Deductions from the benefit payment

Income tax and national and health insurance contributions are deducted from the unemployment benefit payment.

• Income tax - Income tax is deducted at source from the unemployment benefit that is paid to youunder Articles 164 and 243 of the Income Tax Ordinance and the regulations thereunder. If you have an authorization for an income tax discount or exemption, you must submit it the NII (claims clerk) in order to realize your right, or alternatively to the Income Tax Authority (assessing officer in your area of residence) in order to obtain a tax return.  
• National and health insurance contributions - National Insurance contributions are deducted from the unemployment benefit at the minimum rate for national insurance contributions - NIS 29 (as of Jan 01, 2024), and health insurance contributions are deducted according to the amount of the unemployment benefit.
• Income during unemployment period - If, during the unemployment period, you have an income from work as either a salaried employee or a self-employed, or from a retirement pension, this income will be deducted from unemployment benefits to which you are entitled. For more information, click here.