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Working Two Jobs and Going on Leave? Here's How to Save Money

Adv. Sasha Bogatirov·March 31, 2026·7 min read
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Is this relevant to you? If you're working two jobs or have a side business and went on leave, you might not be receiving the unemployment benefits you expect.

Key takeaway

The most important point is that every shekel you earn while on leave is deducted from your unemployment benefits, regardless of the income source.

Working Two Jobs and Going on Leave

Imagine the following situation: you're working two jobs, maybe even running a side business, and suddenly you find yourself on unpaid leave due to the war. You thought this would impact your income, but you didn't expect what would happen with your unemployment benefits. Instead of receiving the full amount, you discover that every shekel you continue to earn is deducted from your unemployment benefits, regardless of where the income comes from. This situation can lead to unpleasant surprises. For example, if you worked on a certain day and earned 100 shekels, and your unemployment benefits are 150 shekels per day, you will only receive 50 shekels for that day. And if you worked for a daily wage of 200 shekels, you will receive nothing for that day. Confusing? Definitely.

The most important point is that every shekel you earn while on leave is deducted from your unemployment benefits, regardless of the income source.

What the Law Actually Looks At

Israeli law states that any income you earn while on unpaid leave (known as "chal'at") is deducted from your unemployment benefits. This income can come from a second job, your side business, or even your pension. This law is designed to prevent a situation where people receive double payments that unfairly inflate their income. One of the most common cases is when people work part-time in addition to their main job. If the pay from the part-time job is lower than unemployment benefits, it's advisable to ask the employment service not to register unemployment days for those workdays. This way, you can preserve your quota of unemployment days for the future and not lose the small difference. This law requires you to be aware of your income and plan your financial path accordingly. Every shekel you earn beyond the unemployment benefits can affect the amounts you receive, so it's important to know how to calculate this impact in advance.

When Is It Relevant — Checklist

  • You worked two jobs and went on leave.
  • You have a side business and additional income.
  • You receive a pension along with unemployment benefits.
  • Your daily wage from a part-time job is lower than unemployment benefits.
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The Specific Law That Applies

חוק רלוונטי
National Insurance Law
Defines the conditions for receiving unemployment benefits
Any additional income is deducted from unemployment benefits

The National Insurance Law dictates the conditions under which one can receive unemployment benefits in Israel. The law clarifies that any additional income, whether from another job or a side business, will affect the amount of unemployment benefits you are entitled to. This means you must be aware that every shekel you earn while on leave can reduce the amount you receive from the state. The consequence of violating this law could include returning funds you received unlawfully, and in some cases, additional penalties. Therefore, it's crucial to ensure you are reporting all your income correctly.

Questions Everyone Asks — and No One Asks the Lawyer

Can I continue working and keep my unemployment benefits?
You can continue working, but any income you receive will reduce your unemployment benefits. It's worth checking the impact before making a decision.
What counts as income deducted from unemployment benefits?
Any income, including from a job, a side business, or a pension, is deducted from your unemployment benefits.
What to do if I've already received too much unemployment benefit?
It's best to contact the employment service and report the mistake. The first step is to adjust the payment to avoid penalties.
Are there penalties for receiving unemployment benefits unlawfully?
Yes, there's a risk of financial returns and even additional penalties depending on the severity of the case.
How can I protect myself going forward?
It's important to track your income and ensure you are correctly reporting any additional income.

Real Situations — Which Side of the Line Are You On?

  • A store manager who went on leave and kept their side business active. Full deduction of unemployment benefits.
  • A part-time worker with a salary lower than unemployment benefits who asked not to register unemployment days on workdays. Preserved their quota of days.
  • A pensioner working an additional job. Every shekel is deducted from unemployment benefits.

What to Do Right Now

The first step is to review your income and see how it affects the unemployment benefits you're receiving. If there are doubts or uncertainties, seek legal advice to understand your rights and obligations. If you do nothing, you might find yourself returning funds to the state or experiencing significant cuts in your unemployment benefits. To avoid this situation, it's recommended to check your income and report any changes.

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