For an easy and fast benefit calculation according to your income, you can use this unemployment benefits simulator (Hebrew).
Unemployment benefit rates are calculated as percentages of the average daily salary of the unemployedThe income (subject to insurance contributions) of the unemployed person in the past 6 months that preceded the first of the month in which the period of unemployment began, divided by 150. after comparing it with the basic daily amount for calculating benefits: NIS 392 (as of Jan 01, 2024), in accordance with the following table.
Average daily salary is calculated according to total income (liable for insurance contributions) in the last six months preceding the month in which you first registered at the Employment Service Bureau, divided by 150.
Rates of unemployment benefit in percentages of the unemployed person’s average daily salary
|
From the part of the salary that is up to half the basic daily amount for calculating the benefit |
80% |
60% |
|
From the part of the salary that is higher than half the basic daily amount for calculating the benefit, up to 3/4 of the basic daily amount |
50% |
40% |
|
From the part of the salary that is higher than 3/4 of the basic daily amount for calculating the benefit, up to the full basic daily amount |
45% |
35% |
|
From the part of the salary that is higher than the basic daily amount, up to five times the basic daily amount |
30% |
25% |
An example of the calculation of unemployment benefit for an unemployed person who is 28 years of age or older:
Average daily salary for unemployed - NIS 400.
Basic daily amount for calculating benefits: NIS 392 (as of Jan 01, 2024).
|
Total daily salary |
NIS 400 |
|
|
1. From the part of the salary that is up to half the basic daily amount for calculating the benefit |
196
|
156.8
(196 X 80%) |
|
2. From the part of the salary that is higher than the basic daily amount for calculating the benefit up to 3/4 of the basic daily amount |
98
|
49
(98 X 50%)
|
|
3. From the part of the salary that is higher than 3/4 of the basic daily amount for calculating the benefit up to the full basic daily amount |
98
|
44.1
(98 X 45%) |
|
4. From the part of the salary that is higher than the basic daily amount for calculating the benefit, up to five times the basic daily amount |
8
|
2.4
(8 X 30%) |
|
Total unemployment benefit per day |
|
NIS 252.30 |
In any case, the daily unemployment benefit shall not exceed:
- An amount equivalent to the daily average wage in the economy: NIS 501.44 (as of Jan 01, 2024), for every day of payment – for the first 125 days of payment.
- An amount equivalent to two-thirds of the daily average wage in the economy: NIS 334.29 (as of Jan 01, 2024), for every day of payment – beginning from the 126th day of payment
Deductions from unemployment benefits
From unemployment benefit are deducted the following amounts:
- Income tax - income tax at source is deducted from unemployment benefits according to sections 164 and 243 of the Income Tax Ordinance and related regulations. If you hold an authorization for income tax discount or tax exemption, you have to provide it to the National Insurance, or alternatively to the Income Tax Authority in order to receive a tax refund.
- National and health insurance contributions - from unemployment benefits are deducted national insurance contributions at its minimum rate NIS 29 (as of Jan 01, 2024), and health insurance contributions based on the amount of unemployment benefit.
- Income during the period of unemployment - if during your unemployment period, you are earning work income as salaried employee, self-employed or from retirement pension, such income will be deducted from the unemployment benefits to which you are entitled. For more information, click here.
Differentials to unemployment benefits
If, after you stopped working, you received payments from your employer for the last 6 work months which are taken into account with respect to unemployment benefits calculation, you may be eligible for differentials to your unemployment benefit. In order to check your rights, please approach the Unemployment Department in your local NII branch.