How to Pay Sick Leave and Travel Expenses for a Permanent Nanny

According to Israeli legislation as of March 19, 2026, an employer is required to pay for travel to the workplace and compensate for sick days if the nanny has worked for the family for more than 30 days. Adhering to these rules not only protects you from fines but also helps build a relationship of trust with the professional caring for your children.

Why an employment contract with a nanny is the foundation of your security

A written contract is the only tool that clearly defines the rights of the employee and the obligations of the employer, eliminating misunderstandings and conflicts. In Israel, the relationship between a family and domestic staff is governed by labor law, so it is important to record the salary amount, working hours, and conditions for compensating additional expenses before starting the collaboration.

Families in Tel Aviv or Jerusalem often make the mistake of agreeing only verbally. In the event of a dispute or an audit from Bituah Leumi, the lack of a paper contract leaves the employer vulnerable. Experts at EzraHome.co.il help families draft legally sound contracts that account for all the nuances of Israeli law, ensuring everything is in order.

How is sick leave calculated for a nanny?

Sick pay for a nanny in Israel is calculated based on seniority and the actual number of days missed, in accordance with the "Sick Pay Law." Usually, no payment is made for the first day of illness, 50% is paid for the second and third days, and 100% of the daily wage is paid from the fourth day onwards (provided a medical certificate is submitted).

Case study: A family from Haifa found themselves in a situation where their permanent nanny was sick for 5 days. To avoid stress and calculation errors, the employers turned to our EzraHome knowledge base. We helped them accurately calculate the sum based on the medical certificate (ishur machala) and correctly reflect it in the payroll to avoid issues with the tax authorities.

Table: Sick Leave Payment Scheme in Israel

How to properly pay for a nanny's travel expenses?

An employer is required to reimburse the nanny for public transport expenses at the rate of the cheapest fare, but not exceeding the limit set by law. In 2026, this limit is equal to the cost of a daily transit pass, provided the employee does not live within walking distance of your home.

• If the nanny commutes by bus or train, you are required to pay the amount of a "hodesh hofshi" (monthly pass) or the daily equivalent.
• The travel allowance is not subject to income tax but is part of the compensation package.
• If you provide the nanny with a car or drive her yourself, no travel reimbursement is required (this must be stated in the contract).

Bituah Leumi: Employer Obligations

Registration with Bituah Leumi is a legal obligation for any private employer in Israel, which protects you from significant risks in case of accidents. Even if you hire an assistant for just a few hours a week, you are required to open a "tik ma'asik" (employer file) and make quarterly contributions.

Many families fear bureaucracy, but EzraHome provides consulting support: we explain how to register, how to file reports, and why cutting corners on insurance contributions can lead to massive fines. The safety of your home begins with the legality of your relationship with your staff.

Frequently Asked Questions (FAQ)

Am I required to pay for convalescence leave (dmei havra'a)?

Yes, after the first year of employment, you are required to pay the nanny an annual convalescence allowance, based on the number of days worked.

Do I need to pay for pension contributions for a nanny?

Yes, pension insurance is mandatory in Israel for all employees working more than a certain number of hours per month.

Does a nanny have the right to demand travel pay if she lives in the next building?

No, if the nanny walks to work, travel compensation is not provided by law.

Does seniority affect the number of vacation days?

Yes, the number of paid vacation days increases proportionally with the years of service in your family.

Can I just pay a higher "net" salary and ignore taxes?

No, this is illegal and creates risks for both parties, including a lack of social security for the nanny and legal liability for you in the event of an injury.

Conclusion

Hiring a nanny is not just about finding someone you trust with your children, but also about entering into an employment relationship that requires responsibility. Understanding the rules for sick pay, travel expenses, and social contributions in Israel makes you a competent employer. If you want to save time on paperwork and finding a reliable professional, contact EzraHome.co.il. We will help you find the ideal assistant and process all documents according to the law, ensuring peace of mind for your family.