National Insurance Institute (NII) – Who Must Pay and How

Required to Pay

• Every resident of Israel aged 18 and over is obliged under law to be insured by National Insurance and to pay the National Insurance contributions, except for a housewife (a married woman who is not employed outside the household) and for a person who first became an Israeli resident over the age determined by law (the age increases gradually from 60 to 62).
   
• A person whose life is centered in Israel. Among the criteria for determining residence in this context: permanent place of residence, place at which the family is staying, place of the children`s education, main place of work, place of learning.
   
• Every resident of Israel aged 18 and over is also obliged to be covered by Health Insurance and to pay the health insurance contributions to the National Insurance Institute together with the national insurance contributions.
   
• A housewife is exempt from payment of health insurance, with the exception of a housewife who is an old-age pension recipient or whose spouse receives a supplement to his old-age pension. Every insured person must be registered in one of the health funds ("Kupat Holim") and is entitled to the health services defined by law.
   
• A person who does not work and has no income will pay the minimum insurance contribution of NIS 147 per month (as of 01.01.2009).
   
• An insured person is obligated to continue to pay insurance contributions for any period he/she is temporarily absent from Israel.

How to Pay

Premium rates of national insurance and health insurance are calculated according to the insured’s earned and unearned income, and according to his work status (employee, self-employed, unemployed, student, etc.). Payments will not be less than the minimum specified by law and will not be more than the maximum income ceiling for insurance contributions.

Employers – on behalf of their employees and pensioners - report and pay on form 102 by means of: the NII payment site; a bank; the “representatives” computer system; or a hand-written report

Self-employed, non-workers students and yeshiva students pay by means of: a pay-book; credit card; standing order at the bank; or debt settlement by checks

If you need more information or clarification on any subject concerning the NII, please feel completely comfortable to contact me.
 

Sincerely,
 

Tzvi Szajnbrum, Attorney at Law