Introduction:

All residents must pay health insurance contributions according to their income in accordance with the rates established in the law, except in cases that the person has an exemption from payment
Non-payment or delayed payment of health insurance fees does not affect the rights of a policyholder and does not exempt the health plan from providing the healthcare services included in the healthcare services basket
Health insurance contributions are paid in addition to National Insurance Institute contributions
Health insurance contributions on the National Insurance Institute's English website


Warning
This page deals with health insurance payments only and does not deal with national insurance.
Both National Insurance and Health Insurance are paid to the National Insurance Institute. For information on National Insurance Institute payments see the National Insurance Contributions page.

According to the National Health Insurance Law, as of January 1, 1995, every resident of Israel is covered by health insurance.

  • All Israeli residents, except those who are exempted by law, must pay health insurance contributions from all income according to the rates established in the law.
  • Health insurance contributions are collected by the National Insurance Institute, regardless of the health plan to which the beneficiary belongs. The National Insurance Institute transfers the insurance contributions to the health plans according to the criteria established by law.
  • Health insurance contribution payments are calculated according to the beneficiary's work and passive income, as well as according to the beneficiary's established status: employee, self-employed, non-working.

Who is Eligible?

Calculating Insurance Contributions

  • Contributions are calculated as a percentage of income, according to two levels:
  1. Reduced payment - Paid for the portion of gross income which is up to 60% of the average wage (5,944 NIS for 2018).
  2. Regular payment for the portion of income above 60% of the average wage and up to the maximum monthly income liable for insurance contributions (43,370 NIS, correct as of 2018).

Salaried Workers

  • The employer deducts health insurance contributions from the employee's salary according to the following calculation: 3.10% of the portion of the salary which is up to 60% of the average wage and 5.00% of the portion of income above 60% of the average wage and up to the maximum monthly income liable for insurance contributions (43,370 NIS, correct as of 2018).
  • The employer of a household employee deducts 1% for health insurance contributions from the salary of the employee.
  • Salaried Workers on Unpaid Leave:
  • For the first two months of unpaid leave, health insurance contributions are deducted from the employee's salary by the employer at a rate of 3.10% of the minimum income for paying insurance contributions, which is 172 NIS (as of 2018).
  • After two months, the employee will pay the minimum payment of 103 NIS (as of 2018) directly to the National Insurance Institute, as long as he/she is not a salaried worker or self-employed and has no income.
  • Salaried Workers on Strike
    • If the strike is spread over three full calendar months or more, the employee will pay health insurance contributions as if he/she is not working (for the amount of the payment see below.
    • If the strike was less than 3 calendar months, the employee is exempt from paying health insurance contributions for the duration of the strike.
    • The employee must inform their local national insurance branch with a declaration form of absenteeism due to illness / accident / strike / shutdown.
    • For more information see:

Self-Employed Workers

  • Self-employed workers must pay health insurance contributions directly to the National Insurance Institute according to the following calculation: 3.10% of the portion of the salary which is up to 60% of the average wage (5,944 NIS, as of 2018) and 5.00% of the portion of income above 60% of the maximum monthly income required to pay insurance (43,370 NIS, as of 2018).

Salaried Workers Who Are Also Self-Employed

  • A salaried worker who is also self-employed must pay health insurance contributions for both incomes:
    • As a salaried employee, the person will be charged by the employer up to the maximum income for payment of insurance contributions.
    • As a self-employed worker, the person must pay up to the maximum income for payment of insurance contributions, after taking into account the income as an employee, provided his income as an employee does not exceed the maximum income.

National Insurance Institute Benefit Recipients

Old Age Pension Recipients

  • Single old age pension recipients: will have 197 NIS (as of 2018) deducted from the pension.
  • Couples: will have 284 NIS (as of 2018), deducted for health insurance payments from the pension of the man in the following situations:
    • A man who receives an Old Age Pension with a supplement for his wife, even if she is a salaried employees
    • Each spouse receives their own old age pension.
  • Minimum health insurance contributions in the amount of 103 NIS (as of 2018) are deducted (for a single and couple) from the allowance of:
  • A married woman who receives an Old Age Pension and whose husband is a National Insurance beneficiary is exempt from paying health insurance contributions from the pension.
  • Old Age Pension recipients are exempt from paying health insurance contributions from all other sources of income, including pensions. Thus an employee receiving a old-age pension must update the employer about his/her eligibility for the benefit, so that health insurance premiums will no longer be deducted from his/her salary (and credited if they were deducted from the income) one he/she becomes eligible for the old age pension..

Those who Receive Benefits from the Ministry of Defense and the Ministry of Treasury

  • The following populations will have the minimum amount of 103 NIS (as of 2018) deducted from their benefits for health insurance payment, on condition that they don't have other sources of income:
  • One who also receives a National Insurance Institute allowance is obligated to pay health insurance contributions on the National Insurance Institute allowance only, according the rules given in the previous sections.
  • One who has additional sources of income are obligated to pay health insurance contributions based on those sources of income only.

Other Populations

  • Non-Workers who are not Students or Yeshiva Students:
    • Those who have income must pay 5.00% of their income directly to the National Insurance Institute as their insurance contribution (as of 01.01.2006).
    • Those without income must pay the minimum payment of 103 NIS (as of 2018) directly to the National Insurance Institute.
  • Kibbutz Members:
    • Must pay health insurance contributions at the same rate paid by salaried employees.
    • The kibbutz is responsible for paying the insurance contributions.
  • Career Military Personnel:
    • The IDF provides healthcare services for career military personnel, but it is mandatory to pay health insurance contributions to the National Insurance Institute.
    • The health insurance contributions for career military personnel are paid at the same rate as for salaried employees.
  • Early Pension Recipients:
    • For beneficiaries who are retired and have not yet reached retirement age, the pension provider must deduct health insurance contributions at a rate of 3.10% from the portion of the pension which is up to 60% of the average wage (5,944 NIS as of 2018), and 5.00% from the portion of the pension above 60% of the average wage up to the maximum monthly income amount liable for insurance contributions (43,370 NIS as of 2018).
  • Early Retirement-Age Beneficiaries who are Self-Employed or Salaried Workers:
    • Early retirement pensioners who work as salaried workers, who are self-employed, or both, must pay health insurance contributions on all income up to the maximum monthly income liable for insurance contributions (43,370 NIS as of 2018).
  • A reserve soldier who submitted a personal claim form to the National Insurance Institute for his/her service:
    • Health insurance payments for reserve soldiers who submitted personal claims to the National Insurance Institute for their service will be deducted from the payments they receive from the National Insurance Institute.
    • With this, the soldier is obligated to contact the collections department of his/her local National Insurance Institute branch in order to coordinate National Insurance deductions (irrelevant of the income amount or amount received for reserve duty). For more information see National Insurance Contributions for Reserve Soldiers.

Reporting and Paying Insurance Contributions

The Self-Employed, Non-Workers, Students and Yeshiva Students

  • Payment may be performed in one of the following ways:
  • Advance payment booklet:
  • Payment with an advance payment booklet can be performed in any bank including the post office bank.
  • Those who are self-employed or have passive income must pay an advance payment each month from February until January (payment on the 15th of each month for the previous month).
  • Those who do not work, students and yeshiva students must pay on a quarterly basis at the end of each quarter - February 25 for October, November and December; April 15 for January, February and March; July 15 for April, May and June; and October 15 for July, August and September.
  • Payment by credit card:
  • Payments can be made by credit card through the telephone payment center, the national call center, and the online payment site.
  • Payment with a standing order:
  • Advance payments, and previous obligations may be paid with a standing order through the bank. Standing orders may be set up by filling out the relevant account debit request form.

Employers Paying on Behalf of Salaried Employees and Pension Recipients

  • Reporting and payment are performed on Form 102 in one of the following ways:
  • Reporting only and payment at the bank.
  • Payment only - This option is intended for employers who have already submitted the report, but who have not yet paid.
  • Reporting and payment at the bank - Performed in person with Form 102.
  • Reporting and payment through the Mayetzgim automated system - For employers who have an accountant, lawyer or tax adviser representing them who has access to the system.
  • Reporting only by submitting Form 102 to a clerk at the collection department of the National Insurance branch responsible for handling the company's file, and payment via the payment website or at the bank with Form 102.

Please Note

  • Failure to pay or delayed payment of health insurance fees does not affect the rights of a policyholder and does not exempt the health plan from providing the healthcare services included in the healthcare services basket.
  • Health insurance contributions deducted from an employee's salary (both for salaried employees and the self-employed) are calculated according to gross income (the income before any deductions).
  • Health insurance contributions are paid in addition to National Insurance contributions. For more information see National Insurance Contributions.


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