Exemption from insurance contributions

The following pension recipients are exempt from paying national and health insurance contributions from their pension, and therefore the payer of the pension should not deduct insurance contributions:

• A person who is insured and has reached retirement ageThe age at which you will be entitled to the old-age pension, on condition that your income from work and from other sources does not exceed a certain amount. Income from work pension is not taken into account. Retirement is set at age 67 for men and 62-65, according to birth date, for women..
• A married woman who does not work and her husband is insured, even if she has not yet reached retirement age.
• A person who is insured and retired on the 2^nd of the month onwards – on that month national insurance contributions will not be deducted from the pension, but only from the following month onwards.
• The dependant relatives of a pensioner will be exempt from payment of insurance contributions from their dependants' pension in any case.

The following pension recipients are exempt from paying national and health insurance contributions only if a signed authorization from the National Insurance Institute is presented to the payer of the pension. In the following cases the payer of the pension will not deduct insurance contributions:

• A widow receiving dependants' benefit or work related dependents pension from the NII.
• A disabled insured person receiving from the NII a temporary general disability pension at a rate of 75% for a period of at least one year or a permanent general disability pension at a rate of 75% or a permanent work disability benefit of 100%.
• A person who is insured and his monthly income as an employee is greater than the maximum income liable for the payment of insurance contributionsThe amount of maximum income on which insurance contributions are paid. Insurance contributions are not paid on any income that is above this maximum. The maximum is updated every year in accordance with the rate of the rise in the Consumer Price Index.  – NIS 49,030 (as of Jan 01, 2024).
• A person who is insured and his monthly income as a self-employed is greater than the maximum income liable for the payment of insurance contributions – NIS 49,030 (as of Jan 01, 2024).
• A person who is insured but is not an Israeli residentA person whose life is centered in Israel. Criteria for determining this include: Israel is your permanent place of residence, where your family resides, where your children go to school, your primary place of work, or where you are studying. .