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 childThe son or daughter of an insured person (including foster child, adopted child and grandchild supported entirely by the insured person, except for a married child) who meets one of the following conditions: *up to age 18; *if completing his studies at a post-elementary educational institution or studying in a framework to complete matriculation exams, or having a learning disability and studying in a framework recognized by the NII– up to age 20; *if in a pre-army IDF framework – up to age 20;* if a volunteer in a framework of public service for up to 12 months and his army service is deferred due to this volunteering – up to age 21; *if serving compulsory service in the IDF – up to age 24; *if serving in the voluntary National Service – up to age 24;*if studying in an "atuda" framework and deferring army service due to studies – up to age 24. 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 44,611
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 44,611 .
If a person owns two or more vehicles, or the value of his single vehicle exceeds
NIS 44,611 , he or she will not be eligible for an income supplement.
Whether a person works and earns each month more than NIS 2,968 , 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 2,018 – 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, 2023)
Stage 1
- In the case of a working person earning more than NIS 2,968 per month who has
not yet reached retirement age, or a working person earning more than NIS 2,018
per month who has reached retirement age, or their spouse has – NIS 18,960 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 2,968 per month and not having reached retirement age yet, or working and earning less than NIS 2,018 per month and the person and his or her spouse
have reached retirement age – NIS 10,037 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 2,968 ) 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 44,611 :
- A person has been recognized as an authorized driverA person (either relative or caregiver) who has a valid driving license, who has been authorized by the National Insurance Institute to drive the vehicle belonging to the person with mobility limitation ,and who lives with the person with mobility limitation in the same building or in a nearby building which is up to 1500 meters from his home, or at a longer distance if these are the two closest buildings in the settlement. 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 44,611 , 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 2,968 and if the person or their spouse have reached retirement age – one's income from work exceeds 17% of the average wage – NIS 2,018 .
- 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.