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| Employers |
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Under Israeli law, all employers must regularly file a report with the National Insurance Institute concerning their employees and must pay national and health insurance contributions to the NII for them. Under law, employers who fail to file a report or to pay these contributions by the prescribed deadline will be subject to fines and linkage. The NII is entitled to launch legal action against them and to demand that they reimburse the NII for the allowances that it has paid or will pay in the future to their employees.
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| Who is considered an employer? | |
| You are an employer if you have an employer-employee relationship with a worker who performs a job for you.
Although Section 1 of the National Insurance Law refers to “employer” and “employee,” these terms are not defined by law because work relations by their very nature are dynamic and constantly change. Thus, in determining who is an employee and who is an employer, the NII bases itself on principles and criteria established from time to time by the National Labor Court and the Israel Supreme Court in their major rulings. |
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| Opening a deductions file | |
| If you a new employer who employs a worker or workers in your business, you must open a deductions file with the income tax authorities. After receiving information on the opening of a deductions file and the file number from the income tax authorities, the NII will automatically open a deductions file for you as a new employer.
After the opening of your deductions file at the NII, you will receive by regular mail:
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Notification regarding the opening of your file, the number of employees you have reported and the insurance rates you must pay for them
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A questionnaire that asks for additional information and which you must fill out and return to the NII
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A form for reporting on the workers you employ (form 102) that you must fill out and use when paying your insurance contributions. |
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| Maximum income for the payment of insurance contributions | |
| The maximum income for the payment of insurance contributions is the “ceiling” of wages for which insurance contributions must be paid. That part of the worker’s wages which is less than or equal to the “ceiling” is subject to the payment of national and health insurance contributions, while that part of those wages which exceeds the “ceiling” is exempt.
The maximum income for the payment of insurance contributions for an employee is NIS 41,850 (as of 01.01.2012) . |
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| Minimum income for the payment of insurance contributions | |
If the income of one of your employees is equal to or less than the minimum income for the payment of insurance contributions, you will pay for that employee the same amount of contributions paid for employees whose income is the minimum. The minimum income for the payment of national and health insurance contributions is equal to the minimum wage, as specified in the Minimum Wage Law, 5747 – 1987.
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The minimum wage per month for a full-time employee is NIS 4,100.00 (as of 07.01.2011) .
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The minimum wage per hour for an employee who is paid by the hour is NIS 22.04 (as of 07.01.2011) . |
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| Income for which insurance contributions must be paid | |
| An employee’s income for which national and health insurance contributions must be paid is that income on which income tax must be paid, under Section 2(2) of the Income Tax Directive – in other words, the employee’s wages and all benefits paid to the employee, whether in cash form or its equivalent.
These benefits include, for example, meals for employees and discounts that the company grants its employees such as discounted airline tickets (that airlines give to their employees) and free transportation (that bus companies give to their employees). |
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| Employment of a foreign resident | |
If you are an employer who employs someone who is not an Israeli resident (with the exception of domestic workers), you are considered the employer of a foreign worker and you must file a report on that worker and pay national insurance contributions for him or her in accordance with the regulations specified in this section.
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If you employ a foreign resident as a domestic workers, you must file a report on him or her as specified in the section Employers of domestic workers.
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If you employ a resident of the Palestinian Authority or a resident of Judea and Samaria in Israel, you must report on that employee to the Payments Section of the Interior Ministry’s Population, Immigration and Border Crossings Authority. For details, see the Ministry of Industry, Trade and Labor website.
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If you employ a resident of the Palestinian Authority or a resident of Judea and Samaria in a settlement or a military site (in the area), you must report on that employee to the NII, in accordance with the regulations specified in this section. |
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| Employment of persons with disabilities | |
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The NII trains people with disabilities for work.
Dear Employer,
Do you need a committed, highly motivated worker? Someone who has received the necessary education and training for work. Do you want your business to thrive and prosper thanks to top-class employees?
The NII’s Rehabilitation Division helps in the rehabilitation of persons with a physical, sensory or emotional disability and in the rehabilitation of widows and widowers, and it also trains these rehabilitees for entry into the open job market.
We rehabilitate persons who are suitable for work in the open job market. After they have been trained, their medical disability is no longer a barrier to their integration into work.
A rehabilitation officer works closely with the rehabilitee during the entire rehabilitation period. The rehabilitation process includes diagnosis, vocational training in accordance with the rehabilitee’s abilities, inclinations and limitations. Once the rehabilitation process is over, the rehabilitation officer helps in the rehabilitee’s placement in work.
At the very beginning of the rehabilitation process, we try to direct rehabilitees to occupations that are in demand in the job market and which are suited to their abilities.
We see to it that rehabilitees attend educational institutions that are under the supervision of government agencies or which are recognized as leaders in the vocational field.
Rehabilitees with a high level of professionalism
Some of the people who have been rehabilitated with the help of the NII’s Rehabilitation Division have college degrees in such fields as engineering, computer science, law, economics, social work and education. Other rehabilitees have professional certification as technicians (computers, dental prostheses), graphic artists, designers, applied engineers, accountants, chefs, etc.
Why is it a good idea to employ a person with disabilities?
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Our rehabilitees are suited to the occupational field that has been chosen for them and their training meets the labor market’s demands.
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Research studies have shown that employees who must deal with a disability are more committed, dedicated and reliable.
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The provision of equal opportunities is an important value for the promotion of the integration of disabled persons in society.
You are invited to provide us with details on the requirements of the job you are offering, on the profile of whom you would consider as an ideal worker for this job (education, training, experience), on the scope of the work (full- or part-time), on the work environment and on the geographical region of the proposed job. Please send these details to davidi@nioi.gov.il and we will be happy to disseminate your job offer on your behalf. |
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