The National Insurance Institute is at your side during your life, from birth to advanced age, granting you a variety of social rights adapted to changing life situations.
The National Insurance Institute is responsible for the social security of Israeli residents.
Its primary mission is to ensure means of subsistence for those unable to earn their living.
The National Insurance Institute collects insurance contributions from all residents according to their social background and status, and pays benefits to those entitled. Hence, the income of economically established groups is transferred to weak and vulnerable groups and, thereby, the National Insurance Institute contributes to a more equitable distribution of national income and the reduction of dimensions of poverty. Further information...
Savings money may be withdrawn only when the child turns 18 years old, baring exceptional circumstances. Inquiries regarding the sum of accrued savings, withdrawal dates and more, are to be addressed to the provident fund or the bank which manages the savings.
To withdraw saved money, you must fill out a Money Withdrawal Request and submit it to the provident fund or the bank, which are administering your child's savings. The National Insurance does not handle savings withdrawal requests.
When the child turns 21, the National Insurance Institute will deposit a another savings subvention of NIS 550 , on condition that savings moneys were not withdrawn previously.As of the age of 21, the child may withdraw savings money at any time without the authorization of his or her parents.
The parents of child in life threatening health situation can withdraw savings money prior to his 18 birthday, in order to cover his or her medical needs, under the approbation of a physician of the National Insurance Institute.
Upon approval by a physician, a NIS 550 savings subvention will be deposited (immediately and not at age 18), and parents will be able to withdraw savings money.
After the withdrawal, the NII will continue to transfer money for the child's savings, up to age 18.
At age 18, the NIS 550 subvention will not be deposited (since it has already bee paid at the time of the withdrawal). However, if the child continues to save until age 21, he or her will obtain another subvention of NIS 550 , paid at age 21.
When a child, for whom child allowances were paid, dies, his or her parents are entitled to receive child allowance during the month of his death and for three additional months afterwards. During that period of time, monthly deposits will still be made to the savings plan. At the end of that period, parents will be able to withdraw savings money.
When savings money are withdrawn, in part or in whole, return on capital tax will be deducted from the withdrawal amount.
Please note, the child whose savings are administered by a provident fund and who decides to leave his accrued savings money in the provident fund for investment until retirement age, will be able to receive savings money after retirement as an allowance, without paying any tax on capital returns.
Amont updated as of Jan 01, 2023