1. Larger Old Age and Survivors pension rates resulting from an increase in seniority increment
As of 2017, pension rates will raise for recipients of an Old Age or Survivors pension,
whose seniority increment rate is below 50%.
What is seniority increment?A seniority
increment is added to the
basic old age pension or the
basic survivors pension that are established based on the recipient's age and personal status.
The increment for Old Age pension is calculated from the years of insurance contributions accumulated by the Old Age pension recipient. The increment for Survivors pension is calculated from the insurance periods accumulated by the deceased before he expired. The
maximum rate available for a seniority increment is 50% of the pension.
Seniority increment calculation by years of insurance contributions:
Until December 2016, seniority increment was calculated as follows: for each year beyond the first ten years of insurance contributions, a seniority increment of 2% of the basic Old Age pension is paid.
Pursuant to the amendment, a different method of calculation applies for those with seniority increment rate below 50%. Their increment will gradually increase on 4 specific dates, and will be calculated as follows:
- In January 2017, a 2% seniority increment will be paid for every year of insurance contribution beyond the first nine insurance years.
- In January 2018, a 2% seniority increment will be paid for every year of insurance contribution beyond the first eight insurance years.
- In January 2019, a 2% seniority increment will be paid for every year of insurance contribution beyond the first four insurance years.
- In January 2020, a 2% seniority increment will be paid for every year of insurance contribution, i.e. from the first insurance year.
Please note: Even after the modification of the law, the maximum rate available for seniority increment remains at 50% of the pension.
The increased seniority increment will be automatically paid as of January 2017.
Recipients of Old Age or Survivors pension with income supplement, please note:
Those who will lose their eligibility to an income supplement as a result of the increased seniority increment, will not, however, lose their eligibility to receive accompanying benefits from other Institutions, and will get the same reduction to which they were used so far for Arnona, electricity, water, etc.
2. Improvement and supplements for Old Age and Survivors pension recipients with income supplement
As of January 2017, the income supplement increased for Old Age and Survivors pension recipients, and so did the amount of income from work that you are allowed to earn and still be entitled to a full or partial income supplement, as detailed below:
New pension rates with income supplement:
Increase in the authorized amount of income from work
The amount of income from work that you are allowed to earn and still be entitled to a full or partial income support has increased, it is therefore worth your while to go out to work!
New (gross) amounts of income from work:
Single - NIS 2,946 (as of Jan 01, 2024).
Couple or single with one child - NIS 3,447 (as of Jan 01, 2024).