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HomePage > Insurance > Self-Employed Person
Self-Employed Person

A self-employed person is defined as one of the following:

A person who is engaged in his occupation for at least an average of 20 hours a week

A person whose average monthly income from his occupation is more than  NIS 3,832 (as of 01.01.2008) - 50% of the average wage.

A person who is engaged in his/her occupation for at least an average of 12 hours a week, and his average income is more than NIS 1,149 (as of 01.01.2008) - 15% of the average wage.

Graphic PictureRegistration with National Insurance Institute
Graphic PictureA married woman who works as a self-employed person at her husband’s business
Graphic PictureA married couple working together in a joint business
Graphic PictureA self-employed person who also has an income from work
Graphic PictureA self-employed person with additional income from a source other than work
Graphic PictureA person who does not meet the definition of self-employed person as specified above
Graphic PictureA farmer
Graphic PictureRates of insurance contributions paid by self-employed person
Registration with National Insurance Institute

A self-employed person must register at the National Insurance Institute immediately upon opening his business. A self-employed person who was injured at work is entitled to work injury benefit only if he/she was registered at the National Insurance Institute as a self-employed person at the time of the injury and paid insurance contributions.

A married woman who works as a self-employed person at her husband’s business

must register herself at the National Insurance Institute and pay insurance contributions.

 

A married couple working together in a joint business

can divide up the income from their business between themselves and pay insurance contributions according to each one's share, on condition that the division is between 1/3 and 2/3 of the overall income. If one of the spouses has income that does not originate from their joint business, this spouse can be credited with only 1/3 of their income from the joint business.

A self-employed person who also has an income from work

as an employee must pay health insurance at both workplaces, up to the maximum income on which insurance is payable.

A self-employed person with additional income from a source other than work

must pay insurance contributions from this income as well, while it is equal to or higher than his/her income as a self-employed person, up to the maximum income liable for the payment of insurance contributions.

A person who does not meet the definition of self-employed person as specified above
A farmer

who meets the definition of a self-employed person is required to register at the National Insurance Institute and pay insurance contributions on his/her income.
The wife of a farmer in a cooperative settlement (moshav) is also considered a self-employed person and is required to register and pay insurance contributions for herself.
If the farmer or his wife do not work in their farm for example, if they work as employees outside the farm and only reside at the farm they must contact the National Insurance Institute and submit ratifying documents

 

Rates of insurance contributions paid by self-employed person For more informationFor more information

A self-employed person aged between 18 and retirement age pays:

For the share of the income that is up to 60% of the average wage NIS 4,598 (as of 01.01.2008)  - 6.72 % (as of 01.07.2002) national insurance and 3.10 % (as of 01.01.1995)  health  insurance contributions.

For the share of the income that is over 60% of the average wage and up to the maximum income liable for insurance contributions:  11.23 % (as of 01.01.2006) national insurance and 5.00 % (as of 01.01.2006) health insurance contributions.

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