For non-working people or those with non-work income


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Insurance contributions rate for non-working people without income

Those who do not work and without income are liable to pay insurance contributions at the minimum rate:

  • National insurance contributions amounting to NIS 82 per month
  • Health insurance contributions amounting to NIS 112  per month

Overall, a person who does not work and has no income will pay NIS 194 per month.
Available methods of payment of insurance contributions

Insurance contributions rate for income not from work

Those who are not working and who have income not from work - will pay national and health contributions as a percentage of their income.

Please note that an Israeli resident staying abroad and working for a foreign employer, pays insurance contributions on his income at the rate set out for non-work income.

Table of insurance contribution rates for income not from work:

 

 ​Up to NIS 2,968

For the income share between NIS 2,968 and NIS 7,122 (reduced rate)

For the income share above between NIS 7,122 and NIS 47,465 (full rate)

National  insurance contributions

 ​Exempt

4.61%

7%

Health insurance contributions

 ​Exempt

5%

5%

Total

 ​0%

9.61%

12%

Example of insurance contributions calculation

If in 2023 you earned taxable income from a foreign employer amounting to NIS 12,000 per month (NIS 144,000 per year), and had no other income, here is the calculation of national and health insurance contributions that you would have to pay:

  • Exempt income - an income of NIS 2,968 per month is not subject to insurance contributions payments. In other words, with respect to NIS 31,656 per year (2,638 multiplied by 12 months) you will not need to pay any insurance contribution.

You have to pay insurance contributions on an annual income of NIS 112,344 (144,000 - 31,656), at following rates:

  • Reduced rate - on the income share up to NIS 7,122 per month, a rate of 9.61% shall be paid. In other words, NIS 684 per month (NIS 8,208 for the whole year).
  • Full rate - on the remaining income of NIS 2,240 per month, insurance contributions shall be paid at a rate of 12% - or, NIS 269 per month (NIS 3,228 for the whole year).

Overall, for an annual income of NIS 144,000, insurance contributions amounting to NIS 11,436 per year shall be paid.

as of Jan 01, 2023