Business
Israel — Business: Social Security
Self-employed people in Israel pay 7.70% combined National Insurance and health on the lower income band and 18% on the higher band.
VerifiedGovernment / official sourceNational Insurance Institute (Bituach Leumi) — Self-employed contribution ratesLast reviewed: 2026-10-23
Why this matters
Understanding Israel's social security system is crucial for entrepreneurs, as it affects their taxes, benefits, and overall financial planning.
Key facts
- Reduced band (income up to 60% of the average wage): 4.47% National Insurance plus 3.23% health insurance, 7.70% in total.
- Full band (above that threshold up to the ceiling): 12.83% National Insurance plus 5.17% health insurance, 18% in total.
- The BTL January 2026 example uses an average wage of NIS 13,769 and a reduced-rate basis of NIS 7,703 a month; one page gives a maximum insurable monthly income of NIS 50,695 (January 2025).
- Self-employed people below a minimum income pay on that minimum, quoted as NIS 3,134 a month; dates differ between pages, so confirm the current figure.
- People who are both salaried and self-employed pay health insurance on both income sources.
Steps
- Step 1: Determine Your Status — Determine whether you are an employee, self-employed individual, or a foreign worker to understand your social security obligations.
- Step 2: Register with the NII — Register with the National Insurance Institute to obtain a unique identification number and start paying social security contributions.
- Step 3: Understand Your Benefits — Familiarize yourself with the social security benefits you are eligible for, such as unemployment benefits, maternity benefits, and old-age pensions.