National Insurance Clarifies Rules for Disability Pensioners Working
Israel's National Insurance Institute (Bituah Leumi) has issued a reminder to recipients of general disability pensions, emphasizing that receiving a pension does not preclude them from working. Individuals can continue to receive their pension while employed, with the amount adjusted based on their income and determined level of incapacity. The Institute assures that the total income from work and the pension will always exceed the pension amount alone.
New applicants who are currently working may be eligible for a disability pension if their gross monthly income is below 8,261 shekels, starting January 1, 2026, provided they meet other eligibility criteria. Those already receiving a disability pension can start working without their incapacity level changing. If employment ceases or income drops below the threshold, they can resume receiving their full pension without a new medical review, as long as their incapacity status remains valid.
The calculation of income affecting the pension includes various employer payments like vacation pay, clothing allowances, and bonuses. The specific pension amount and how work income impacts it depend on the determined incapacity level, which can be 60%, 65%, 74%, or 100%. Recipients continue to receive their full monthly pension and associated benefits. If a pension was stopped solely due to high earnings, associated benefits may continue for 36 months.
As of January 1, 2026, monthly disability pensions range from 2,718 shekels for a 60% incapacity level to 4,711 shekels for a 100% or 75% level. Additional allowances for spouses and children are also available, with amounts varying by incapacity level and subject to income ceilings for the spouse. For instance, the supplement for a spouse is 1,518 shekels for a 100% or 75% incapacity level, provided the spouse's income does not exceed 7,848 shekels gross monthly and they do not receive another pension.
Eligibility for a general disability pension requires being an Israeli resident aged 18 to retirement age, with a physical, mental, or cognitive impairment reducing work capacity by at least 50%. Income must be below 8,261 shekels for 90 consecutive days prior to application. A medical assessment must determine at least 60% disability, or 40% with multiple conditions, with one condition at least 25%. The National Insurance Institute also offers rehabilitation services, vocational training, and assistance with job searching.
