Bitouah leumi in Israel (current January 2021).
Social security and health insurance contributions are deducted at source for employees directly by their employers. Like income tax, and in the interests of social equality, the contribution rate is also progressive.
How much does it cost the employee?
- Up to 6,331 shekels, the employee must contribute 3.5% of his gross salary.
- Above 6,331 shekels, the employee must contribute 12% of gross salary for each additional shekel.
Please note: if you have 2 jobs, the calculation of social security contributions payable by the employee will be based on the total salaries received at the 2 workplaces.
To do so, you must submit form 644 of the Bituah Leoumi (download here) to your second employer.
How much does it cost the boss?
- Up to 6,331 shekels, the employer must contribute 3.55% of the gross salary.
- Above 6,331 shekels, the employer must contribute 7.60% of gross salary for each additional shekel.
A small example to better understand Bitouah Leoumi in Israel.
For example, Raphael A. earns a gross salary of 12,000 Nis per month. He would have to pay 878 shekels in contributions, while his employer would have to pay 659 shekels in social security contributions.
In total, Raphael's salary will have brought in 1,537 shekels for Bitouah Léoumi.