A male pensioner who did not reach retirement age yet, and a female pensioner who is not married and did not reach retirement age yet, who are recipients of a pension, are liable to pay insurance contributions on their pension.
The pension payer has the obligation to deduct at the source insurance contributions from the pension and transfer them to the National Insurance Institute. For purposes of insurance contributions payment, the term "pension" refers to the benefit paid to someone who is or was a worker, by virtue of the law or an employment agreement.
The pension paid to the pensioner's survivors (such as his widow, children, etc.) is exempted from payment of insurance contributions. A pensioner in early retirement who works as salaried employee or self-employed, or both, must pay insurance contributions on all income sources up to the maximum amount of income for insurance contributions payment, i.e. 43,890 NIS (as of January 1, 2019). Above mentioned pensioners whose income liable to insurance contributions from all sources exceed the maximum amount of income for insurance contributions payment, is entitled to a return of insurance contributions paid above that threshold.