Exemption from insurance contributions


The following pension recipients are exempt from paying national and health insurance contributions from their pension, and therefore the payer of the pension should not deduct insurance contributions:

      • A person who is insured and has reached retirement age.
      • A married woman who does not work and her husband is insured, even if she has not yet reached retirement age.
      • A person who is insured and retired on the 2nd of the month onwards on that month national insurance contributions will not be deducted from the pension, but only from the following month onwards.
      • The dependant relatives of a pensioner will be exempt from payment of insurance contributions from their dependants' pension in any case.

The following pension recipients are exempt from paying national and health insurance contributions only if a signed authorization from the National Insurance Institute is presented to the payer of the pension. In the following cases the payer of the pension will not deduct insurance contributions:

        • A widow receiving dependants' benefit or work related dependents pension from the NII.
        • A disabled insured person receiving from the NII a temporary general disability pension at a rate of 75% for a period of at least one year or a permanent general disability pension at a rate of 75% or a permanent work disability benefit of 100%.
        • A person who is insured and his monthly income as an employee is greater than the maximum income liable for the payment of insurance contributions  NIS 44,020 (as of Jan 01, 2020).
        • A person who is insured and his monthly income as a self-employed is greater than the maximum income liable for the payment of insurance contributions  NIS 44,020 (as of Jan 01, 2020).
        • A person who is insured but is not an Israeli resident.