Bituach Leumi (ביטוח לאומי) — Israel’s National Insurance Institute (NII) — is the backbone of Israel’s social safety net. Every resident of Israel, including new Olim, is required to register and pay Bituach Leumi contributions. In return, it provides access to a wide range of benefits: maternity allowances, child allowances, unemployment insurance, disability benefits, and old-age pensions. Understanding how Bituach Leumi works — who pays, how much, and what you’re entitled to — is one of the most important pieces of financial knowledge for anyone making aliyah.
What Is Bituach Leumi?
The National Insurance Institute of Israel (Hamossad L’Bituach Leumi) was established in 1954 and is the Israeli equivalent of Social Security (US), National Insurance (UK), or the CNSS (France). It is a mandatory social insurance system funded through payroll contributions from employees, employers, and the self-employed. Unlike private insurance, participation is compulsory for all residents — citizens, permanent residents, and new Olim from their first day in Israel.
Bituach Leumi is also responsible for collecting the national health insurance tax (Mas Bituach Briut) on behalf of the Kupot Cholim (HMOs). So when you look at your Israeli payslip, you’ll see two deductions under the “Bituach Leumi” heading: the NII contribution itself, and the health tax.
Who Must Register with Bituach Leumi?
All Israeli residents aged 18 and older must register with Bituach Leumi, including:
- Salaried employees (registration handled by employer)
- Self-employed individuals (must register independently)
- New Olim (must register within 90 days of aliyah if not employed)
- Non-working spouses of contributors
- Students and retirees with income
As an Oleh, you should register with your local Bituach Leumi branch within 90 days of arrival. If you are immediately employed, your employer registers you automatically through the payroll system. Registering promptly matters because delays can create gaps in benefit eligibility — particularly for maternity allowances and disability insurance, which have qualifying periods.
Bituach Leumi Contribution Rates
Bituach Leumi contributions are calculated as a percentage of gross income and are split between employee and employer. The rates are updated periodically; the current structure (as of 2024-2025) is as follows:
| Income Level | Employee Rate (NII) | Health Tax (Employee) | Employer Rate (NII) |
|---|---|---|---|
| Up to 60% of average wage (~NIS 6,900/month) | 0.4% | 3.1% | 3.45% |
| Above 60% of average wage | 7% | 5% | 7.6% |
The income ceiling for Bituach Leumi contributions is approximately NIS 45,075 per month (5 times the average wage). Income above this ceiling is exempt from NII contributions. The combined employee NII + health tax rate means most middle-income earners pay approximately 12% on the portion of income above the lower threshold, plus a small amount on income below it.
Self-employed individuals pay both the employee and employer shares themselves, on their declared net income (taxable profit from the business). Self-employed Bituach Leumi contributions are filed and paid quarterly through the Bituach Leumi self-assessment system.
Benefits Available Through Bituach Leumi
Child Allowances (Kimaat Yeladim)
Israel pays a monthly child allowance for every child from birth until age 18, regardless of family income. The allowance amount is the same for all children and is paid automatically without application once a birth is registered. As of 2024, the monthly payment is approximately NIS 168 per child per month. While modest, it is universal and requires no means-testing.
Maternity Allowance (Dmei Leidah)
Employed mothers (and in some circumstances, fathers) who have contributed to Bituach Leumi for a qualifying period receive a maternity allowance for up to 15 weeks (26 weeks for multiple births). The allowance equals 100% of average daily wage during the qualifying period. To be eligible, you must have been employed and contributing to NII for at least 10 of the 14 months before the birth, or 15 of the 22 months. New Olim should register and begin contributing as soon as possible to start accruing this eligibility period.
Unemployment Insurance (Dmei Avtalah)
Employees who have contributed to Bituach Leumi for at least 12 months in the prior 18 months are entitled to unemployment benefits if they are involuntarily unemployed or if their employer went bankrupt. The benefit is calculated as a percentage of average salary and paid for up to 138 days for those under 45 (longer for older workers). Benefits are subject to waiting periods and to active job-seeking requirements through the Employment Service (Lishkat HaAvodah). New Olim must establish the 12-month contribution record before becoming eligible.
Old Age Pension (Kitzba Zikna)
The old-age pension is paid from retirement age (67 for men, 65 for women, with gradual increases to 65 for women underway) to anyone who has accumulated the required contribution periods. For new Olim who arrive with years of pension history in their home country, Israel has bilateral social security agreements with many countries (including the US, Canada, UK, France, Germany, and others) that allow foreign contribution periods to count toward Israeli pension eligibility. The pension amount is modest — approximately NIS 1,700–2,500 per month for those with minimum qualification — but serves as a floor for all residents.
Disability Allowances (Kitzba Nechar)
Bituach Leumi provides general disability allowances for those with medically certified disabilities that reduce work capacity. Eligibility and amounts depend on the degree of disability (assessed as a percentage), income level, and contribution history. There is also a separate work accident branch that covers injuries sustained on the job.
Bankruptcy and Wage Guarantee
If your employer goes bankrupt and cannot pay owed salaries or severance, Bituach Leumi’s wage guarantee fund pays these amounts on the employer’s behalf, up to statutory limits. This is an important protection for employees whose employers enter insolvency.
Bituach Leumi for New Olim: Special Considerations
Registration Process
New Olim who are not immediately employed must visit their local Bituach Leumi branch (sniph) in person to register as self-registered residents. Bring your Teudat Zehut (Israeli ID), Teudat Oleh, and passport. If you are employed, your employer handles registration through the payroll system — verify this happened by checking your first payslip for the NII deduction line.
The Qualifying Period Challenge
Many Bituach Leumi benefits have qualifying contribution periods — typically 10–15 months of contributions before you become eligible. This means new Olim typically have a “gap period” during which they are registered and paying contributions but not yet eligible for benefits like maternity leave pay or unemployment insurance. Plan accordingly: if you are planning to start a family in Israel, the sooner you begin contributing, the sooner you build eligibility.
Bituach Leumi and the 10-Year Tax Exemption
Israel’s 10-year foreign income tax exemption for new Olim does NOT apply to Bituach Leumi contributions. NII contributions are assessed on all income earned in Israel from day one of aliyah. However, foreign-source income (passive income from abroad) that is exempt from Israeli income tax under the Oleh exemption is also generally exempt from Bituach Leumi contributions during the exemption period — check with a tax advisor for your specific situation.
For more on the full range of Oleh financial benefits and government support, see our complete Oleh Chadash benefits guide. For understanding your payslip and salary structure, see our guide to salaries in Israel.
How to Contact and Use Bituach Leumi
Bituach Leumi has branches (snifim) in every major Israeli city. You can also access many services online through the NII’s official website (btl.gov.il), including checking your contribution history, filing self-employment declarations, and applying for benefits. The NII call center (phone 08-6509999) has Hebrew-language service; for English assistance, the website has English pages covering main benefits, or you can request an English-speaking clerk at your local branch.
Frequently Asked Questions
When do I need to register with Bituach Leumi after making aliyah?
You should register with Bituach Leumi within 90 days of making aliyah if you are not immediately employed. If you begin working for an employer right away, they register you automatically through payroll. Registering promptly is important for starting the clock on qualifying periods for benefits like maternity allowance and unemployment insurance.
How much do I pay in Bituach Leumi as an employee?
As an employee, you pay a reduced NII rate of 0.4% on the first ~NIS 6,900 of monthly income, and 7% on the portion above that, up to the NII ceiling of ~NIS 45,075/month. You also pay health tax of 3.1% on lower-band income and 5% on higher-band income. Your employer pays their own separate NII share on top of your salary — this does not come out of your gross pay.
Can I get maternity leave pay from Bituach Leumi as a new Olah?
Yes, but you must meet the qualifying contribution period first. You need to have been employed and contributing to Bituach Leumi for at least 10 of the 14 months preceding the birth (or 15 of the 22 months for a longer qualifying window). If you arrive and begin working immediately, you can typically qualify within 10–14 months. Planning ahead of a family expansion is strongly recommended.
Does the 10-year Oleh tax exemption affect Bituach Leumi contributions?
No. The 10-year income tax exemption for new Olim applies to Israeli income tax, not to Bituach Leumi contributions. You pay NII contributions on your Israeli employment income from your first day of work. However, foreign passive income that is exempt from Israeli income tax during the exemption period is also generally exempt from Bituach Leumi contributions — consult a tax advisor for your specific income mix.
What happens to my foreign pension or Social Security in relation to Bituach Leumi?
Israel has bilateral social security agreements with many countries including the US, UK, Canada, France, and Germany. These agreements allow foreign contribution years to count toward Israeli old-age pension eligibility, and vice versa — preventing you from having to meet full qualifying periods in both countries. Each agreement has its own terms, so verify with Bituach Leumi or your home country’s social security office how your specific years are credited.
How do self-employed Olim handle Bituach Leumi?
Self-employed individuals in Israel must register independently with Bituach Leumi (and with the Tax Authority as osek morsheh or osek patur). They pay NII contributions on their net business income, filing quarterly advance payments and an annual reconciliation. Self-employed rates are higher than the employee rate because you pay both sides of the contribution. A licensed Israeli accountant (roh hesbon) can help set up the correct advance payment schedule to avoid penalties.
Get Help Navigating Bituach Leumi
Bituach Leumi is one of the most important institutions you’ll interact with as a new Oleh — and one of the most confusing for newcomers unfamiliar with Israeli bureaucracy. From registration timing to understanding your contribution history to claiming benefits, the process has real financial implications. Olim Paveway helps new immigrants navigate Bituach Leumi and the full range of Israeli administrative processes, from first registration through long-term benefit planning. Contact us to learn how we can support your absorption journey.