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


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 73 per month
  • Health insurance contributions amounting to NIS 104  per month

Overall, a person who does not work and has no income will pay NIS 177 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 2,638

For the income share between NIS 2,638 and NIS 6,331 (reduced rate)

For the income share above between NIS 6,331 and NIS 44,020 (full rate)

National  insurance contributions

​Exempt

% 4.61

7

Health insurance contributions

​Exempt

% 5

5

Total

​0%

% 9.61

12

as of Jan 01, 2021 

Example of insurance contributions calculation

If in 2020 you earned taxable income from a foreign employer amounting to NIS 10,000 per month (NIS 120,000 per year), here is the calculation of national and health insurance contributions that you would have to pay:

  • Exempt income - an income of NIS 2,638 per month is not subject to insurance contributions payments. In other words, for a share of 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 88,344 (120,000 - 31,656), at following rates:

  • Reduced rate - on the income share between NIS 2,638 and NIS 6,331 per month, a rate of % 9.61 shall be paid. In other words, NIS 355 per month (NIS 4,260 for the whole year).
  • Full rate - on the remaining income of NIS 3,669 per month, insurance contributions shall be paid at a rate of 12 - or, NIS 440 per month (NIS 5280 for the whole year).

Overall, for an annual income of NIS 120,000, insurance contributions amounting to NIS 9,540 per year shall be paid.