An employee on maternity leave is entitled to have her employer's provident fund contributions continue throughout the period in which she is entitled to a maternity allowance (maternity pay).
- Those entitled to 15 weeks of maternity pay are entitled to have provident fund contributions paid for 15 weeks (even if she is entitled to 26 weeks of maternity leave).
- Those entitled to 8 weeks of maternity pay are only entitled to have provident fund contributions paid for those 8 weeks, and not for the rest of maternity leave during which they do not receive a maternity allowance.
- The entitled is applicable to all types of provident funds, including: general provident funds, pension funds, vacation pay, sick pay, and advanced study funds (קרן השתלמות).
Who is Eligible?
- Women on maternity leave who meet the following 3 conditions:
- Her employer contributes provident fund payments for them (including general provident funds, pension funds, managers' insurance, [[he:קרן השתלמות|advanced study funds etc.)
- She is entitled to receive a maternity allowance.
- She worked for the same employer for at least 6 months prior to becoming pregnant.
- A man sharing maternity leave with his wife is entitled to the same rights regarding provident fund contributions on condition that they meet all of the conditions detailed above.
- An Adoptive Parent who is on maternity leave or a foster parent on maternity leave is entitled to continue the provident fund contributions, if he/she meets the above conditions, and if a working relationship existed between him/her and his/her employer for at least 15 months before bringing the child home.
How to Claim It?
- The employer must deduct the employee's contributions for the first two months of maternity leave from her last wages prior to going on maternity leave and submit both the employee's and the employer's contributions to the provident fund every month.
- After the first two months of maternity leave, the employer will continue submitting both the employee's and the employer's contributions to the provident fund every month up to a maximum of 15 weeks.
- For daily and hourly employees the contributions will be calculated based on the average of their salary for the 6 months before they were eligible for maternity leave.
- For salaried employees, the contributions will be calculated according to their regular salary from before they began maternity leave.
- After 15 weeks the employer may (but is not obligated to) continue contributing to the employee's provident fund.
- An employer who stops making contributions should notify the provident fund.
- For more information see An employee must report stopping to make contributions to an employee's pension or provident funds.
- Following maternity leave, the employee will be responsible for reimbursing the employer for all of the employee contributions paid on her behalf (this amount will be deducted from the employee's wages after returning from maternity leave).
- The obligation of the employer to make provident fund contributions for an employee on maternity leave is only in effect for the period of maternity leave during which the employee is entitled to a maternity allowance (maternity pay).
- An employee who has taken extended maternity leave (beyond the period in which he/she is entitled to maternity pay), can continue and deposit money to his/her pension insurance fund (for the time period in which the employer does not pay the difference), to ensure the continuity of rights. It is advised to consult a pension adviser or representatives of the pension fund/provident fund/insurance company in advance.
- Click here for a comprehensive listing of organizations that provide assistance for issues related to employment and workers' rights, specifically those listed under "ארגוני סיוע לנשים".
- For a list of government agencies responsible for employment issues including agencies that are specifically responsible for the employment of women.
Laws and Regulations
- The Employment of Women Law - Section 7a
- Employment of Women Regulations (Times and Rules for Provident Fund Payments), 5768-2008 (on the Nevo website)
- The Supervision of Financial Services Law (Provident Funds), 5765-2005 - Sections 1, 13 (on the Nevo website)
- English translation and maintenance by The Shira Pransky Project.