The National Insurance Institute is at your side during your life, from birth to advanced age, granting you a variety of social rights adapted to changing life situations.
The National Insurance Institute is responsible for the social security of Israeli residents.
Its primary mission is to ensure means of subsistence for those unable to earn their living.
The National Insurance Institute collects insurance contributions from all residents according to their social background and status, and pays benefits to those entitled. Hence, the income of economically established groups is transferred to weak and vulnerable groups and, thereby, the National Insurance Institute contributes to a more equitable distribution of national income and the reduction of dimensions of poverty. Further information...
The following is an explanation of the method of calculation of national and health insurance contributions for self-employed persons who work solely in that capacity:
Prior to receipt of the income tax assessment for that tax year, the national insurance contributions of a self-employed person are calculated on the basis of last income information received by the NII up to 31/12 of the previous year. Following the receipt of the tax assessment for that tax year, the differential payments (or credit) will be determined.
The function we use to calculate quarterly (3 months) deduction is:
Example of calculation of national and health insurance contributions for a self-employed working solely in that capacity, earning an income, on January 2023, of NIS 10,000:
To obtain the amount basis liable of insurance contributions for a quarter, above data is input in the formula:
30,000+[ 1.8*12,536*(0.1283-0.0287)*0.52 ] = 29,2191+0.52*0.1283
Total of quarterly insurance contributions - NIS 2,535