When do you need to proceed with coordination of insurance contributions?

Who should check if they need to proceed with coordination of insurance contributions:

• A person working in several workplaces as salaried employee.
• The recipient of an early pension who also works as a salaried employee in one or more workplaces (regarding deduction of insurance contributions – the workplace is deemed primary employer and the pension payer secondary employer).
• The recipient of early pension from two or more sources.

When you need to coordinate insurance contributions:

• If your monthly income from the primary employer or the early pension payer is below NIS 7,522 (as of Jan 01, 2024).
• If your monthly income from all employers is above the maximum income liable for payment of insurance contributions amounting to NIS 49,030 (as of Jan 01, 2024).
• If your monthly income from the primary employer is above NIS 7,522 (as of Jan 01, 2024) and your monthly income from all employers is below NIS 49,030 (as of Jan 01, 2024). You do not have to coordinate insurance contributions for the current year, as you received the full deduction at the reduced rate at the primary employer, but you may obtain a return on insurance contributions for previous years, if you did not receive the full deduction at the reduced rate at the primary employer.

Manner of deduction of insurance contributions from your income:

Please note that the law establishes clear rules regarding the order of deduction of insurance contributions from your income. Here is the prescribed order:

1. Income as salaried worker
2. Income as self-employed worker
3. Non-work income
4. Income from early retirement pension

This order may not be modified on demand.

Coordination of insurance contributions can be done easily and quickly

• To produce an authorization of insurance contributions coordination, click here
• To submit a claim for coordination of insurance contributions, click here