Self-Employed Person - Rates of insurance contributions paid by self-employed person

Self-employed persons who are 18 years of age and over but who have not yet reached retirement age pay their contributions according to the following specifications:

• For that share of their income which is 60% or below of the average wage NIS 5,171 (as of 01.01.2012) they pay national insurance contributions equivalent to % 6.72 (as of 07.01.2002) of that share and pay health insurance contributions equivalent to % 3.10 (as of 01.01.1995) of that share.
• For that share of their income which exceeds 60% of the average wage up to the maximum level of income for which national and health insurance contributions must be paid, they pay national insurance contributions equivalent to % 11.23 (as of 01.01.2006) of that share and pay health insurance contributions equivalent to % 5.00 (as of 01.01.2006) of that share.

For the table of insurance rates and amounts for self-employed persons, press here

The reference is to the average wage according to the National Insurance Law. It is calculated according to a method determined in the Law, on January 1st of every year, and afterwards each time that a compensation is paid.

The age at which you will be entitled to the old-age pension, on condition that your income from work and from other sources does not exceed a certain amount. Income from work pension is not taken into account. This age is not uniform for everybody; it is determined in accordance with gender and date of birth.

 If you do not receive an old-age pension:

1. You pay national insurance contributions at the (reduced) rate of % 8.65 (as of 07.01.2002) of that share of your income which is 60% or less of the average wage, % 0.04 (as of 04.01.2011) .
   
2. You pay national insurance contributions at the (regular) rate of % 14.29 (as of 01.01.2006) of that share of your income which exceeds 60% of the average wage.

These rates include health insurance contributions.

If you receive an old-age pension:

1. You pay national insurance contributions at the (reduced) rate of % 0.39 (as of 07.01.2002) of that share of your income which is 60% or less of the average wage, % 0.04 (as of 04.01.2011) .
   
2. You pay national insurance contributions at the (regular) rate of % 0.68 (as of 01.01.2006) of that share of your income which exceeds 60% of the average wage.

These rates include only national insurance contributions. The health insurance contributions are deducted each month from your old-age pension in the amount of NIS 189 (as of 01.01.2012) .