National and Health Insurance

 

National insurance is required by law (covering allowances and stipends for pensioners, widow/ers, disability, maternity, children’s allowances, industrial accidents, military service pay and unemployment).

Some employers pay part or all of employees’ compulsory contributions to the national insurance scheme.

In addition, every individual is subject to health care tax as follows:-

In 2016:

  • Up to 5,678 NIS, Employees' deduction 3.5% and 3.45% by employer (Totaling 6.95%)
  • Excess of 5,678 NIS, Employees' deduction 12% and 7.25% by employer (Totaling 19.25%)

In 2015:

  • Up to 5,556 NIS, Employees' deduction 3.5% and 3.45% by employer (Totaling 6.95%)
  • Excess of 5,556 NIS, Employees' deduction 12% and 7.25% by employer (Totaling 19.25%)

In 2014:

  • Up to 5,453 NIS, Employees' deduction 3.5% and 3.45% by employer (Totaling 6.95%)
  • Excess of 5,453 NIS, Employees' deduction 12% and 6.75% by employer (Totaling 18.75%)

In 2013:

  • Up to 5,297 NIS, Employees' deduction 3.5% and 3.45% by employer (Totaling 6.95%)
  • Excess of 5,297 NIS, Employees' deduction 12% and 6.75% by employer (Totaling 18.75%)

In 2012:

  • Up to 5,171 NIS, Employees' deduction 3.5% and 3.45% by employer (Totaling 6.95%)
  • Excess of 5,171 NIS, Employees' deduction 12% and 5.90% by employer (Totaling 17.90%)

In 2011:

  • Up to 4,984 NIS, Employees' deduction 3.5% and 3.45% by employer (Totaling 6.95%)
  • Excess of 4,984 NIS, Employees' deduction 12% and 5.90% by employer (Totaling 17.90%)

In 2010:

  • Up to 4,809 NIS, Employees' deduction 3.5% and 3.85% by employer (Totaling 7.35%)
  • Excess of 4,809 NIS, Employees' deduction 12% and 5.43% by employer (Totaling 17.43%)

In 2009:

  • Up to 4,757 NIS, Employees' deduction 3.5% and 3.85% by employer (Totaling 7.35%)
  • Excess of 4,757 NIS, Employees' deduction 12% and 5.43% by employer (Totaling 17.43%)


The percentages and bracket are constantly updated by pronouncement from the national insurance department in Israel.

The employees' share of national and health insurance is deductible from the employee, while the employers share is an additional cost to the employer

The aggregate amount of all deductions is to be reported and paid on a monthly basis on the 15th of the following month for income tax deductions and national and health insurance.