A bartender injured in a car accident while commuting to her job challenged the National Insurance Institute after it based her injury payments solely on documented wages. The Beersheba District Labour Court ruled that cash tips must be factored into income assessments when properly evidenced.

The decision carries weight for workers in hospitality and service sectors where gratuities often form a major share of earnings. The bartender had worked at an event venue for four months when the accident occurred. The institute approved the incident as work-related yet set her monthly stipend at roughly 2,300 NIS using only payslip figures.

Tips formed a regular part of earnings despite lack of records

She appealed, explaining that customers handed her an average of 300 NIS in tips each shift, money that never appeared on official documents. The institute countered that no objective proof existed, noting the amounts varied and bypassed the employer register entirely.

Judges found the bartender credible after hearing her account and that of a colleague who worked the same shifts. The employer also confirmed that tips were collected and split equally among staff at shift end, even without formal tracking.

Ruling emphasizes actual earnings over paperwork

The court held that direct cash payments from patrons do not automatically exclude tips from wage calculations. It accepted an average of 250 NIS per shift rather than the full 300 NIS claimed, adding 5,500 NIS across 22 shifts to her pre-accident quarter income. Benefits must now be recalculated, and the institute was ordered to cover 4,000 NIS in legal costs.

Attorney Ali Kamel noted that labour courts increasingly prioritize economic reality over incomplete employer records. He stressed that claimants must still supply sufficient evidence to support tip amounts rather than expecting automatic inclusion.