Rates of insurance contributions


Rates of insurance contributions for the self-employed aged betewen 18 and prior to retirement age:

 

 

For the share of income which is up to 60% of the average wage (reduced rate) - NIS 6,164 NIS 6,331

For the share of income which exceeds 60% of the average wage up to the maximum income liable for insurance contributions (full rate) - NIS 43,890 NIS 44,020

National  insurance contributions

% 2.87 % 2.87

% 12.83 % 12.83

Health insurance contributions

% 3.1 % 3.1

% 5 % 5

Total

% 5.97 % 5.97

% 17.83 % 17.83













Rates of insurance contributions for the self-employed who is under 18 or has reached retirement age:

 

Those up to age 18 or who are receiving an old-age pension, will pay as follows:

  • On the portion of income up to 60% of the average wage NIS 6,164 NIS 6,331 - a reduced insurance contribution rate of % 0.17 % 0.17 .
  • On the portion of income above 60% of the average wage - a regular insurance contribution rate of % 0.78 % 0.78 .

Above rates involve national insurance contributions alone:

Those under 18 - are exempted to pay health insurance contributions.
Those receiving an old age pension - health insurance contributions are deducted from the pension, amounting to NIS 199 NIS 200 per month.

 

Those who reached retirement age and do not receive an old-age pension, will pay as follows:

  • On the portion of income up to 60% of the average wage NIS 6,164 NIS 6,331 - a reduced insurance contribution rate of % 5.47 % 5.47 .
  • On the portion of income above 60% of the average wage - a regular insurance contribution rate of % 15.62 % 15.62 .

Above rates involve health insurance contributions as well.


If the income from your profession be lower than NIS 2,568 NIS 2,638 per month, contributions are paid based on the minimum income.

Updated to Jan 01, 2020