Deductions from the pension payments


  • Exemption from payment of insurance contributions
  • Deduction of debts to the NII
  • Deductions under the Health Insurance Law
  • Deductions from the benefit for the "Israel Organization of Work Accidents – Disabled and Widows".

Exemption from payment of insurance contributions

  • A person who receives a work disability pension and who has no other income is exempt from insurance contributions for the period of time for which he is entitled to a pension. 
  • A person who receives a work disability pension and has a permanent work disability degree of 100% is exempt from payment of insurance contributions for the period for which he is entitled to a pension, even if he has other income. If he is self-employed, he must pay insurance contributions for work injury; if he is a salaried employee, his employer must pay insurance contributions for him/her for work injury and bankruptcy insurance. 

Deductions made by the National Insurance

Deduction of debts to the National Insurance Institute

The National Insurance Institute may offset from the work disability pension a debt owed by the insured for insurance contributions or advances received by the insured on account of the pension or of other benefits, amounts paid to the insured erroneously or illegally, and alimony or child support due from him by judgment of a court.

If a person received an income support benefit for the period of time in which he was entitled to receive a work disability pension retroactively, the National Insurance Institute may deduct from the work disability pension the amount of the income support benefit that he received for that period of time.

Deductions of debt in work disability grant

The insured who received a work disability grant, and because of an appeal or deterioration of health condition his degree of disability has been raised and is now entitled to receive an allowance instead of the grant paid to him - will incur a debt for the grant received.
In this case, the allowance will be offset in full by the grant debt.
The insured is able to arrange for debt installments, within 45 days since receipt of the letter notifying him of the existence of the grant debt.

Deductions under the Health Insurance Law

Work disability pensions are subject to deduction of health insurance contributions. Until retirement age, the deduction is NIS 116 (as of Jan 01, 2024). After that age, the deduction is NIS 223 (as of Jan 01, 2024) for an individual and NIS 321 (as of Jan 01, 2024) for a couple.

The following are exempt from the deduction of health insurance contributions from work disability benefit :

  • A married woman - a woman who is married to an insured person or whose common law spouse is insured, who doesn't work outside of her household.
  • A foreign resident or a resident of the Territories.
  • A child up to age 18.
  • A soldier in compulsory service.
  • A salaried employee or self-employed worker will only pay insurance contributions on his income and not on the benefit.
  • A person receiving an early pension (except for a person with a 100% disability).
  • A person who has reached retirement age and who is not entitled to old-age pension because his income is over the income.

Deductions from the pension in favor of the Israel Organization of Work Accidents

Disabled and Widows.  If a permanent degree of work disability has been established for someone, the National Insurance Institute may deduct from his pension membership dues in the  Israel Organization of Work Accidents – Disabled and Widows, as well as payments to the Organization’s mutual assistance fund and payments for mutual life insurance arranged by the Organization. Objections to the deduction must be submitted in writing to the National Insurance Institute. The deduction will cease one month after receipt of such notification.

Reduction, delay or ruling out of pension

The National Insurance Institute may reduce, delay or rule out the work disability pension if the disabled person, without justification, disobeys a doctor's orders meant to speed up recuperation, revive work capacity or reduce disability degree, or if he disobeys an order given to him under law regarding his vocational rehabilitation.

Print
Send to a friend