Exemption of insurance contributions to the employer of a foreign worker for long-term care


Exemption for the employer of a foreign worker who is recipient of a benefit from the National Insurance Institute (NII)

Recipients of long-term care benefits, attendance allowance and disabled child allowance, who employ a foreign worker for long-term care purposes - are exempted from reporting and paying insurance contributions on the wage they pay privately to the foreign worker, up to the sum of 5,500 NIS per month.

  • For information about the exemption for long-term care benefit recipients - click here.
  • For information about exemption for recipients of attendance and disabled child allowances - click here.

Exemption for the employer of a foreign worker who does not receive any benefit from the NII

As of 1.1.2020, the employer of a foreign worker (caregiver), who holds a permit to hire a foreign worker for purposes of long-term care issued by the Population and Immigration Authority - will be exempt from reporting and payment of insurance contributions on the wage that he pays privately to the foreign worker, up to an amount of NIS 5,500 per month.

Remark: the exemption of payment of insurance contributions applies neither to corporations nor to other entities who employ foreign workers. The exemption is not granted but to a long-term care employer who is a private individual.

How to receive the exemption?

  • I the wage you are paying privately to the foreign worker amounts to up to 5,500 NIS per month - you will be exempted from payment of insurance contribution.
  • I the wage you are paying privately to the foreign worker amounts is above 5,500 NIS per month - you have to report and pay contributions only on the wage balance above NIS 5,500 per month.

For instance: If you privately pay to the foreign worker a wage totaling 6,500 NIS, you must report and pay insurance contributions on 1,000 NIS alone.

Amount and method of payment

Insurance contributions rate - 2% of the wage subject to payment.

The payment can be made by means of the internet site or a payments booklet. We send payments booklet automatically to the employer of a foreign worker who is not a recipient of long-term care benefit. The booklet is sent to him by post up to the month of March 2020 (first payment for 2020 is only made in April 2020).

Conditions of entitlement to the exemption

To obtain the exemption, you must meet the two conditions below:

  1. Open a file as employer of a domestic worker at the National Insurance Institute (even if you don't actually have to pay insurance contributions), and communicate relevant details notably about the foreign worker and the wage.
  2. Pay the wage by bank transfer into the bank account of the foreign worker or by cheque made out to the foreign worker and cashed on his bank account.

Important: if the foreign worker submits a claim for a benefit from the National Insurance Institute (such as work injury benefit, maternity allowance and the likes), we will ask you and him to provide us with supporting documents regarding wage payment, such as printouts of the bank account into which wage deposits were made by cheque or bank transfer, in order to calculate to benefit rate du to him.

For any inquiries, you can call the telephone call center at *6050 or the information and support center for the elderly and their families at *9696.