How to calculate maternity leave in Israel for a self-employed woman (Ossek Patour / Ossek Mourche)
You may be wondering how your maternity leave in Israel is calculated. Whether you are an Ossek mourche or an Ossek Patour, the calculation is not exactly the same as the calculation of maternity leave for an employee in Israel.
The questions are as follows:
- The calculation is based on which fiscal year? The current one or the previous one? Maybe both?
- Do you have the right to decide which year to choose? (For example, if you've earned more / less this year than last).
- How does the Bitouah Leoumi make its calculations?
In this article, we explain calculating the Bitouah Leoumi.ALSO READ: Calculating maternity leave for an employee in Israel.
Maternity leave in Israel: How to determine the basic months of calculation?
What determines the calculation of the final maternity allowance is the 3 "basic" months.
They are always the three months preceding the end date of labor, which itself is usually the day of birth. It may also very well stop before then, as during pre-delivery convalescence - Chmirat Herayon שמירת הריון, for example.
The calculation can be made over two different tax years only if the mother gave birth at the beginning of the year. (The birth would have taken place in February or March).
- Delivery in January
If you gave birth in January, the three months on which the calculation is based are as follows:
Months 10-11-12 of the previous year.
In this case, the calculation of your maternity leave in Israel is based on the previous year only.
- Delivery in February
If the mother gave birth in February 2019, the base months will be: 11-12.2018 and 01.2019
The calculation will be based on two tax years, two months in 2018 and one month in 2019.
- Delivery in March
If the mother gives birth in 03.2019. The calculation will be based on two tax years:
12.2018 and 01-02.2019.
One month according to fiscal year 2018.
And two months according to fiscal year 2019.
- Delivery between April and December
If you give birth from April to December, the calculation of your maternity leave in Israel will be based on only one tax year, the current one. The basic three months will always correspond to the current tax year, as explained below:
Born in April
Monthly basis 1-2-3.
Born in May
Monthly basis 2-3-4.
And so on...
Born in December
Monthly basis 9-10-11.
How is the value of a month calculated?
First of all, we need to answer this question: how many days of maternity leave can a new mother receive in Israel?
The number of days depends on the contribution period.
You must have contributed to Bitouah Leoumi for a certain period of time in order to receive maternity leave in Israel:
- Contributions over a period of at least 15 months out of the last 22 months, or 10 months out of the last 14 months prior to childbirth, will entitle you to 15 weeks' maternity leave (i.e. 105 days).
- Contributions over a period of at least 6 months out of the last 14 months prior to childbirth will entitle you to 8 weeks' maternity leave (i.e. 56 days).
How many months should your annual income be divided over?
Bitouah leoumi automatically stops the collection for 4 months, then automatically resumes it at the end of the maternity leave.
This is important because it sometimes has a direct effect on the calculation of maternity allowance, and then on the amount of maternity leave.
In fact, the number of months for dividing the annual income is not fixed, and can be 8, 9, 10, 11 or 12 months, depending on the child's month and the day of that month.
Annual income is not necessarily divided by 8 months. In fact, division by 8 will only occur when the birth takes place between January 1 and September 15. A birth after this date will necessarily result in a different calculation.
Let's take the example of a mother who gave birth on September 1. The Bitouah Leoumi will divide the annual income by 8. This gives us the value of one month.
But in the case of a mother giving birth on 25.10.18, she will not pay insurance premiums in months 11-12 in 2018 and two months in 2019. This means that Bitouah Leoumi contributions were paid in 2018 over a 10-month period. Thus, the annual income will be divided by 10 and not by 8.
Maternity leave in Israel: The reform that changes everything
The system explained above is appreciable if it doesn't take into account a human factor.
Indeed, many new mothers have complained to the Bitouah Leoumi that the calculation of maternity leave in Israel for self-employed workers is not logical.
How can we base ourselves on the few months preceding childbirth, or on a future annual average, when in reality a pregnant woman or a woman who has just given birth cannot exert herself as much as in normal times?
As is often the case, revenues are generally lower than in normal periods.
Visit Bitouah Leoumi has therefore decided to modify the months on which the calculation is based.
The new mother can choose to receive her maternity leave in Israel, depending on the calculation system she prefers.
What does this new calculation involve?
The mother may receive a maternity allowance based on the higher of the following two calculations:
According to the income of the quarter preceding the date of determination (see calculation above, the calculation will be based on the assessment of the year of birth, if the mother gave birth from April. Otherwise the previous year, if the birth took place in January. Or a combination of two years' tax contributions, if the child is born in February or March).
Based on revenues for one quarter of the previous year. And that's what's new.
Maternity leave in Israel can be calculated entirely on the basis of the previous year.
The new mother will choose the highest result.
A few examples in figures
Example 1 Mrs Cohen gave birth on September 3, 2018. She opened her Ossek Mourché 2 years ago and has been contributing since then.
The gross income between the months of January to August 2018 amounts to 80,000 Nis.
Mrs Cohen will therefore receive Nis 35,000 for maternity leave in Israel, calculated as follows:
80,000 / 8 = 10,000 (monthly value).
This figure is then divided by 30 to obtain the daily value 333.33, which is multiplied by 105 days to give the amount of 35,000 Nis.
Example 2 Mrs Levy gave birth on January 2, 2019. She opened her Ossek Patour 9 months ago and has been contributing since then.
The gross income between the months of April to December 2018 amounts to 25,000 Nis.
Mrs Levy will therefore receive 5,186 Nis for maternity leave in Israel, calculated as follows: 25,000 / 9 = 2,778, then this figure is divided by 30 to obtain the daily value of 92.6, multiplied by 56 days. This gives an amount of 5,186 Nis.
How do I apply for maternity leave in Israel?
Unlike an employee, a self-employed person in Israel (Ossek Mourche or Ossek Patour) does not need to make a special request to the Bitouah Leoumi.
In fact, the hospital is responsible for informing them.
In this way, the mother will receive the full amount of her maternity leave in Israel directly into her account, without having to do anything.
Generally speaking, it takes between 6 and 10 days after the birth to receive the transfer to your bank account.
Your questions - our advice
- Is it possible that Bitouah Leoumi will have to top up your maternity leave once the fiscal year is over?
- Is it possible that you have to repay an overpayment from the Bitouah Léoumi?
- Is it possible that you have to repay an overpayment from the Bitouah Léoumi?
- If you earned more, you didn't contribute enough during the year. Will this affect your maternity leave?
- Must you continue to pay Bitouah Leoumi during the maternity leave period?
- How is the calculation made if you are also employed and self-employed (Ossek Mourché or Ossek Patour)?
- Does an Ossek Mourche or Ossek Patour still have to contribute to Bitouah Leoumi?
- Can an Ossek Patour or Ossek Mourche who does not contribute to Bitouah Leoumi still receive maternity leave?