Are employees in Israel entitled to a 13th-month salary or annual bonus?

Wages in Israel are governed by the Wage Protection Law 5718-1958 and a set of specific entitlements, but none of them creates a thirteenth monthly payment. What the law does require every year is recuperation pay, due to an employee after one year of service under a general extension order, calculated as a set number of days multiplied by a daily rate that is updated periodically. Beyond that, the recurring mandatory costs are pension contributions, accrued vacation, and, where it applies, a study fund (keren hishtalmut). A discretionary or performance bonus becomes a legal obligation only once it is promised in writing or has hardened into an established, binding practice.

Foreign employees and expats sometimes expect a 13th cheque because their home country guarantees one, so it helps to read the Israeli offer for what it actually promises. Check whether the contract or the sector's collective agreement includes a bonus, and whether recuperation pay, pension, and a study fund are provided, because those, not a 13th salary, are where the extra value sits. If a bonus is described as fully discretionary, an employer can usually decline to pay it, but a bonus paid consistently over time can turn into an enforceable term. For the wider set of statutory entitlements, see Employment Law in Israel.

From the full guide: Employment Law in Israel for Foreign Companies and Expats

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