Maternity Leave in Israel: Pension and Study Fund Contributions Explained

Israeli law mandates that employers continue pension and study fund contributions for employees on maternity leave, ensuring continuity of benefits as if the employee were still working. This is governed by the 2008 Women's Employment Law, specifically section 7a, which requires employers to maintain contributions based on the employee's regular salary and usual rates.

While the employee's salary stops during maternity leave, both the employer's and employee's portions of pension and study fund contributions continue. The employee's share is typically deducted in advance from the last paycheck before leave begins for the first two months, and then managed as a monthly advance against future salary. For periods beyond the initial maternity allowance, employers are not obligated to continue contributions but may choose to do so. Employees can opt for self-contributions to maintain their benefits and insurance coverage during these later stages of leave.

A key condition for these continued contributions is employee seniority, requiring at least six months of employment with the same employer before pregnancy, and continued employment throughout the pregnancy. Employees who changed jobs shortly before or during pregnancy may not be eligible for these automatic contributions, potentially impacting their long-term savings and insurance coverage. In such cases, employees can make direct contributions to their funds as independent members to preserve their rights.

The law also grants returning mothers specific rights, including a daily hour of absence without pay deduction for four months and protection against dismissal or reduction in work hours and income for 60 days post-leave. These provisions aim to support women transitioning back to work after childbirth. The calculation of maternity allowance itself follows a separate formula with daily caps, and the same contribution rules apply if a father takes parental leave.