How long will I receive unemployment benefits?
The maximum number of days is determined by age and number of dependents. Up to age 25, the maximum is 50 days. Ages 25 to 28 receive 67 days. Ages 28 to 35 receive 100 days. Ages 35 to 45 receive 138 days. From age 45 and older, the maximum is 175 days.
The days can be used over a 12-month period beginning on the first day of the month in which the worker first registered.
In practice, most tech workers in their 30s and 40s will receive payments for about five to seven months.
What is deducted from the payment?
Unemployment benefits are subject to income tax, minimum National Insurance contributions of 48 shekels and health insurance contributions based on the allowance amount.
That means the gross amount shown in the tables is not the amount that will reach the bank account. Workers should expect to receive about 15% to 25% less, depending on income level and tax brackets.
Do severance payments affect unemployment benefits?
Not directly. Severance pay from an employer is not considered income that is deducted from unemployment benefits.
However, if the unemployed person has income during the unemployment period from work as an employee, self-employment or a pension, those amounts will be deducted from the unemployment benefits owed.
This is not my first time unemployed. Are there limits?
For an unemployed person under 40 who files more than one claim within four years, the total number of benefit days across all claims cannot exceed 180% of the maximum number of days.
In other words, if the worker used all available days in the first claim, the second claim will provide only 80% of the quota. After that, the worker will not be eligible again until four years have passed from the start of the previous eligibility period.
A person who files a claim year after year will have the number of days calculated each month according to unemployment days paid in the previous 11 months. A tech worker who changes jobs frequently may discover that they fall into the category of a “repeat unemployed” claimant, with direct implications for future eligibility.
How do I file a claim?
The first step is online registration on the Employment Service website, followed by reporting to the bureau nearest the worker’s place of residence within 14 days of registration and filing an unemployment benefits claim, Form 1500, with the National Insurance Institute.
What happens after I use all my days?
If you have received unemployment benefits for all the days to which you are entitled and still have not found work, you can check eligibility for income support.
For tech workers, however, this is not a significant safety net. The income and asset tests are strict and include checks of vehicles, savings and pension rights.
Ultimately, Israel’s unemployment benefits system was not designed for high earners. A tech worker used to a gross monthly salary of 35,000 shekels will quickly discover that the allowance covers only a small part of monthly expenses, and that the number of months available is limited. For workers under 35, and especially those under 28, the reduction is particularly significant, both in the number of eligible days and in the share of salary replaced by the benefit.