Partial old age pension from retirement age to the age of entitlement to an old age pension

If you monthly work income is higher than the “maximum income” allowed per month determined by the income test - you may receive a partial pension.

How the partial pension is calculated?

as of Jan 01, 2024
The level of partial pension is calculated in two steps:

1. We deduct the maximum amount from your work income.
2. 60% of the resulting amount is deducted from the pension to which your are entitled.

For instance: a single individual earning work income of NIS 10,208 per month, his maximum amount amounts to NIS 9,208 and he is entitled to a pension with maximum seniority increment of NIS 2,604 , his partial pension will be calculated as follows:

1. Deduction of maximum income from the work income:
   NIS 10,208 -NIS 9,208 =1,000
2. Calculating 60% of the resulting amount:
   60%X1,000=600
   Deduction of the result from the pension amount:
   NIS 2,604 -600=NIS 2,004

Amount of partial pension to receive - NIS 2,004

Important information

• The minimum amount of partial pension one may receive amounts to NIS 174 .
• You may waived the partial pension and receive later on a higher pension with a pension deferral increment.