Post-Army Financial Responsibilities: What Ex-Soldiers Need to Know
Translated & summarized from N12 by baba
Former Israeli soldiers must now manage their own National Insurance and health insurance payments, which can cost 266 shekels monthly if unemployed. While a two-month exemption exists, individuals need to update their status to avoid accumulating debt. Upon starting work, these payments are deducted from salaries, and pension contributions begin. Travel abroad does not halt these obligations, and students may qualify for reduced rates. Ex-soldiers also receive a year of free public transport and tax credits, provided they update their profiles and meet eligibility criteria.
The story in 6 lines · by baba
- Former Israeli soldiers must pay 266 shekels monthly for National Insurance and health insurance if unemployed.
- A two-month exemption from these payments is available post-discharge, but requires no employment.
- Working individuals have these payments deducted from their salary by employers.
- Travel abroad does not exempt residents from National Insurance payments.
- Ex-soldiers are eligible for a year of free public transportation after updating their profile.
- Discharged soldiers receive additional tax credits for 36 months post-service.
Upon completing military service in Israel, former soldiers face new financial obligations that were previously handled by the army. These include payments for National Insurance and health insurance, which can amount to 266 shekels per month if not properly managed, even when unemployed. While there's a two-month exemption from these payments after discharge, it's conditional on not working and meeting specific service criteria. Those who don't work after this period must still pay, potentially accumulating significant debt if they don't update their status with the National Insurance Institute.
When ex-soldiers begin working, these payments are typically deducted from their salary by employers. However, it's crucial to verify that these deductions are correctly made and that no double payments occur. Self-employed individuals must arrange their own payments based on income. Additionally, the first civilian job triggers mandatory pension contributions, with both employee and employer contributing to a retirement fund.
Travel abroad does not exempt individuals from National Insurance payments as long as they are considered Israeli residents. Students may be eligible for a reduced rate on National Insurance and health insurance, but their status must be updated. Ex-soldiers are also entitled to a year of free public transportation, but they must update their "released soldier profile" on their Rav-Kav or public transport app to activate this benefit. Furthermore, discharged soldiers are eligible for additional tax credits for 36 months post-service, which can reduce income tax liability if they are employed. It is essential for former soldiers to proactively manage these financial matters to avoid unexpected debts and to maximize their benefits.
