Two Different Systems: Employed vs Self-Employed
How you pay ביטוח לאומי (Bituach Leumi) contributions depends entirely on your employment status. Employees have contributions deducted automatically via their payslip. Self-employed individuals receive quarterly invoices and must pay proactively.
If You're an Employee
Your employer handles Bituach Leumi contributions on your behalf. The contributions are split between you and your employer:
- Employee share: approximately 3.5-7% of gross salary (lower rate on income below ~7,000 NIS/month, higher rate above)
- Employer share: approximately 3.5-7.5% of your gross salary (paid on top of your salary — you don't see this deducted, but it's a real cost your employer bears)
Both your share and the employer's share appear on your detailed payslip. The deduction is labelled "ביטוח לאומי" (Bituach Leumi) and is separate from the health tax (Hetel Briut), though both are remitted to the National Insurance Institute together.
If You're Self-Employed
Self-employed individuals (osek patur, osek murshe, or osek zair) pay Bituach Leumi contributions on their business income. Unlike employees, there is no employer to split the cost — you pay both shares yourself, which means the effective rate is higher.
Bituach Leumi sends quarterly invoices (advance payments called "maakreh") based on your previous year's income. At year-end, you file an annual report and either pay any shortfall or receive a refund.
Self-employed rates in 2025:
- On income up to approximately 7,000 NIS/month: about 6.72% total
- On income above that threshold: about 12% total
These rates include both the Bituach Leumi insurance portion and the health tax (Hetel Briut) — they arrive as a combined invoice.
What You Get Back: The State Pension
Every year of contributions builds your entitlement toward the state old-age pension (Kitzvat Zikna). The full state pension requires 144 months (12 years) of contributions. With fewer months, you receive a partial pension proportional to your contribution record.
As of 2025, the full old-age pension is approximately 1,600-2,200 NIS per month (depending on age and marital status) — not a livable income on its own. Most Israelis supplement it with their mandatory private pension (keren pensia), where contributions are much larger and returns are investment-linked.
Don't Fall Behind on Payments
Bituach Leumi tracks contribution history carefully. Falling behind on payments has several consequences:
- Gaps in your contribution record reduce your future pension entitlement
- You lose eligibility for unemployment and maternity benefits during gap periods
- Bituach Leumi charges interest and penalties on late payments
- In extreme cases, they can attach your bank account
If you're going through a difficult financial period, contact Bituach Leumi proactively. They have hardship deferral arrangements and won't act aggressively if you're communicating with them.
Checking Your Contribution Record
You can view your full contribution history and estimated pension entitlement through the Bituach Leumi online portal (bituach-leumi.il). Log in with your Teudat Zehut number and a phone verification. The portal shows your annual statements, any gaps, and your projected old-age pension amount.