Israel

Old Age, Disability, and Survivors

Regulatory Framework

First and current laws: 1953 (national insurance), implemented in 1954; 1955 (survivor pensions); 1957 (old-age pensions); 1974 (disability pensions); 1980 (income support); 1982 (income support benefits); and 1988 (long-term care benefits).

Type of program: Social insurance and social assistance system.

Coverage

Residents of Israel.

Source of Funds

Insured person

Social insurance: 0.22% of earnings up to and 3.85% of earnings above 60% of the national average monthly wage (old-age and survivor pensions); 0.11% of earnings up to and 1.86% of earnings above 60% of the national average monthly wage (disability benefits); and 0.01% of earnings up to and 0.14% of earnings above 60% of the national average monthly wage (long-term care).

For persons whose primary source of income is not from work, 2.4% of unearned income up to and 5.76% of unearned income above 60% of the national average monthly wage (old-age and survivor pensions); 0.87% of unearned income up to and 2.07% of unearned income above 60% of the national average monthly wage (disability benefits); and 0.09% of unearned income up to and 0.21% of unearned income above 60% of the national average monthly wage (long-term care).

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The legal monthly minimum wage is 5,300 new shekels.

The maximum monthly earnings used to calculate contributions are five times the monthly old-age basic amount.

The monthly old-age basic amount is 8,674 new shekels.

Social assistance: None.

Self-employed person

Social insurance: 3.09% of earnings up to and 5.21% of earnings above 60% of the national average monthly wage (old-age and survivor pensions); 1.11% of earnings up to and 1.86% of earnings above 60% of the national average monthly wage (disability benefits); and 0.12% of earnings up to and 0.18% of earnings above 60% of the national average monthly wage (long-term care).

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are 25% of the national average monthly wage.

Social assistance: None.

Employer

Social insurance: 1.30% of earnings up to and 2.04% of earnings above 60% of the national average monthly wage (old-age and survivor pensions); 0.26% of earnings up to and 0.42% of earnings above 60% of the national average monthly wage (disability benefits); and 0.04% of earnings up to and 0.19% of earnings above 60% of the national average monthly wage (long-term care).

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The legal monthly minimum wage is 5,300 new shekels.

The maximum monthly earnings used to calculate contributions are five times the monthly old-age basic amount.

The monthly old-age basic amount is 8,674 new shekels.

Social assistance: None.

Government

Social insurance: 0.25% of insured persons' earnings (old-age and survivor pensions), 0.10% of insured persons' earnings (disability benefits), 0.02% of insured and self-employed persons' earnings (long-term care); the total cost of special old-age and survivor benefits and long-term care benefits for new immigrants; and the total cost of the mobility allowance.

The government also subsidizes 50.94% of total contributions for old-age, disability, and survivors, sickness and maternity, work injury, unemployment, and family allowances.

Social assistance: The total cost.

Qualifying Conditions

Old-age pension (social insurance, income tested): Age 70 (men) or age 68 (women, gradually rising to age 70 by 2020) for a pension without an income test; age 67 (men) or age 62 (women, gradually rising to age 64 by 2022) for a pension with an income test. Must have at least 60 months of contributions in the last 10 years or a total of 144 months of contributions. There is no qualifying period for women who are: widowed, divorced, abandoned, married to an uninsured husband; unmarried and immigrated to Israel at age 57 or older; or receiving a disability pension during the month before reaching the retirement age. Persons who immigrated to Israel for the first time after age 60 to 62 (depending on date of birth) are ineligible for an old-age pension.

Income test: From age 67 to 70 (men) or age 62 to 68 (women), the pension is reduced or eliminated if the insured's gross monthly income exceeds a certain limit. From age 70 (men) or age 68 (women), there is no income test.

Deferred pension: The pension is increased for each year from age 67 to 70 (men) or age 62 to 68 (women) that the insured did not receive a pension because he or she did not meet the income test.

Dependent's supplement (income tested): Paid for a dependent spouse or a child up to age 18 (age 20 if in higher education or the pre-military framework, age 21 if in military or volunteer service, age 24 under certain conditions). A housewife who receives an old-age pension is ineligible.

Seniority increment: Must have more than four years of contributions. A housewife or widow who receives a pension is ineligible.

Old-age income supplement (means tested): Paid to old-age pensioners if assets and income, including the old-age pension, are less than a minimum established by law. See Family Allowances.

The old-age pension is payable abroad under bilateral agreement.

Special old-age pension for new immigrants (social assistance, means tested): Age 67 (men) or age 62 (women, gradually rising to age 64 by 2022) and immigrated to Israel for the first time after age 60 to 62 (depending on date of birth), or emigrated from Israel and returned and do not meet the contribution requirements for a social insurance old-age pension.

Old-age income supplement (means tested): Paid if assets and income, including the special old-age pension, are less than a minimum established by law. See Family Allowances.

Disability pension (social insurance): Must be aged 18 to the retirement age with an income test and have either an assessed degree of disability of at least 60% (from one or more impairments), of at least 40% (one impairment must be assessed as at least 25%), or of at least 50% (for a housewife with a disability). There is no minimum qualifying period.

Must not be able to support him or herself from employment, have at least a 50% assessed loss of earning capacity, and have no or limited income from employment.

The full pension is paid with an assessed degree of disability of at least 75% and monthly income from employment less than the national average monthly wage.

The national average monthly wage is 9,906 new shekels.

Partial disability: Paid for an assessed degree of disability of up to 74%.

Incentive pension (income tested): Must have received a disability pension for at least 12 consecutive months and have income from employment exceeding an amount specified by law, which varies depending on the severity of the medical impairment and the period of entitlement to a disability pension.

Additional monthly pension (AMP): Must have at least a 50% assessed degree of disability (at least 40% for a cognitive developmental disability or mental illness), and at least a 75% assessed loss of earning capacity. Must not reside in an institution where a public body pays over 50% of the expenses.

Graduated AMP: Paid to persons who received the AMP but are no longer eligible because their income from employment exceeds the limit for the normal disability pension.

Dependent's supplement (income tested): Paid for each of the first two dependent children up to age 18 (older if studying, volunteering or in a pre-army framework), and for a dependent spouse with earnings below 57% of the national average monthly wage. Dependents must not be receiving benefits. (A housewife with a disability is entitled to a supplement for her children only.)

Constant-attendance supplement: Paid if the insured requires the constant attendance of others to perform daily functions. Must have at least a 60% assessed degree of disability and be receiving a disability pension (or at least a 75% assessed degree of disability and subject to an earnings test).

Special benefit: Must be receiving the constant-attendance supplement.

A medical committee assesses the degree of disability.

Disabled child benefit (social insurance): Paid for a child younger than age 18 with a disability, not living in an institution or with a foster family, and not receiving a mobility allowance (unless the child's parent has two children, both with disabilities, and under certain other circumstances).

Benefit supplements: Paid to cover the cost of school supplies.

A medical committee assesses the degree of disability.

Mobility allowance (social assistance): Must be aged 3 to 67 with an assessed loss of mobility of at least 40% (with a valid driver's license) or 60% (without a valid driver's license if there is an authorized driver).

A medical committee assesses the degree of disability.

Long-term care benefit (social insurance, income tested): Must have reached age 67 (men) or age 62 (women, gradually rising to age 64 by 2022), not live in an institution, and require the constant attendance of others to perform daily functions.

Income test: The benefit is paid to an individual with monthly income less than 1.5 times the national average monthly wage, to a couple with monthly income less than 2.25 times the national average monthly wage, or to a person with dependent children with additional monthly income less than 0.75 times the national average monthly wage for each child.

The national average monthly wage is 9,906 new shekels.

Survivor pension (social insurance): Paid if an insured person dies from any cause, except war or hostile action. The deceased had 12 months of contributions in the year before death, at least 24 months in the last five years, at least 60 months in the last 10 years, or met the contribution requirement for a social insurance old-age pension. There is no minimum qualifying period if the insured died within a year of immigration, or before the age of 19; was the main source of support for a spouse or children; or was a housewife or widow.

Eligible survivors include a widow(er) aged 40 or older or caring for a dependent child; and children younger than age 18 (age 20 if in higher education or the pre-military framework, age 21 if in military or volunteer service, up to age 24 under certain conditions) for whom no child increment is paid to a widow(er).

A widow must have been married to (or been the common-law spouse of) the deceased for at least one year (six months if aged 55 or older) at the time of his death or had a child with the deceased.

A widower must have been married to (or been the common-law spouse of) the deceased for at least one year (six months if aged 55 or older) at the time of her death and must either have a child living with him or meet an earnings test.

In most cases, the survivor's pension ceases upon remarriage.

Child increment: Paid to a widow(er) with dependent children.

Seniority increment: Paid if the deceased had more than eight years of contributions.

Remarriage grant: Paid to a widow(er) upon remarriage.

Bar Mitzvah grant: Paid to orphans at age 13 (boys) or age 12 (girls).

Spouse's and orphan's income supplement (means tested): Paid to recipients of the survivor's pension if assets and income, including the survivor pension and other benefits, are less than a minimum established by law. See Family Allowances.

The survivor pension is payable abroad under bilateral agreement.

Special survivor pension (social assistance, means tested): Paid to a widow and orphans of a person who resided in Israel but did not meet the age requirements to be insured at the time of immigration.

Spouse's grant (social insurance): Paid to a widow(er) younger than age 40 without dependent children or to a widower no longer eligible for a survivor pension.

Funeral grant: Paid to the organization responsible for the funeral when a resident of Israel dies.

Death grant (social insurance): Paid to a widow(er) or children of an old-age, disability, or survivor pensioner or income support beneficiary.

Old-Age Benefits

Old-age pension (social insurance, income tested): 17.7% of the monthly old-age basic amount is paid. An additional 1% is paid to pensioners aged 80 or older.

The monthly old-age basic amount is 8,674 new shekels.

Income test: If the insured is younger than the retirement age without an income test, the pension is reduced by 0.60 new shekels for every new shekel of monthly income above 57% (individuals) or 76% (with dependents, depending on the number of dependents) of the national average monthly wage.

The national average monthly wage is 9,906 new shekels.

Deferred pension: The pension is increased by 5% for each year of deferral.

Dependent's supplement (income tested): 8.9% of the monthly old-age basic amount is paid for an eligible spouse and 5.6% for each of the first two eligible children.

Seniority increment: The pension is increased by 2% for each year of contributions exceeding four years, up to 50% of the pension.

Old-age income supplement (means tested): 36.77% to 74.26% of the monthly old-age basic amount, depending on marital status and the number of dependent children, is paid to a pensioner younger than age 70; 37.13% to 74.83% if aged 70 to 79; or 37.49% to 75.40% if aged 80 or older. The resulting amount is increased by an additional 7% for all age groups.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Special old-age pension for new immigrants (social assistance, means tested):

Calculated in the same way as the social insurance old-age pension.

Old-age income supplement (means tested): 36.77% to 74.26% of the monthly old-age basic amount, depending on marital status and the number of dependent children, is paid to a pensioner younger than age 70; 37.13% to 74.83% if aged 70 to 79; and 37.49% to 75.40% if aged 80 or older. The resulting amount is increased by an additional 7% for all age groups.

The monthly old-age basic amount is 8,674 new shekels.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Permanent Disability Benefits

Disability pension (social insurance): 25% of the monthly disability basic amount plus an additional 7% of the resulting amount is paid.

The monthly disability basic amount is 8,783 new shekels.

Partial disability: A percentage of the full disability pension is paid based on the assessed degree of disability.

Incentive pension: For an assessed degree of disability of at least 75%, up to a full disability pension is paid depending on the insured's income; for an assessed degree of disability of up to 74%, a pension is paid based on the insured's earning capacity or a schedule in law (whichever is lower).

Additional monthly pension (AMP): 20.6% of the disability pension is paid with an assessed degree of disability of at least 80%; 16% with an assessed degree of 70% to 79%; 11.5% with an assessed degree of 50% to 69%.

Graduated AMP: The full AMP amount is paid in the first year, 75% in the second year, 50% in the third year, 25% in the fourth year, and none in the fifth year.

Dependent's supplement (income tested): Up to 12.5% of the monthly disability basic amount is paid for an eligible spouse; 10% for each of the first two eligible children. An additional 7% is paid for both categories.

Constant-attendance supplement: 50%, 111.9%, or 188% of the full disability pension is paid, depending on the assessed degree of dependence.

Special benefit: 14%, 28.5%, or 42.5% of the full disability pension is paid, depending on the assessed degree of dependence.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Disabled child benefit (social insurance): 50% to 188% of the full disability pension is paid, depending on the assessed degree of disability. An increment of 50% of the benefit is paid for each additional child assessed with a disability.

Benefit supplements: The cost of schooling for students with disabilities and an additional benefit for children with severe disabilities is paid.

The maximum total disabled child benefit is 140% of the full disability pension.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Mobility allowance (social assistance): The monthly benefit varies depending on whether the insured has earned income, has a driver's license, and owns a car. Additional cash benefits may be provided to help cover car taxes and costs resulting from a loss in mobility.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Long-term care benefit (social insurance, income tested): 1,955 new shekels a month is paid if the beneficiary is largely dependent on the help of others; 3,208 new shekels a month if severely dependent; 3,610 new shekels a month if completely dependent. Benefits are normally paid directly to the organization providing the long-term care services. (If long-term care services are not available and the beneficiary lives with and is cared for by a family member, the benefit is paid directly to the caregiver. If he or she employs a full-time Israeli caregiver, the benefit is 3,810 if severely dependent; 4,412 if completely dependent.)

Income test: The benefit is reduced by 50% if the insured's monthly income exceeds the national average monthly wage for a single person; by 50% if monthly income exceeds 1.5 times the national average monthly wage for a couple, plus 0.5 times the national average monthly wage for each child, up to a maximum.

The national average monthly wage is 9,906 new shekels.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Survivor Benefits

Survivor pension (social insurance)

Spouse's pension: 17.7% of the monthly old-age basic amount is paid to a widow(er) aged 50 or older or caring for a child; 13.3% to a widow(er) aged 40 to 49 with no children.

The monthly old-age basic amount is 8,674 new shekels.

Child increment: 8.3% of the monthly old-age basic amount is paid for each eligible child.

Seniority increment: The pension is increased by 2% for each year of the deceased's years of contributions exceeding eight years, up to 50% of the spouse's pension.

If a widow(er) also receives the old-age pension, the spouse's pension is reduced by 50%.

Remarriage grant: 36 months of the spouse's pension is paid in two equal parts (the first upon marriage, the second two years later).

Spouse's income supplement (means tested): 30.3% to 63.4% of the monthly old-age basic amount minus 140 new shekels is paid to a widow(er) depending on his or her age and the number of children. The resulting amount is increased by an additional 7%.

Orphan's pension: 11% of the monthly old-age basic amount is paid for one eligible child not covered by the spouse's pension child increment; 8.3% each if there is more than one child; 11% for each full orphan.

The monthly old-age basic amount is 8,674 new shekels.

Bar Mitzvah grant: A lump sum of 5,855 new shekels is paid.

Orphan's income supplement (means tested): 25% of the monthly old-age basic amount minus 140 new shekels is paid to a full orphan or abandoned child; 37.5% minus 280 new shekels for two full orphans or abandoned children. An increment of 10% of the monthly old-age basic amount is paid for each additional full orphan or abandoned child.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Special survivor benefit (social assistance, means tested): The benefits are the same as those for the social insurance spouse's and orphan's pensions.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Spouse's grant (social insurance): A lump sum of 36 months of the spouse's pension is paid to a widow(er) younger than age 40 with no children.

Funeral grant: The cost of the burial is paid, up to a maximum, to the organization responsible for the funeral.

Death grant (social insurance): A lump sum of the monthly disability basic amount is paid.

The monthly disability basic amount is 8,783 new shekels.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Administrative Organization

Ministry of Social Affairs (https://www.molsa.gov.il/) provides general supervision.

National Insurance Institute (https://www.btl.gov.il/) administers the programs, collects contributions, and pays benefits through its branch offices.

Sickness and Maternity

Regulatory Framework

First and current laws: 1953 (national insurance), implemented in 1954; 1976 (vacation pay for adoptive parents); 1986 (birth allowance); 1990 (at-risk pregnancy benefit); 1997 (paternity allowance); and 1995 (national health insurance).

Type of program: Social insurance system.

Coverage

Cash sickness benefit: Employees are covered under collective agreements. (Cash sickness benefits are not provided under the 1953 law.)

Cash maternity and paternity benefits: Employed persons, self-employed persons, and persons aged 18 or older in vocational training.

Maternity grant: Insured women or the wife of an insured person; persons working in but not residing in Israel, including self-employed persons.

Medical benefits: Residents of Israel.

Source of Funds

Insured person: 3.1% of earnings up to and 5% of earnings above 60% of the national average monthly wage (medical benefits); 0.04% of earnings up to and 0.87% of earnings above 60% of the national average monthly wage (maternity benefits).

For persons whose primary source of income is not from work, 5% of unearned income (medical benefits); 0.11% of unearned income up to and 0.26% of unearned income above 60% of the national average monthly wage (maternity benefits).

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The legal monthly minimum wage is 5,300 new shekels.

The maximum monthly earnings used to calculate contributions are five times the monthly old-age basic amount.

The monthly old-age basic amount is 8,674 new shekels.

Self-employed person: 3.1% of earnings up to and 5% of earnings above 60% of the national average monthly wage (medical benefits); 0.24% of earnings up to and 0.94% of earnings above 60% of the national average monthly wage (maternity benefits).

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are 25% of the national average monthly wage.

Employer: None (medical benefits); 0.11% of earnings up to and 0.53% of earnings above 60% of the national average monthly wage (maternity benefits).

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The legal monthly minimum wage is 5,300 new shekels.

The maximum monthly earnings used to calculate contributions are five times the monthly old-age basic amount.

The monthly old-age basic amount is 8,674 new shekels.

Government: None (medical benefits); 0.09% of earnings (maternity benefits); contributes as an employer (maternity benefits); subsidizes the birth allowance and the hospitalization grant; and subsidizes total contributions (see source of funds under Old-Age, Disability, and Survivors).

Qualifying Conditions

Cash sickness benefit: Employees are covered under collective agreements. (Cash sickness benefits are not provided under the 1953 law.)

Cash maternity and paternity benefits (social insurance): The full benefit is paid with at least 10 months of contributions in the last 14 months or at least 15 months in the last 22 months. A partial benefit is paid with at least six months but less than 10 months of contributions in the last 14 months.

Under certain conditions, a father with at least 10 months of contributions in the last 14 months or at least 15 months in the last 22 months may share the benefit with the mother.

Adoption and foster benefit (social insurance): Paid for the cessation of work to adopt (or foster for at least half a year) a child younger than age 10. At least one of the adoptive or foster parents must have at least 10 months of contributions in the last 14 months or at least 15 months of contributions in the last 22 months. The benefit may be paid to the father who ceases work for at least 21 days when the mother returns to work. A partial benefit is paid with at least six months but less than 10 months of contributions in the last 14 months.

At-risk pregnancy benefit (social insurance): Paid for the cessation of work due to a risk to the pregnancy. Must be authorized by an obstetrician, have at least 10 months of contributions in the last 14 months or at least 15 months of contributions in the last 22 months, and not be receiving a similar payment from any other source.

Cash maternity grant (social insurance): Paid for the purchase of a layette for a newborn child. If not residing in Israel, the woman or her husband must have worked in Israel for at least six months immediately before childbirth. The birth must occur in Israel.

Adoption grant (social insurance): Paid for the adoption of a child younger than age 10.

Multiple birth allowance: Paid for the birth of three or more children, if at least three survive past 30 days. The mother must be entitled to the maternity grant.

Hospital transportation costs (social insurance): Provided for women who travel by ambulance to the hospital nearest the woman's residence and give birth within three days of arrival.

Special allowance and special benefit (social insurance): Paid for a mother who was insured for the maternity grant and who died while giving birth or within a year of giving birth, if the spouse stops working to care for the child(ren).

Benefits are payable abroad under bilateral agreement.

Medical benefits: There is no minimum qualifying period.

Hospitalization grant: Paid for necessary hospitalization for a birth.

The hospitalization grant may be payable abroad under bilateral agreement.

Sickness and Maternity Benefits

Sickness benefit: Benefits are provided to employees under collective agreements; 75% to 100% of earnings is paid for at least 90 days.

Maternity allowance (social insurance): 100% of the insured's average daily net income in the three months before the day on which the insured woman ceased working is paid for up to 15 weeks; eight weeks for a partial benefit. (May be extended if the mother or child is hospitalized during the maternity leave or in the case of multiple births.)

The maximum daily maternity allowance is 1,463.83 new shekels.

Paternity allowance (social insurance): Calculated in the same way as the maternity allowance. The paternity leave period must be taken for at least seven consecutive days.

Adoption and foster benefit (social insurance): For a child up to age 3, 100% of the insured's average daily net income in the three months before the day of adoption, or the day of receiving the child into their home for foster care, is paid for up to 15 weeks; eight weeks for a partial benefit. For a child older than age 3, 100% of the insured's average daily net income in the three months before the day of the adoption or the beginning of foster care is paid for up to four weeks.

At-risk pregnancy benefit (social insurance): For each day the mother is not working because of a risk to the pregnancy, the benefit is 100% the insured woman's income in the three months before the day she ceased working divided by 90.

The maximum daily at-risk pregnancy benefit is the monthly disability basic amount divided by 30.

The monthly disability basic amount is 8,783 new shekels.

Maternity and adoption grants (social insurance): A lump sum of 1,757 new shekels is paid for the first child, 790 new shekels for the second child, and 527 new shekels for the third and each additional child (the amounts are increased for multiple births).

Multiple birth allowance: A percentage of the monthly disability basic amount is paid for 20 months.

The monthly disability basic amount is 8,783 new shekels.

Hospital transportation costs (social insurance): A fixed amount is paid for the cost of transportation to the hospital.

Special allowance (social insurance): For 24 months after the birth of a child, 30% of the national average monthly wage is paid to the child's father or guardian for each child born; for 12 months if the spouse is also receiving survivor or dependent benefits.

The national average monthly wage is 9,906 new shekels.

Special benefit (social insurance): A benefit equal to the injury allowance (see Work Injury) is paid for up to 12 weeks.

Workers' Medical Benefits

Doctors provide services in hospitals owned and operated by, or under contract with, a sickness fund. Benefits include general and specialist care, medicine, laboratory services, hospitalization, and rehabilitation.

Cost sharing: Patients pay a set amount toward the cost of drugs and appliances, which varies according to the sickness fund.

Hospitalization grant: A lump sum of 13,175 new shekels is paid directly to the hospital for hospitalization expenses for each woman giving birth.

Dependents' Medical Benefits

Medical benefits for dependents are the same as those for the insured.

Administrative Organization

Ministry of Social Affairs (https://www.molsa.gov.il/) provides general supervision.

National Insurance Institute (https://www.btl.gov.il/) administers maternity, adoption and foster benefits, collects contributions, and pays benefits through its branch offices.

Sickness insurance and medical care are administered by four funds under the supervision of the Ministry of Health (https://www.health.gov.il/), Leumit (National) Sickness Fund (https://www.leumit.co.il/), Clalit (General) Sickness Fund (https://www.clalit.co.il/he/Pages/default.aspx), Maccabi Healthcare Services (https://www.maccabi4u.co.il/), and Meuhedet (United) Sickness Fund (https://www.meuhedet.co.il/).

Work Injury

Regulatory Framework

First and current laws: 1953 (national insurance), implemented in 1954; and 1956 (self-employed persons), implemented in 1957.

Type of program: Social insurance system.

Coverage

Work-related injuries and occupational diseases: Employed and self-employed persons, vocational trainees and those undergoing vocational rehabilitation, working prisoners, foreign residents working in Israel, migrant workers working in Israel, and certain residents of Israel working abroad for Israeli employers.

Exclusions: Police, prison service, and defense force employees.

Non-work-related injuries: Residents of Israel.

Source of Funds

Insured person

Work-related injuries and occupational diseases: None.

Non-work-related injuries: 0.01% of earnings up to and 0.07% of earnings above 60% of the national average monthly wage.

For persons whose primary source of income is not from work, 0.04% of unearned income up to and 0.11% of unearned income above 60% of the national average monthly wage.

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are 25% of the national average monthly wage.

Self-employed person

Work-related injuries and occupational diseases: 0.17% of earnings up to and 0.78% of earnings above 60% of the national average monthly wage.

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are 25% of the national average monthly wage.

Non-work-related injuries: 0.06% of earnings up to and 0.08% of earnings above 60% of the national average monthly wage.

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are 25% of the national average monthly wage.

Employer

Work-related injuries and occupational diseases: 0.37% of earnings up to and 1.96% of earnings above 60% of the national average monthly wage.

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The legal monthly minimum wage is 5,300 new shekels.

The maximum monthly earnings used to calculate contributions are five times the monthly old-age basic amount.

The monthly old-age basic amount is 8,674 new shekels.

Non-work-related injuries: 0.01% of earnings up to and 0.06% of earnings above 60% of the national average monthly wage (accident).

The national average monthly wage is 9,906 new shekels.

Government

Work-related injuries and occupational diseases: 0.03% of insured and self-employed persons' earnings; contributes as an employer; subsidizes total contributions (see Old Age, Disability, and Survivors).

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The legal monthly minimum wage is 5,300 new shekels.

The maximum monthly earnings used to calculate contributions are five times the monthly old-age basic amount.

The monthly old-age basic amount is 8,674 new shekels.

Non-work-related injuries: 0.02% of insured and self-employed persons' earnings.

Qualifying Conditions

Temporary disability benefit (injury allowance): Paid for a temporary work incapacity and absence from work as the result of a work injury or occupational disease. Accidents that occur while travelling to and from work are covered. There is no minimum qualifying period.

Accident allowance: Paid for a temporary work incapacity and absence from work as the result of a non-work related accident. (For housewives, incapacity to run the household, and for persons whose primary source of income is not from work, hospitalization or inability to leave home.) Must be aged 18 or older but younger than the retirement age without an income test and not receiving a similar payment from any other source. Must undergo a medical examination within three days. There is no minimum qualifying period.

Temporary disability pension: Paid to a worker assessed with a temporary degree of disability of at least 9%. There is no minimum qualifying period.

Permanent disability pension: Paid to a worker assessed with a permanent degree of disability of at least 20%. There is no minimum qualifying period.

Disability grant: Paid to a worker assessed with a permanent degree of disability of at least 9% but less than 20%. There is no minimum qualifying period.

Special pension and special grant: Paid for an assessed degree of disability of at least 75%; 65% to 74% for persons with difficulty walking.

Dependents' pension (income tested): Paid to a widow aged 40 or older; at any age with a dependent child or if unable to support herself. Paid to a widower with a dependent child, without children if aged 40 or older and unable to support himself or with a monthly income below 4,569 new shekels. The pension ceases upon remarriage.

Dependents' grant: Paid to a widow(er) not entitled to a survivor pension.

Remarriage grant: Paid to a widow(er) upon remarriage.

Bar-Mitzvah grant: Paid to orphans at age 13 (boys) and age 12 (girls).

Death grant (work injury-related death): Paid to the deceased's spouse and children if the deceased received a disability pension with an assessed degree of disability of at least 50%, had reached the retirement age for the earnings-tested old-age pension, or received a dependent's allowance.

Death grant (nonwork injury-related death, income tested): Paid to the deceased's spouse and children if the deceased had an assessed degree of disability of at least 50% for at least 36 months before death and received a work injury disability pension throughout this period. The deceased's spouse's average income must not be greater than twice the national average monthly wage in the year preceding the death.

The national average monthly wage is 9,906 new shekels.

Funeral grant: Paid for the insured's funeral.

Temporary Disability Benefits

Temporary disability benefit (injury allowance): The daily benefit is 75% of covered earnings in the three months before the work injury occurred or the occupational disease began divided by 90.

The benefit is paid after a two-day waiting period (waived if the incapacity for work lasts at least 12 days) for up to 13 weeks. The National Insurance Institute pays the benefit and is reimbursed by the employer for the first 12 days. Self-employed persons are ineligible for the benefit for the first 12 days of incapacity.

The maximum daily benefit is the monthly disability basic amount multiplied by five and divided by 30.

The monthly disability basic amount is 8,757 new shekels.

Accident allowance: The daily benefit is the same as that for work injury. (For housewives and persons whose primary source of income is not from work, 25% of the monthly disability basic amount divided by 30 is paid.)

The benefit is paid after a two-day waiting period (waived if the incapacity for work lasts at least 12 days) for up to 13 weeks. Housewives and persons whose primary source of income is not from work are ineligible for the benefit for the first 14 days of incapacity.

The minimum daily benefit is 25% of the monthly disability basic amount divided by 30.

The monthly disability basic amount is 8,757 new shekels.

Temporary disability pension: A percentage of the insured's monthly wage is paid based on the assessed degree of medical disability.

Permanent Disability Benefits

Permanent disability pension: For a total (100%) disability, the monthly pension is 75% of the insured's earnings.

Partial disability: A percentage of the full permanent disability pension is paid based on the insured's earnings and assessed degree of disability.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Disability grant: A lump sum of 43 months of the permanent disability pension is paid.

Special pension: Financial aid for personal expenses and transportation is paid, up to a maximum.

Special grant: A lump sum of 57,532 to 95,705 new shekels is paid for housing modifications; 17,903 to 35,813 new shekels for acquiring special accessories needed due to the disability; persons with reduced mobility may receive additional benefits for purchasing a car (under special conditions).

Workers' Medical Benefits

Doctors provide services in hospitals owned and operated by, or under contract with, a sickness fund. Benefits include general and specialist care, medicine, laboratory services, hospitalization, and rehabilitation.

Cost sharing: Patients pay a set amount toward the cost of drugs and appliances, which varies according to the sickness fund.

Survivor Benefits

Survivor pension

Dependents' pension (income tested): 40% to 100% of the old-age or disability pension the deceased received or was entitled to receive if assessed with a total disability is paid, depending on the number of children and the age of the widow(er); 20% for the first orphan and 10% each for the second and third. If there is no widow(er) entitled to the survivor pension, 60% is paid to the first orphan, 20% for the second, and 10% each for the third and fourth. If there is no eligible widow(er) or orphan, 50% is paid to one dependent, up to 100% for four or more dependents.

Dependents' grant: A lump sum of 36 months of the dependents' pension is paid.

Remarriage grant: A lump sum of 36 months of the dependents' pension is paid in two equal parts (the first on marriage, the second two years later).

Bar Mitzvah grant: See Old Age, Disability, and Survivors.

Death grant (work injury-related): See Old Age, Disability, and Survivors.

Death grant (nonwork injury-related): A lump sum of 60% of the old-age or disability pension the deceased received or was entitled to receive if assessed with a total disability multiplied by 36 is paid in two equal parts.

Funeral grant: See Old Age, Disability, and Survivors.

Administrative Organization

Ministry of Social Affairs (https://www.molsa.gov.il/) provides general supervision.

National Insurance Institute (https://www.btl.gov.il) administers the program, collects contributions, and pays benefits through its branch offices.

Unemployment

Regulatory Framework

First and current laws: 1970 (unemployment insurance) and 1973 (payment of benefits).

Type of program: Social insurance system.

Coverage

Employed permanent and temporary residents of Israel, including certain military personnel.

Voluntary coverage for persons who work for diplomatic missions in Israel.

Exclusions: Self-employed persons.

Source of Funds

Insured person: 0.01% of earnings up to and 0.21% of earnings above 60% of the national average monthly wage.

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The legal monthly minimum wage is 5,300 new shekels.

The maximum monthly earnings used to calculate contributions are five times the monthly old-age basic amount.

The monthly old-age basic amount is 8,674 new shekels.

Self-employed person: Not applicable.

Employer: 0.03% of earnings up to and 0.16% of earnings above 60% of the national average monthly wage.

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The legal monthly minimum wage is 5,300 new shekels.

The maximum monthly earnings used to calculate contributions are five times the monthly old-age basic amount.

The monthly old-age basic amount is 8,674 new shekels.

Government: 0.06% of insured and self-employed persons' earnings; contributes as an employer; subsidizes total contributions (see Old Age, Disability, and Survivors).

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The legal monthly minimum wage is 5,300 new shekels.

The maximum monthly earnings used to calculate contributions are five times the monthly old-age basic amount.

The monthly old-age basic amount is 8,674 new shekels.

Qualifying Conditions

Must be aged 20 (aged 18 for persons who completed vocational training, military service, or in certain other cases) to 67, be involuntarily unemployed, registered at the labor exchange, and ready and able to perform any suitable work.

Must have at least one day of paid contributions in at least 12 work months in the 18 months before unemployment began; 100 days of paid contributions in the 12 months before unemployment if younger than age 20

Work months may include periods in which the insured received sickness, maternity, or work injury benefits, periods of military service, and certain other periods.

Unemployment Benefits

25% to 80% of the insured's average daily covered wage in the six months before unemployment is paid daily, depending on the insured's age and income.

The maximum daily unemployment benefit is 396.24 new shekels for the first five months and 264.16 new shekels from the sixth month onward. The benefit is paid after a five-day waiting period (the waiting period is applied each time the insured receives unemployment benefits for four consecutive months).

The benefit is paid for up to 50 to 175 days, depending on the insured's age and number of dependents.

Administrative Organization

Ministry of Social Affairs (https://www.molsa.gov.il/) provides general supervision.

National Insurance Institute (https://www.btl.gov.il/) administers the program, collects contributions, and pays benefits through its branch offices.

Family Allowances

Regulatory Framework

First law: 1959.

Current laws: 1975 (children's insurance), 1984 (income test), and 1993 (universal).

Type of program: Universal and social assistance system.

Coverage

Residents of Israel.

Source of Funds

Insured person: None.

For persons whose primary source of income is not from work, 1.1% of unearned income up to and 2.64% of unearned income above 60% of the national average monthly wage.

The national average monthly wage is 9,906 new shekels.

Self-employed person: 0.59% of earnings up to and 2.74% of earnings above 60% of the national average monthly wage.

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The legal monthly minimum wage is 5,300 new shekels.

Employer: 1.32% of earnings up to and 2.08% of earnings above 60% of the national average monthly wage.

The national average monthly wage is 9,906 new shekels.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The legal monthly minimum wage is 5,300 new shekels.

The maximum monthly earnings used to calculate contributions are five times the monthly old-age basic amount.

The monthly old-age basic amount is 8,674 new shekels.

Government: 0.08% of insured and self-employed persons' earnings; funds the study grant and payments to new immigrant children and the total cost of social assistance income support programs; and subsidizes total contributions (see Old Age, Disability, and Survivors).

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The legal monthly minimum wage is 5,300 new shekels.

The maximum monthly earnings used to calculate contributions are five times the monthly old-age basic amount.

The monthly old-age basic amount is 8,674 new shekels.

Qualifying Conditions

Family allowance (universal): Paid to families with unmarried children younger than age 18 who reside in Israel.

Family allowance increment (universal): Paid to families with at least three eligible children and receiving certain other National Insurance benefits.

Income support benefit (social assistance, means tested): Must have at least 24 months of continuous residence (12 cumulative months for new immigrants) and satisfy means and employment tests. Some conditions are waived for orphans, and individuals receiving certain benefits.

Benefits are payable abroad under bilateral agreement.

Maintenance allowance (social assistance, income tested): Paid to a female resident with a judgment for maintenance (awarded when the husband fails to pay child maintenance), and who is caring for at least one child, aged 60 or older, or unable to maintain herself. Paid to a child possessing a judgment for maintenance and not in the custody of his or her mother, the state, or a local authority.

Income test: Income from work and other sources must not exceed a maximum that varies depending on family composition.

Study grant (universal): Paid for children aged 6 to 18.

Eligible beneficiaries include single-parent families; parents with four or more children and receiving certain other National Insurance benefits; orphans or abandoned children; children who immigrated to Israel without an insured parent; some women residing in battered women shelters; and persons receiving their own income support benefits.

Family Allowance Benefits

Family allowance (universal): For children born before June 1, 2003: 150 new shekels a month is paid for the first eligible child; 189 new shekels a month for the second and third child; 336 new shekels for the fourth child; and 354 new shekels a month for the fifth and each additional child.

For children born on or after June 1, 2003: 150 new shekels a month is paid for the first child; 189 new shekels a month for the second, third, and fourth child; and 150 new shekels a month for the fifth and each additional child.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Family allowance increment (universal): 70% of the monthly family allowance basic amount is paid for each of the third and fourth children.

The monthly family allowance basic amount is 140 shekels.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Income support benefit (social assistance, means tested): 20% to 25% of the monthly old-age basic amount is paid to an individual pensioner; 27.5% to 37.5% to a couple without children; 30% to 43.5% to a couple with one child; 33.5% to 49.5% to a couple with two or more children. The benefit amount varies by age. Widows, separated persons, and single parents and orphans receive a greater benefit.

The monthly old-age basic amount is 8,674 new shekels.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Maintenance allowance (social assistance, income tested): 20% to 52.5% of 8,674 new shekels a month is paid, depending on the beneficiary's age and number of dependent children; 10% to 37.5% is paid to children who receive the benefit directly.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Study grant (universal): 11.6% of the monthly old-age basic amount is paid for each eligible child at the beginning of the school year.

The monthly old-age basic amount is 8,674 new shekels.

Benefit adjustment: Benefits are adjusted annually in January based on the increase in the consumer price index in the previous year.

Administrative Organization

Ministry of Social Affairs (https://www.molsa.gov.il/) provides general supervision.

National Insurance Institute (https://www.btl.gov.il/) administers the programs, collects contributions, and pays benefits through its branch offices.