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

An Israeli employee earning 15,000 shekels per month 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 employee pays 4,259 shekels and the employer 2,802 shekels. Despite these substantial payments, the funds do not accumulate in personal accounts but finance various social benefits including healthcare, old-age pensions, unemployment, disability, and family allowances.

Compared internationally, Israel’s contributions are lower than many Western European countries but higher than some others. Unlike the U.S., where Social Security benefits are calculated based on the 35 highest-earning years and linked directly to contributions, Israel provides a basic old-age pension that is similar regardless of the amount paid during working years. European countries like Germany and France generally require higher social security payments but offer more extensive services such as unemployment benefits, parental leave, and long-term care.

The article highlights that National Insurance in Israel functions as social insurance rather than an investment. Healthy individuals with continuous careers may receive less in benefits than they contribute, while those requiring long-term care or disability support may receive significantly more. The universal healthcare system and broader social safety net in Israel contrast with the U.S. model but offer fewer benefits compared to some European systems. The piece concludes that the system’s value depends on individual circumstances, emphasizing its role in preventing economic collapse for vulnerable populations.