Bituach Leumi

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What Is Bituach Leumi?

Bituach Leumi is Israel’s National Insurance Institute. This government body is responsible for collecting social security contributions and administering a wide range of public benefits.

In practical terms, Bituach Leumi functions similarly to a combination of Social Security and national insurance systems in other countries. Contributions are mandatory for most residents and are tied to employment status and income level.

What Bituach Leumi Covers

Bituach Leumi provides financial protection and benefits in various life situations. These benefits are designed to support residents during periods of need. Coverage can include:

  • Old-age pensions 
  • Disability benefits 
  • Unemployment benefits 
  • Child allowances 
  • Maternity benefits 
  • Work-injury compensation 

 

The scope and amount of benefits that a person can receive depend on contribution history, residency status, and personal circumstances.

Who Must Pay Bituach Leumi

Most Israeli residents are required to make Bituach Leumi contributions, including:

  • Employees (with contributions shared between employer and employee) 
  • Self-employed individuals 
  • Certain non-working residents 

 

Contribution obligations are linked to Israeli tax residency, not citizenship. Israeli residents who earn income abroad may still be required to contribute.

How Contributions Are Calculated

Bituach Leumi contributions are generally calculated as a percentage of income, subject to thresholds and contribution caps set by law.

Different rates may apply depending on:

  • Employment status (employee vs. self-employed) 
  • Type of income 
  • Income level 

 

Contributions are collected either through payroll withholding or direct payments.

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