Despite the fact that many places of employment in Israel give x number of sick days per year to each employee, the law actually is not quite as generous to the sick employee. By law, the first day an employee is sick and out of the office, he does not get paid anything. The second and third days he gets partial payment and, I think, from the fourth day and onward the sick employee gets full payment.

MKs Uri Maklev and Moshe Gafni (UTJ) have proposed a law that would deal with changing one aspect of this arrangement. According to the proposal, the sick employee would not "lose" a sick day for the first day of his sickness, for which he was not paid, and for the second and third days the employee would only lose partial sick days.

Basically, any sick day the employee is not paid for would not be knocked off the employee's yearly count of available sick days.

The proposal was passed through the Ministerial Legislative Committee and will move to the Knesset for voting.
source: Kooker