General Disability Pension recipients who have no other income or for whom the degree of incapacity has been established to be at least 75% (for one year or more) are exempt from paying National Insurance contributions as long as they are eligible to receive the pension.
- A pension recipient who has no other income will have his [[Paying Health Insurance Contributions|health insurance contribution] deducted from the pension. As of 2019 the amount deducted is 104 NIS.
Who is Eligible?
- General Disability Pension recipients of 75% or 100% (for whom at least 75% incapacity to earn a living has been established) permanently or for a temporary period of one year or more, are entitled to an exemption from National Insurance fees even if they have other income.
- Those who are self-employed must pay work injury insurance.
- The employer of those who are salaried employees must pay work injury insurance and workers’ rights in bankruptcies and corporate liquidation insurance for them.
- One who receives a general disability pension at a rate lower than 75% or for less than a year is eligible for an exemption in any of the following cases:
- He/she has no income from employment or from any other sources
- He/she has income from other sources but that income does not exceed more than 5% of the average salary (as of 2019, no more than 514 NIS).
- The exemption is given automatically to those who are entitled to it.
- The exemption is only given if the disability pension is actually paid to that person. A person who is eligible for the pension but decides it is more beneficial to forfeit it, for example someone who is eligible for 2 different pensions and has to choose between them and prefers the other (and the other pension does not grant him/her an exemption from National Insurance contributions), he/she is not eligible for the National Insurance contribution exemption on other sources of income.
- A disabled IDF veteran who is eligible for a general disability pension but prefers to receieve a pension from the Ministry of Defense accroding to the Disabled Persons Law (Remuneration and Rehabilitation).
- Because he was not actually paid a general disability pension by the National Insurance Institute, is not eligible for an exemption on his additional income because the exemption is only for those who receive the benefit in actuality.
- National Insurance Appeal 21494-06-14 Amos Talmi v. the National Insurance Institute on the Nevo website.
Laws and Regulations
- The National Insurance Law - section 351(d)
- Original translation performed by The Shira Pransky Project as part of a grant from The Fellowship Fund.