Pension deferral increment


The pension deferral increment is paid to those ineligible for a pension upon reaching retirement age for one of the following reasons:
  • They have high work income.
  • They have high income from work and from sources other than work.

Important information! Those who have high non-work income only - will not be entitled to a pension deferral increment.

Increment rate

The pension deferral increment is 5% of the pension (including the seniority increment) for each year the payment of the pension was deferred due to income from work, between retirement age and the age of entitlement.

For instance: a person who worked two years after retirement age, received a high wage which does not allow to receive a pension, and afterwards retired from work - is entitled to a 5% pension increment for each year, a total of 10%.
Therefore, if his pension amounts to NIS 2,000 including the seniority increment, he will be entitled to a pension totaling NIS 2,200.

Important information!

  • Assessment of eligibility based on income test is made between retirement age and the age of entitlement to the old-age pension (70). After the age of entitlement, the pension is independent from the income.
  • Income test is performed upon the annual verification.
  • Whether you had filed a claim after reaching retirement age and it appeared that you earned high work income during that period, your right to a pension deferral increment will be preserved, and the years in which you did not receive the pension will be taken into account in the calculation of the pension deferral increment to which you are entitled.

To avoid prejudice to your rights, and for purposes of examination and proper calculation of your income, it is important to submit a claim for old-age pension on time.

To check your eligibility for and the amount of old age pension, use this simulator.
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