Declaration and payment of insurance contributions:
As of April 2018, recipients of attendance allowance or disabled child allowance who employ a foreign worker, will declare and pay insurance contributions on the wage paid to the foreign worker in the following manner:
On the wage paid to the foreign worker up to the amount of the benefit he receives - one must regularly declare and pay insurance contributions.
On the wage paid to the foreign worker above the amount of the benefit and up to NIS 5,500 per month - exemption from regular declaration.
For instance: the recipient of a NIS 3,500 benefit who pays a wage of NIS 6,000 per month to a foreign worker, will pay insurance contributions as follows:
Liable to declare and pay insurance contributions upon NIS 3,500 (amount of the benefit).
Exempt from declaration upon NIS 2,500 (balance to NIS 6,000)
On the wage paid to the foreign worker in addition to the allowance amount beyond NIS 5,500 per month - there will be a declaration exemption on NIS 5,500, and an obligation to declare and pay insurance contributions on the amount of the allowance and wage beyond NIS 5,500.
For instance: the person who receives a benefit of NIS 2,000 and pays to a foreign worker a wage of NIS 8,500 per month, will declare and pay insurance contributions as follows:
Obligation to declare and pay insurance contributions on the wage of NIS 2,000 (benefit amount).
Exemption from declaration on NIS 5,500
Obligation to declare and pay insurance contributions on the wage of NIS 1,000 (balance to NIS 8,500)
In other words, liable to pay insurance contributions on NIS 3,000.
Method of declaration and payment
Insurance contributions must be paid at a 2% on the wage.
The payment can be made by means of the payments website or a payments booklet.
Please note, we mail a payments booklet automatically to those who have an employer file open at the National Insurance Institute. The 2020 booklet will be mailed by March 2020.
How to obtain the exemption?
To obtain the exemption, you must meet the two conditions below:
- Open a file as employer of a domestic worker at the National Insurance Institute.
- 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 due to him.
For inquiries, you can contact the national call center at *6050.