Israeli Workers Pay Over One Million Shekels to National Insurance Over Career, Less Than Europe

An Israeli employee earning 15,000 shekels monthly contributes, together with their employer, over one million shekels to National Insurance and health insurance during a 40-year career. Monthly contributions vary by salary: for example, a worker earning 10,000 shekels pays about 608 shekels, with the employer adding 522 shekels; at 40,000 shekels salary, the worker pays 4,259 shekels and the employer 2,802 shekels. These payments fund healthcare, old-age pensions, unemployment, maternity, disability, long-term care, work injury, child benefits, and survivors' benefits. However, the funds are not accumulated in personal accounts, and a healthy individual with a continuous career may receive less than paid, while those needing extended support may receive more.

Comparatively, in the United States, both employee and employer pay 6.2% of wages to Social Security, plus Medicare contributions, with pensions calculated based on the 35 highest earning years, linking benefits more directly to contributions. In Israel, pension benefits are less correlated with lifetime contributions, often providing similar basic old-age pensions regardless of large income disparities.

European countries like Germany, France, and Scandinavian nations generally impose higher social security contributions but offer broader services including unemployment benefits, parental leave, health, disability, and long-term care. Germany's public pension system uses a points system tied to salary and years worked, resulting in pensions more proportional to contributions. Israeli social benefits are lower in comparison but include universal health insurance and a wider social safety net than the U.S.

Overall, Israel's National Insurance functions as social insurance rather than an investment. While some may feel they receive less than they pay if they remain healthy, the system provides crucial financial protection for those facing unemployment, disability, or long-term care needs. The article was originally published in Bizportal on July 28, 2026.