Israel
The National Insurance Institute of Israel (NII) provides retirement, survivor benefits, disability, long-term care, maternity, workers’ compensation, unemployment, and family allowances. All residents must register for medical benefits with one of four health maintenance organizations that provide a ‘health basket’ of services as required by law. Benefits include hospitalization, preventive and curative care, diagnostics and tests, prescription drugs, maternity, psychiatric care, and chronic disease management. Some dental services are also covered.
Country Insight
Mandatory employee benefits in Israel
Retirement
The National Insurance Program (NIP), administered by the NII, provides retirement, survivor’s, disability, long-term care, maternity, workers’ compensation, unemployment benefits, and family allowances. Benefits are provided as a defined benefit (DB) pension funded on a pay-as-you-go basis. Retirement age for men and women ranges from 67 to 62, depending on date of birth. At least 60 months of contributions within the 10 years preceding retirement, or at least 144 months of total contributions, are required to access retirement benefits.
Life Insurance
Survivors’ benefits are provided as a defined benefit (DB) pension for a widow(er) at least 40 years of age. Benefits are payable if the deceased met certain contributory requirements at the time of death. A death grant is also provided. The Survivors’ pension for a widow(er) depends on age and children. There is also a monthly survivors’ pension for orphans.
Accident Insurance
Workers’ compensation benefits are provided through the NIP and the Health Insurance program. Temporary benefits include an Injury Allowance and a Work Disability Pension, and amounts are based on the degree of disability. Permanent disability benefits consist of a Work Disability Pension, Disability Grant, Special Allowance, and Vocational Rehabilitation Allowance. Prescribed qualifications apply. 0.5-2.5% varies by industry risk and claims experience. Sickness benefits from social insurance provide short-term disability income (80% of salary). Employers supplement with enhanced group accident and disability insurance, providing additional lump sums.
Disability Insurance
The NII provides long-term disability benefits for individuals with a degree of incapacity of at least 60% with an earning loss of at least 50%. A 90-day elimination period from onset, or the statutory sick leave, whichever is greater, applies. The benefit amount, payable as a flat rate, varies according to the degree of disability. An increment for a qualifying spouse and child may be payable.
Medical Insurance
Medical benefits are provided through the National Health Insurance. Benefits include, but are not limited to, hospitalization, preventive and curative care, diagnostics and tests, prescription drugs, maternity, and chronic disease management.
MVS provided this information about mandatory employee benefits in Israel. If you need support with your employee benefits program in the country, please contact us, and we will connect you with our local experts there.