The amended law for the working disabled - Incentive pension

The incentive pension replaces the disability pension and is paid automatically to someone who received a disability pension for at least 12 consecutive months and is working, and whose income from that work exceeds the amount specified in the law.

You cannot receive both a disability pension and an incentive pension at the same time.

The incentive pension replaces the disability pension and is automatically paid to someone who is working and meets the following two conditions:

a.   He received a disability pension for a least 12 consecutive months.
b.   His income from work exceeds the amount specified in the law. This amount is not uniform and is determined by the severity of the medical impairment and the period of entitlement to a disability pension:

         The amount specified in the law for a person with a severe disability (a person for whom a medical disability of at least 70% was established, or a medical disability of 40% due to mental retardation or psychotic disorders was established in the medical examinations, according to Section 33), or for a person with prolonged entitlement (a person who was entitled to a pension for at least five years (60 months), during the seven years that preceded August 1, 2009) is 60% of the average wage, i.e., NIS 5,171 (as of 01.01.2012) .
    The amount specified in the law for all other disabled persons  is 45% of the average wage, i.e., NIS 3,879 (as of 01.01.2012) .

When you receive an incentive pension, what happens to your other benefits?

1.   Increment for a spouse and children (dependents’ increment) - will be gradually reduced, starting with income from work that totals NIS 7,762.
2.   Additional monthly pension - A year from the date on which you begin to receive the incentive pension, the additional monthly pension will be gradually reduced as follows, over the course of four years:
Period                             Percentage of additional monthly pension
First year                         100%
Second year                     75%
Third year                         50%
Fourth year                       25%
3.   Fringe benefits - during the first three years there will be no change in your entitlement to fringe benefits. After three years, the benefits will be given in proportion to the amount of the pension.