National Insurance (Bituach Leumi)
Maximizing Rights, Proper Planning, and Savings on Payments
National Insurance is not just a body you pay — it is a complex system that directly affects your rights in the future. Mistakes in reporting, failure to regularize status, or improper planning can lead to high debts, loss of rights, and even damage to benefits. On the other hand, proper planning and utilization of rights can save tens of thousands of shekels and ensure full coverage in critical situations. We provide professional advice and accompaniment that understands both the insurance aspect and the tax aspect.
The Two Sides of National Insurance (Bituach Leumi)
National Insurance has two faces — the side that obligates you to pay insurance contributions (National Insurance and health insurance), and the side that protects you in times of need. Proper handling of both is what distinguishes a person who leverages the system to their advantage from one who pays too much and receives less than they are owed.
With professional accompaniment:
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Accurate insurance contribution calculation, minimized to the legal requirement
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Regularized status with the National Insurance Institute
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Full utilization of all rights and benefits
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Professional representation in complex claims
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Advance planning that prevents future problems
Please Note: The National Insurance Institute calculates insurance contributions based on the income reported to it — and sometimes does so incorrectly. Self-employed individuals, employees with additional income, and company owners may discover years later that they have a large retroactive debt. Ongoing professional review can prevent painful surprises.
National Insurance for the Self-Employed
Self-employed individuals are at particular risk with National Insurance, as calculation of their contributions is more complex and depends on income reported to the income tax authority.
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Calculation of contributions for the self-employed: National Insurance contributions for a self-employed individual are calculated as a percentage of taxable income — not of turnover. Incorrect deductions or improper calculation of taxable income can result in overpayment or a retroactive debt.
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Insurance coverage during illness and maternity: A self-employed person who is not properly registered with National Insurance may discover they are not entitled to sick pay, maternity pay, or work disability pension — critical coverage that can be worth tens of thousands of shekels.
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Coordination between income tax and National Insurance: The Tax Authority assessment directly affects National Insurance calculation. Changes in the annual return — even years back — can trigger an unexpected update of the National Insurance charge.
Frequently Asked Questions - National Insurance (Bituach Leumi)
Is a self-employed person required to pay National Insurance even in a year when they earned nothing?
Yes. A registered self-employed individual is required to pay minimum National Insurance contributions even in years when income is very low or nonexistent. There is a minimum annual amount that must be paid. Professional advice can help plan correctly even during difficult years.
What happens to my National Insurance when I am abroad?
An Israeli resident staying abroad is generally required to continue paying National Insurance contributions, unless a formal notification has been submitted and certain conditions are met. Failure to regularize the situation can result in loss of rights upon returning to Israel — such as old-age pension, health fund membership, and more.
How is a maternity benefit claim submitted?
A maternity benefit claim is submitted to the National Insurance Institute and must be filed within 12 months of the date of birth. The benefit amount is calculated based on income in the months preceding the birth. It is important to ensure that the data is correctly reported in order to receive the maximum amount.
I received a notice of a National Insurance debt — what should I do?
Do not ignore it and do not pay before checking. National Insurance debts sometimes arise from an incorrect calculation, an income tax assessment update, or failure to update personal details. Before making any payment, check the data on the basis of which the debt was calculated — it is sometimes possible to appeal or significantly reduce it.
I was injured at work — what are the first steps?
A claim must be submitted to the National Insurance Institute as soon as possible after the injury, with medical documentation. Delay in filing may affect eligibility. National Insurance will pay injury benefits during the hospitalization and recovery period, and in cases of permanent disability — a work disability pension may be received.
Is it possible to receive a refund for National Insurance contributions that were overpaid?
Yes. If National Insurance contributions were paid based on income that turned out to be lower — following submission of the annual income tax return — a refund can be requested. The process requires a review of the final assessment against the National Insurance records and a formal application.
Who Is the Service Suitable For?
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Self-employed individuals
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Israelis staying abroad
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New immigrants and returning residents
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Employees with additional income
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Those who received a debt notice from National Insurance
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Those filing or planning to file a National Insurance claim
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Those planning to go abroad.