Vehicle


Below are the conditions of entitlement to an income supplement when a vehicule (including a motorcycle) is owned/used by the pension recipient, his/her spouse or his/her child who is living with him/her.  In this context, age, employment status and income from work are taken into account and may influence the entitlement to this benefit.

A person who owns one vehicle with a value not exceeding NIS 42,366 could be eligible for an income supplement, provided that he/she meets all other conditions of entitlement. Under certain circumstances, hereafter detailed, a vehicle does not exclude eligibility, even if its value exceeds NIS 42,366 .

If a person owns two or more vehicles, or the value of his single vehicle exceeds NIS 42,366 , he or she will not be eligible for an income supplement.

Whether a person works and earns each month more than NIS 2,638 , or a person or his/her spouse has reached retirement age, and they earn each month (including any income from their child’s work) more than NIS 1,794 the value of the vehicle shall be deemed lower than the value of the vehicle of a person who does not work.

Following is an explanation regarding the calculation method of an income supplement when the pension recipient holds a vehicule:

(as of Jan 01, 2022)

Stage 1

  • In the case of a working person earning more than NIS 2,638 per month who has not yet reached retirement age, or a working person earning more than NIS 1,794 per month who has reached retirement age, or their spouse has – NIS 18,006 will be deducted from the vehicle’s value (credit for vehicle value).
  • In the case of a person not working or working and earning less than NIS 2,638 per month and not having reached retirement age yet, or working and earning less than NIS 1,794 per month and the person and his or her spouse have reached retirement age – NIS 9,532 will be deducted from the vehicle’s value (credit for vehicle value).

Stage 2

Three percent of the vehicle's value following the deduction of credit (as described in Stage 1) will be taken into account.

Stage 3

The amount obtained in Stage 2 will be deducted from the income supplement that would be due to a recipient, had he or she not owned a vehicle.

If one's child owns a vehicle, and he or she has earned income – the value of the vehicle will be taken into account, but not the earned income.

  • A person dismissed from work or who resigned and is eligible for an unemployment benefit, and in the three months before leaving work received income support or an income supplement, and owns or has the use of a vehicle, will be deemed to have worked for the three months following the dismissal or resignation for calculating the vehicle’s value.
  • A person whose income has decreased and in the three months prior to the reduction received income support or an income supplement, and owns or has the use of a vehicle, will be deemed to be working and earning 25% of the average wage (NIS 2,638 ) in the month when his or her income dropped and thereafter.

In the following cases one will not lose eligibility for a benefit due to the ownership of a (single) vehicle even if its value exceeds NIS 42,366 :

  • A person has been recognized as an authorized driver for a person eligible for a mobility benefit (even if the disabled person is not a spouse or child);
  • A person, his or her spouse or child are disabled in the legs and have been recognized as such by a National Insurance Institute physician;
  • A person's child receives a child disability benefit;
  • A person or his or her spouse are sick, and the sick person’s vehicle license has been deposited with the Licensing Bureau;
  • A person uses the vehicle to transport a sick family member for frequent medical treatments.  In any event, approval for this will be based on the opinion of a National Insurance Institute physician.

In the following cases one will not lose eligibility for an income supplement due to possession of a vehicle, even if its value exceeds NIS 42,366 , for up to 3 months:

  • A person is the parent of a disabled child or receives a mobility benefit, and owns or has use of two vehicles – if the person bought a new vehicle and has not yet managed to sell the old one;
  • A person is the parent of a disabled child and is not eligible for the child disability benefit;
  • A person is a widow or widower with no driving license, and the deceased spouse owned the vehicle;
  • The vehicle owner's eligibility for a benefit was determined according to the rules specified here, and the vehicle owner has died or been imprisoned.

Please note:

Anyone who owns a vehicle and believes he or she may be eligible for an income supplement according to the rules described here, may submit a claim for an income support benefit at the branch closest to his or her place of residence, as soon as possible.

A person who received the income supplement before September 2012 and whose eligibility never stopped and owned or used a vehicle, or their spouse did, will continue to be eligible for the supplement, regardless of the value of the vehicle, as long as he or she continues to meet the conditions defined before the amendment to the Law:

  • One's income from work exceeds 25% of the average wage – NIS 2,638 and if the person or their spouse have reached retirement age – one's income from work exceeds 17% of the average wage – NIS 1,794 .
  • The vehicle has an engine size of up to 1300cc and is at least 8 years old, or an engine size of up to 1600cc and is at least 13 years old.

At your disposal, a calculator regarding the amount of income supplement to which you are entitled.