Amendments improving the situation of General Disability pension recipients
Increase of the Additional Monthly Pension (AMP)
The Additional Monthly Pension is paid to the disabled whose earning incapacity level is rated at 100%. Following the amendment of the law, as of January 2017, the scope of eligible persons is extended: the Additional Monthly Pension will be paid to disabled with earning incapacity rate from 40% and higher (instead of 50% and higher). Moreover, additional pension payments will increase for other recipients. The Additional Monthly Pension increment will increase from - NIS 44 to NIS 150, according to the percentage of medical disability.
Additional Monthly Pension (AMP) payments as of January 2017
Cancellation of Disability Pension denial due to a sick pay
As of January 1, 2017, the person receiving a sick pay from his employer, can receive a Disability Pension as long as he passes an income test.
The insured persons that, during 2016, were denied due to a sick pay and still receive, on January 2017, sick pay - please send last 3 pay slips to the Disability Department of the NII branch handling your case, in order to assess their pension eligibility.
Cancellation of the re-examination of ability to work for the disable who joined work force.
Disabled that stopped receiving a Disability Pension due to an increase in his income, while having a valid level of incapacity, can resume receiving a pension without re-examination.
Amendments to the Law for the working disabled (Laron Law) that will encourage people with disabilities to integrate the job market (entering into force on January 1, 2017):
- Increase in the amount of income that is allowed to pay and still be entitled to receive a full pension - in other words, pension offset will start from the amount of NIS 2,745 (29% of the average wage) instead of NIS 2,031 (21% of the average wage) today, thus, the pension payment and the wage from work will reach the overall amount of the minimum wage, at least (i.e. around NIS 5,000).
- Cancellation of distinction, among pension recipients, between those eligible to pension A, and a pension B, and determination of a single income shelf to all eligible people, at 60% of the average wage amounting to NIS 5,804 (as of January 1, 2017)
- Cancellation of the term "incentive pension" - therefore, whoever see his income increase by 60% over the average wage of NIS 5,804 (as of January 1, 2017) will keep receiving a Disabled pension, and is allowed to increase his income without meeting the requirement of 12 months of pension eligibility, as required so far. Disability pension will terminate for those with income reaching NIS 8,753 and above (in accordance with family composition).