If a person who receives an unemployment benefit has income from work or from occupation (self-employed) or from work pension during the period of his unemployment – this income shall be deducted from his unemployment benefit.
The deduction is made in accordance to the type of income.
Income from work as salaried employee
If you are working as a salaried employee and, at the same time, a recipient of unemployment benefits, you may continue to receive unemployment benefits after deduction of your income from work.
Your income from work will be deducted from the benefits in the following manner:
Calculation of average daily income from work - we divide your gross salary by the number of days you have worked. Example: if, in the month in which you receive unemployment benefits, you have worked 3 days for a salary of 300 NIS, then your average daily income will amount to 100 NIS.
Deduction of daily income from benefit per day - If your average daily income from work is lower than unemployment benefit per day, you will only receive the difference, and if your average daily income from work is higher than unemployment benefit per day, you will not receive unemployment benefits.
Example: Assuming you receive unemployment benefits per day of 150 NIS and have worked for a daily wage of 100 NIS, then for the days you have worked you will receive unemployment benefits amounting to 50 NIS per day, and for the other days of unemployment in the month, you will be paid full unemployment benefits at 150 NIS per day.
If you have worked only a few days per month and related income is lower than unemployment benefit per day due you, you may submit a request to Employment Service not to account those days as part of your unemployment days. This way, you will receive unemployment benefit only for the days on which you did not work and without deduction of income from work whatsoever.
Please note, you need to provide the National Insurance Institute, each month, with salary slip mentioning the number of working days and amount of salary.
You can easily send the salary slip on the website.
Despite the above, if after your first appearance at Employment Service, you have found a job with a salary that is lower than unemployment benefit due you, and you have worked at it, you may receive a grant for work at low wages, under certain conditions.
Unemployment benefit recipient who worked for two employers
If you have worked for two employers and were dismissed by one of them, you may claim unemployment benefit regarding your work for the employer who dismissed you, and continue to work for the other employer.
Unemployment benefit will be calculated according to your income from both employers in the last 6 months prior to the termination of employment. The income you continue to receive from the second employer will be deducted from your unemployment benefit.
Please note, you need to provide the National Insurance Institute, each month, with salary slip mentioning the number of working days and amount of salary.
You can easily send the salary slip on the website..
Income from work as self-employed
If you are working as a self-employed and, at the same time, a recipient of unemployment benefits, you may continue to receive unemployment benefits after deduction of your income from that work.
The self-employed's income is calculated based on yearly income and may not refer to specific months. The final calculation of the unemployment benefit due to a self-employed worker shall be made after receiving the final assessment from Income Tax Authority.
Your income from work as a self-employed will be deducted from the benefits in the following manner:
Calculation of average daily income - Your average daily income from self-employed work is divided by 12, and the result is divided again by 30.
Deduction of daily income from benefit per day - If your average daily income is lower than unemployment benefit per day, you will only receive the difference, and if your average daily income from is higher than unemployment benefit per day, you will not receive unemployment benefits.
Income from retirement pension
If you are recipient of work retirement pension at the time you receive unemployment benefits, this income will be deducted from the benefit in the following manner:
Please note, you need to provide the National Insurance Institute with a retirement pension slip for the first month in which you are claiming unemployment benefits.
You can easily send the slip on the website..
Income from benefit for the loss of working capacity (disability/medial pension)
By contrast with retirement pension, when you stopped working due to a health condition or a temporary or permanent medical problem that are not ground for compulsory retirement from work, but for which a pension was paid to you by an insurance company during that period, that income will not be considered as a retirement pension and will thus not be deducted from unemployment benefit.
However, for employers who require, in case of impaired heath condition, retirement for work as a prerequisite to receive a pension (for instance: government offices, police, prison service, etc.), the pension paid shall be considered as retirement pension and will thereby be deducted from unemployment benefit.