Insurance and Collection

The proper payment of insurance contributions ensures eligibility for most National Insurance benefits. All Israeli residents aged 18 and older must, under law, be covered with the National Insurance Institute and pay insurance contributions (except for a married woman who is a housewife only and a person who immigrated to Israel and became a resident for the first time when over 62).

Payment of national and health insurance contributions is calculated in accordance with level of work and non-work income of the insured, and also in accordance with the status of the insured:

A salaried worker
A self-employed worker
Unemployed

All insured persons must be registered with one of the country’s health maintenance organizations (HMOs, known also as kupot holim) and may choose which HMO to join. The HMO must provide all insured persons with a standard Health basket as specified by law.

The amount of one's payment of national and health insurance contributions is calculated in accordance with the level of income that the insured person has from his workplace or from other sources, and in accordance with the determined for him:

• Salaried employee
• Self-employed person
• A person who does not work

A person whose life is centered in Israel. Among the criteria for determining residence in this context: permanent place of residence, place at which the family is staying, place of the children's education, main place of work, place of learning.

A range of vital health services that a health maintenance organization (HMO, known in Israel as a “kupat holim”) must provide unconditionally to all its members.

Employers must report on their employees and must pay insurance contributions on their behalf. However, self-employed workers, students (including yeshiva students) and non-workers must pay their insurance contributions on their own.

Following are the different methods of reporting and of paying insurance contributions:

 Under the National Insurance Law, if a worker is employed by several employers or if a person receives early pension from several sources, the secondary employer or pension payer deducts national and health insurance contributions from his income or pension at the full rate. In some cases, the amount of insurance contributions deducted is higher than that required by law.

In order to prevent over-deduction of insurance contributions, workers employed by several employers and persons receiving early pension from several sources should provide their secondary employer or pension payer with an authorization of the correct deduction rate.

A worker or early pension recipient from whose income or pension an amount has been deducted which is greater than the required one is entitled to a refund of insurance contributions.

The following may coordinate their insurance contributions:
      A person working for two employers or more
      An early pension recipient who also works as an employee for one employer or more
     A person receiving an early pension from two or more sources

On condition that they meet one of the following conditions: 
     Their monthly income from their main employer or primary pension source is below 60% of the average wage, that is, below NIS 5,171 (as of 01.01.2012) .
  Their total monthly income from all employers and/or pension sources is higher than the maximum income liable for the payment of insurance contributions: NIS 41,850 (as of 01.01.2012) .

The amount of maximum income on which insurance contributions are paid. Insurance contributions are not paid on any income that is above this maximum. The maximum is updated every year in accordance with the rate of the rise in the Consumer Price Index.

The employer through whom his worker declared, in form 101, that he earns his "monthly salary".

The employer through whom his worker declared, in form 101, that he earns an "additional salary.

If you are an Israeli resident and you were sent to work abroad by your Israeli employer, your Israeli employer is responsible for payment and must deduct your insurance contributions from your salary.

An Israeli resident who works for a foreign employer in a country that is a signatory to a social security convention with Israel, and who pays social insurance contributions in that country is exempt from payment of national insurance contributions to the NII, and is required to pay only health insurance contributions.

If you have been residing abroad with your family for a lengthy period of time or if you have immigrated to another country and are in effect no longer an Israeli resident, you must notify the NII so that the possibility of the termination of your NII coverage can be looked into.

A person whose life is centered in Israel. Among the criteria for determining residence in this context: permanent place of residence, place at which the family is staying, place of the children's education, main place of work, place of learning.

An insured person who is neither an employee nor self-employed (including a Yeshiva student) must register at the National Insurance Institute and pay the national insurance and health insurance contributions by himself, in accordance with his income. If the person has no income, he pays the minimum insurance contribution.

In order to encourage employers and self-employed persons to settle their debts to the National Insurance Institute, and to ensure their rights, the local branches have the authority to reduce fines and to settle debts by installment payments. The latter can be facilitated by a letter of recommendation for a bank loan.

The Institute enables employers and self-employed persons to settle their debts by means of credit card either by telephone or by the NII Internet website, in the Insurance Payment section; or by a standing order arrangment with a bank; or by post-dated checks.

The confirmation of debt settlement given to employers and self-employed persons,  (who make payment arrangements either by credit card or by recomendation for a bank loan) will include the insurance contributions for that year as presented for income tax deduction purposes.

These arrangements apply only to debts and not to current payments. In order to assist insurees, the National Insurance Institute has reached an agreement with all the banks, and insurance contributions may now be paid at any bank.

A career-service soldier receives health services via the IDF, and not directly via the National Health Insurance. Nonetheless, health insurance contributions are deducted from his salary together with national insurance contributions.

The rate of insurance contributions deducted from his salary is lower than that deducted from employees.

A person participating in vocational training in a framework approved by National Insurance regulations is insured under both the National Insurance and  the Health Insurance Laws. The organization providing the training is responsible for paying insurance contributions for such a person.

To obtain answers to any questions or queries related to registering or changing Sick Funds, contact the National Insurance Institute, Registration and Allocation Division, located at 13 Weizman Blvd, Jerusalem, Sunday through Thursday, 8.00 to 13.30.

Tel: 02-6707775, 02-6707824, 02-6707744     Fax: 02-6707057

Computerized Call Center, for payment of debts by credit card:
Telephone:  08-6509911

Call Center hours:

Sunday to Wednesday: 7:00 - 23:30
Thursday:  7:00 - 18:30
Friday:  7:00 - 14:30