Glossary

A product warranty or guarantee. Israeli consumer law provides minimum warranty periods for electronics and appliances.

A service fee charged by banks for transactions such as transfers, currency exchange, or account maintenance.

Municipal property tax paid by occupants of residential and commercial properties. Olim get a discount.

Credit extended by a bank or card company, including credit cards and overdraft facilities.

A formal application or request submitted to a government office, employer, or institution. Often requires supporting documents.

Life insurance policy that pays a lump sum to beneficiaries in the event of the insured person's death.

Insurance that pays a lump sum to your beneficiaries upon death. Often required by mortgage lenders and available through employer pension plans.

Legally required car insurance covering bodily injury to all parties in an accident. Every vehicle in Israel must have this.

Israel's social security system covering unemployment, disability, maternity, old-age allowance, and more.

Full car insurance covering damage to your own vehicle, theft, fire, and natural disasters in addition to third-party liability.

Supplemental health insurance offered by Kupat Cholim for services beyond the basic basket.

An insurance-based pension product sold by insurance companies, common before 2008 pension reforms.

Structural insurance covering the physical building walls, roof, plumbing, and electrical systems. Required by most mortgages in Israel.

Disability insurance replacing income if illness or injury prevents you from working.

Disability insurance that replaces a portion of your income if illness or injury prevents you from working. Usually 75% of salary.

Long-term care (nursing) insurance that covers costs if you become unable to care for yourself.

Long-term care insurance that covers the cost of a caregiver if you can no longer perform daily activities independently. Critical to enroll before age 65.

Insurance covering personal belongings inside your home: furniture, electronics, clothing, and valuables. Separate from building insurance.

Your gross salary before any taxes or deductions are taken out.

A dedicated savings account that earns interest, separate from your current (checking) account.

A current (checking) account used for daily transactions, salary deposits, and bill payments.

A tax invoice issued by freelancers and businesses. An Osek Murshe must issue a Cheshbonit Mas (tax invoice) including VAT.

A legal contract, e.g. a rental agreement (chozeh schirut) or purchase contract (chozeh mecher).

A formal employment contract specifying salary, benefits, working hours, notice period, and other terms. Required by Israeli labor law.

A distribution of company profits to shareholders. Taxed at 25-30% in Israel depending on ownership stake.

Annual recreation pay (convalescence pay) that employers must provide, typically paid once a year.

A Bituach Leumi subsistence allowance for olim who are not yet working.

Maternity (and paternity) pay from Bituach Leumi replacing income during parental leave.

Annual fees charged by pension funds, provident funds, and savings plans to manage your money.

The annual tax return filed with Mas Hachnasa (Israel Tax Authority).

A security deposit or guarantee, commonly required by landlords or lenders to cover potential losses.

A government savings account (Chalon Yelad) opened for every Israeli-born child, accessible at age 18.

A job transfer to a different department, location, or role within the same organization.

A deposit of money into a bank account, savings plan, or investment fund.

A personal or business loan from a bank or other lender, repaid in monthly installments with interest.

A paper cheque drawn on a bank account. Still widely used in Israel for rent payments and business.

A price reduction or discount. Olim often receive hanachot (discounts) on Arnona, Mas Rechisha, and other government fees.

A money-back refund. Israeli consumer protection law allows returns within 14 days for most purchases.

A tax refund from the Israel Tax Authority when you have overpaid during the year through withholding.

The deductible or excess you pay out of pocket before insurance coverage kicks in. Higher deductibles mean lower premiums.

An official summons or appointment notice from a government office, court, or Bituach Leumi. Always respond within the stated deadline.

Mandatory health tax deducted from your payslip that funds your Kupat Cholim membership.

A municipal building permit required before any construction, extension, or significant renovation.

Employee-initiated resignation. Requires giving prior notice (Hodaa Mukdemet) as specified in your contract or by law.

The advance notice period required before leaving or terminating employment. Duration depends on tenure and contract terms.

An automatic recurring payment instruction, similar to a direct debit or standing order.

A debt security where you lend money to a government or company in exchange for regular interest payments and principal at maturity.

An official approval or certificate. Examples: Ishur Misrad HaPnim (interior ministry approval), Ishur Masa (tax clearance certificate).

Short-term bank overdraft (going into the red). Israeli banks charge high interest on overdrawn balances.

A receipt or proof of purchase. Keep kabbalot for warranty claims, tax deductions (if self-employed), and expense tracking.

An independent contractor who provides services without being a salaried employee. Must register as Osek Patur or Osek Murshe.

An ATM machine. Israeli banks charge fees for using other banks' ATMs. Look for your own bank's machines to avoid extra charges.

A tax-advantaged savings fund unique to Israel. Withdrawable tax-free after 6 years for any purpose.

A mutual fund managed by a professional fund manager who invests pooled money across stocks, bonds, and other assets.

The standard Israeli pension fund providing retirement income, disability insurance, and survivor benefits.

The scope of protection your insurance policy provides. Defines which events, damages, or losses are included.

A monthly child benefit paid by Bituach Leumi for every child in Israel regardless of income.

The state old-age pension paid by Bituach Leumi from retirement age, based on contributions record.

Terms used in contracts to distinguish between general clauses (tnai klali) and specific clauses (tnai prati) that override general ones.

Free entry or admission. Seen on signs at parks, museums (on certain days), and public events.

The payment register or checkout counter. Also used to refer to the cashier themselves.

One of four health maintenance organizations (HMOs) providing universal healthcare in Israel.

A long-term savings/investment fund with tax benefits, used for retirement or other purposes.

A flexible investment vehicle with favorable capital gains tax treatment (25% instead of 30%).

Value Added Tax at 18%, included in most prices. Self-employed must charge and remit it.

The Consumer Price Index. Many Israeli mortgages and contracts are CPI-linked (tzamud laMadad).

A market index tracking the performance of a group of securities. Key Israeli indices include TA-125 and TA-35.

Israeli income tax deducted from your salary according to progressive tax brackets.

Israeli progressive income tax on all earnings. Rates range from 10% to 50% across seven brackets.

A progressive tax paid when purchasing real estate in Israel. Olim receive significant discounts.

Capital gains tax on the sale of real estate, calculated on the profit from the sale.

A mortgage loan for purchasing real estate. Israeli mortgages combine multiple tracks with different interest types.

The landlord or property owner who rents out a property and collects monthly rent.

The investment strategy within your pension or savings fund - e.g. equity-heavy, balanced, or bonds-only.

Foreign currency. Banks offer currency exchange; rates and fees vary - compare before converting.

A share of stock representing ownership in a company. Traded on the Tel Aviv Stock Exchange (TASE) or foreign exchanges.

A recurring subscription for services like gym memberships, streaming, newspapers, or public transport passes.

A part-time position with fewer than 42 weekly hours. Benefits and leave are calculated proportionally.

A full-time position, typically defined as 42 hours per week in Israel. Entitled to full benefits.

Withdrawing cash from an ATM or funds from an account.

A delivery or shipment. Common in online shopping and supermarket delivery services across Israel.

Your 9-digit Israeli ID number, assigned at immigration. Used for all official, banking, tax, and medical interactions.

The ministry responsible for olim benefits including Sal Klita payments, Hebrew courses (Ulpan), and integration support.

The government ministry where you register for your Teudat Zehut (ID card), handle civil status changes, and manage residency matters.

A promotional offer or sale. Israeli supermarkets run frequent mivtzaim - common format is "1+1" (buy one get one) or percentage off.

The person designated to receive insurance proceeds. Critical to update after major life events like marriage or making Aliyah.

Tax credit points that reduce your income tax. Each point is worth a fixed NIS amount per month.

Your net (take-home) salary after all taxes and deductions.

Withholding tax deducted at the source of payment, such as by your employer or bank.

A registered self-employed person or business that must charge and remit VAT on all sales.

A self-employed individual below the VAT threshold (~₪120,000/year) who is exempt from charging VAT.

A micro-business category with simplified VAT reporting requirements introduced to reduce bureaucracy.

Exempt from Value Added Tax (18%). Applies to certain goods, services, and to Osek Patur businesses below the VAT threshold.

A fixed-term bank deposit that earns interest at a set rate - similar to a CD or term deposit abroad.

A short- or medium-term fixed deposit held at a bank, earning a guaranteed interest rate.

The severance component on your payslip - your employer contributes a portion each month to a fund.

Legally mandated severance pay equal to one month salary per year of employment.

A one-time development levy charged by local authorities for infrastructure works near the property.

Employer-initiated termination. Triggers severance pay (Pitsuyim) of one month salary per year of employment under Israeli law.

A buy order placed on a brokerage platform to purchase a security at a specified or market price.

A sell order placed on a brokerage platform to sell a security you own at a specified or market price.

The insurance contract document specifying coverage terms, exclusions, premiums, and claim procedures.

The regular payment you make to maintain your insurance coverage, usually monthly or annually.

The Bank of Israel prime interest rate. Many mortgage tracks and loans are priced as Prime +/- a spread.

The Israel Tax Authority (equivalent to the IRS or HMRC). Handles income tax, VAT, property taxes, and tax refunds.

The official government authority that registers land and property ownership - also known as Tabu.

Interest rate applied to savings deposits, loans, or overdrafts. Can be fixed or variable.

Official registration for services or records. Examples: Rishum l'Kupat Cholim (health fund registration), Rishum l'Mas Hachnasa (tax registration).

The legally mandated minimum hourly and monthly wage in Israel, updated periodically by the government.

A financial package given to new olim over 6-12 months to assist with settling in Israel.

The currency exchange rate between the Israeli shekel (NIS) and foreign currencies like USD, EUR, or GBP.

Your fixed monthly base salary before bonuses, overtime, or allowances are added.

Monthly rent payment. Israeli rental contracts are typically for 12 months with annual increases.

Overtime hours beyond the standard workday. Israeli law requires 125% pay for the first 2 overtime hours and 150% thereafter.

The tenant in a rental agreement. Israeli law provides specific protections and obligations for tenants.

Renovation or refurbishment of a property. Costs, permits, and tenant rights vary by scope of work.

Investment risk - the possibility of losing money. Higher-risk investments generally offer higher potential returns.

The Israel Land Registry (Tabu) where property ownership is officially recorded.

Contributions made to a provident fund or pension - split between employee and employer shares.

Payment installments. A uniquely Israeli habit - almost any purchase can be split into interest-free monthly tashlumim on your credit card.

A job description or position listing. Important for understanding your role, responsibilities, and employment terms.

Your official proof of immigration status. Required to access olim benefits, tax credits, and discounts on Arnona and Mas Rechisha.

An exchange-traded fund (ETF) that tracks an index or basket of securities. Popular for passive investing on the TASE.

The Israeli national identity card issued by Misrad HaPnim. Required for opening bank accounts, signing contracts, and most official processes.

A tax coordination form needed when earning income from multiple employers to avoid overpaying tax.

Your investment portfolio - the total collection of stocks, bonds, funds, and other assets you hold.

A probation period (typically 3-6 months) during which either side can end employment with shorter notice.

Your monthly payslip showing gross pay, deductions, employer contributions, and net pay.

Any official form. Common examples: Tofes 101 (employer tax form), Tofes 106 (annual salary statement), Tofes 1301 (tax return).

An additional payment awarded for years of service at the same employer, common in unionised sectors.

The investment return generated by a pension fund, savings plan, or portfolio over a given period.

The return or yield on an investment, expressed as a percentage. Includes capital gains and dividend/interest income.

The total accumulated savings balance in your pension or savings fund at any point in time.

A formal request to your insurance company for payment after a covered event. Must typically be filed within a specific timeframe.

The building management committee that collects monthly fees for maintenance, cleaning, and shared expenses.

Annual paid leave entitlement. Israeli law sets a minimum that increases with years of service.

Paid sick leave that accrues monthly. Employers pay partial pay for the first two days, then full pay.