Social Security Programs Throughout the World: Asia and the Pacific, 2012

 

Israel

Exchange rate: US$1.00 = 3.71 new shekels.

Old Age, Disability, and Survivors

Regulatory Framework

First and current laws: 1953 (national insurance), implemented in 1954; 1955 (survivor pensions); 1957 (old-age pensions); 1974 (disability pensions); 1980 (income support); 1982 (income support benefits); and 1988 (long-term care benefits).

Type of program: Social insurance and social assistance system.

Coverage

Social insurance: Residents of Israel.

Exclusions: Persons who immigrated to Israel for the first time after age 60 to 62 (depending on date of birth).

Social assistance (income support programs, means-tested): Residents of Israel.

Source of Funds

Insured person: 0.22% of earnings up to and 3.85% of earnings above 60% of the national average wage (old-age and survivor pensions); 0.11% of earnings up to and 1.86% of earnings above 60% of the national average wage (disability benefits); and 0.01% of earnings up to and 0.14% of earnings above 60% of the national average wage (long-term care).

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The maximum monthly earnings used to calculate contributions are five times the old-age basic amount as of January 1 each year.

The old-age basic amount is 8,370 new shekels a month.

The national average wage is 8,619 new shekels a month.

Self-employed person: 3.09% of earnings up to and 5.21% of earnings above 60% of the national average wage (old-age and survivor pensions); 1.11% of earnings up to and 1.86% of earnings above 60% of the national average wage (disability benefits); and 0.12% of earnings up to and 0.18% of earnings above 60% of the national average wage (long-term care).

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The national average wage is 8,619 new shekels a month.

Employer: 1.30% of earnings up to and 2.04% of earnings above 60% of the national average wage (old-age and survivor pensions); 0.26% of earnings up to and 0.42% of earnings above 60% of the national average wage (disability benefits); and 0.04% of earnings up to and 0.09% of earnings above 60% of the national average wage (long-term care).

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The maximum monthly earnings used to calculate contributions are five times the old-age basic amount as of January 1 each year.

The old-age basic amount is 8,370 new shekels a month.

The national average wage is 8,619 new shekels a month.

Government: Through a contribution of 0.25% of insured persons' earnings (old-age and survivor pensions), 0.10% of insured persons' earnings (disability benefits), and 0.02% of insured and self-employed persons' earnings (long-term care), the government subsidizes the following: 17.1% of total insured person and employer contributions; the total cost of special old-age and survivor benefits and long-term care benefits for new immigrants; and the total cost of social assistance income support programs and the mobility allowance.

Qualifying Conditions

Old-age pension

Social insurance: Age 70 (men) and age 67.33 (women, gradually rising to age 70 by 2020) without an earnings test; age 67 (men) and age 62 (women, gradually rising to age 64 starting in 2017) for the earnings-tested pension.

The pension is gradually reduced by 0.60 of a shekel for every shekel of income that exceeds 57% (individuals) or 76% (with dependents, according to the number of dependents) of the national average wage.

The national average wage is 8,619 new shekels a month.

Must have at least 60 months of coverage in the last 10 years or a total of 144 months of coverage. No qualifying period for insured women who are widowed, divorced, abandoned, married to an uninsured husband, unmarried and aged 57 or older at the time of immigration, or receiving a disability pension during the month before reaching the retirement age.

Income supplement: Paid if income, including the pension, is less than the minimum income established by law.

Pension deferral increment: Paid to persons older than the retirement age who did not meet the earnings test for a pension.

Dependent's supplement (earnings tested): Paid for a dependent spouse (earnings tested) or child. A housewife or widow who receives a pension is not eligible.

Seniority increment: Paid for more than 10 years of coverage. A housewife or widow who receives a pension is not eligible.

Special old-age benefit (social assistance): Paid to new immigrants not insured because of their age at the time of immigration.

Income support benefit (social assistance): Must have at least 24 months of continuous residence (12 cumulative months for new immigrants), subject to a means and employment test; total income from any source must be lower than an amount established by law.

Benefits are payable abroad under bilateral agreement.

Disability pension: Aged 18 to the retirement age for the earnings-tested old-age pension. There is no qualifying period. Must have either a total assessed degree of disability of at least 60% (from one or more impairments), a total assessed degree of disability of at least 40% (one impairment must be assessed as at least 25%), or a total assessed degree of disability of at least 50% (for a housewife with a disability).

Must not be able to support him or herself from employment, have at least a 50% assessed loss of earning capacity, and have no or limited income from employment.

The full pension is paid if assessed with a degree of disability greater than 74% and if income from employment is less than the monthly national average wage.

The national average wage is 8,619 new shekels a month.

Partial disability: Paid for an assessed disability of up to 74%.

Incentive pension: The insured's income from employment must be higher than the threshold for a normal disability pension and he or she was entitled to a disability pension for a least 12 consecutive months before his or her income exceeded the threshold.

Additional monthly pension (AMP): Must have at least a 50% assessed degree of disability and at least a 75% assessed loss of earning capacity. Must not reside in an institution where a public body pays over 50% of expenses.

Graduated AMP: Paid to recipients of the AMP whose income from employment exceeds the threshold for the normal disability pension.

Dependent's supplement: Paid for a spouse or a child with earnings below 57% of the national average wage. (A housewife with a disability is entitled to a supplement for her child only.)

Income supplement: Paid if income, including the disability pension, is less than the minimum income established by law.

Attendance allowance: Paid if the insured requires the constant attendance of others to perform daily functions. Must be assessed with at least a 60% disability and receiving a disability pension (or assessed with a disability of at least 75% and subject to an earnings test).

Mobility allowance: Aged 3 to 67 with an assessed loss of mobility of at least 40% (with a valid driver's license) or 60% (without a valid driver's license if there is an authorized driver). A medical committee assesses the degree of disability.

Disabled child benefit: Paid for a child with a disability, younger than age 18, not living in an institution or with a foster family, and not receiving a mobility allowance (unless the child's parent has two children, both with a disability, and under certain other circumstances).

Long-term care benefit (earnings tested): At least the retirement age for an earnings-tested old-age pension, not living in an institution, and requiring the constant attendance of others to perform daily functions. The benefit is paid to an individual with income less than 1.5 times the national average wage, to a couple with income less than 2.25 times the national average wage, or to a person with a child with additional income less than 0.75 times the national average wage for each child.

The national average wage is 8,619 new shekels a month.

Benefits are payable abroad under bilateral agreement.

Survivor pension (social insurance): Paid to a widow(er) or child up to age 18 (age 20 if in higher education or the premilitary framework, age 21 if in military or volunteer service, up to age 24 in certain other cases) of an insured person who died from any cause, except war or hostile action. The deceased had 12 months of coverage in the year before death, 24 months in the last five years, 60 months in the last 10 years, or met the qualifying period for an old-age pension. The widow(er)'s pension ceases on remarriage.

A widow must have been married to (or been the common-law spouse of) the deceased at the time of his death and for at least one year (six months if aged 55 or older) or had a child with the deceased.

A widower must have been married to (or been the common-law spouse of) the deceased at the time of her death and for at least one year (six months if aged 55 or older) and must either have a child living with him or meet an earnings test.

Survivor pension with income supplement (social assistance): Paid to individuals whose combined income from employment and a survivor pension is less than an amount established by law.

Survivor pension seniority increment: Paid if the insured had more than 10 years of coverage.

Survivor grant: Paid to a widow(er) younger than age 40 without dependent children or to a widower no longer eligible for a survivor pension.

Special survivor benefit: Paid to the widow and orphans of a person who resided in Israel but did not meet the age requirements to be insured at the time of immigration.

Marriage grant: Paid to a widow(er) on remarriage.

Bar Mitzvah grant: Paid to orphans at age 13 (boys) and age 12 (girls).

Death grant: Paid to the widow(er) or children of a deceased pensioner.

Funeral grant: Paid to the organization responsible for the funeral.

Benefits are payable abroad under bilateral agreement.

Old-Age Benefits

Old-age pension

Social insurance: 17.7% of the monthly old-age basic amount is paid. An additional 1% is paid to pensioners aged 80 and older.

The monthly old-age basic amount is 8,370 new shekels.

Income supplement: 30.3% to 65.2% of the monthly old-age basic amount, depending on marital status and the number of children, is paid to pensioners younger than age 70; 31.2% to 66.5% if aged 70 to 79; and 32.6% to 68.5% if aged 80 or older. The resulting amounts are increased by an additional 7% for all age groups.

Pension deferral increment: The pension is increased by 5% for each year retirement is deferred.

Dependent's supplement: 8.9% of the monthly old-age basic amount is paid for the spouse and 5.6% of the monthly old-age basic amount for each of the first two children up to age 18 (age 20 if in higher education or the premilitary framework, age 21 if in military or volunteer service, age 24 in certain other cases).

The monthly old-age basic amount is 8,370 new shekels.

Seniority increment: The pension is increased by 2% for each year of coverage exceeding 10 years, up to 50% of the pension.

Special old-age benefit (social assistance): The benefits are the same as the social insurance old-age pension.

Income support benefit (social assistance): 20% to 25% of the monthly old-age basic amount is paid to an individual pensioner; 27.5% to 37.5% to a couple without children. The benefit amount varies with age. Widows, separated persons, and single parents receive a higher benefit.

The monthly old-age basic amount is 8,370 new shekels.

Benefit adjustment: Benefits are adjusted annually in January according to the increase in the consumer price index in the previous year.

Permanent Disability Benefits

Disability pension (social insurance): 25% of the disability basic amount plus an additional 7% of the resulting amount is paid.

The disability basic amount is 8,475 new shekels a month.

Partial disability: A percentage of the full disability pension is paid according to the assessed degree of disability.

Incentive pension: Up to a full disability pension is paid according to the insured's income.

For a partial disability, a pension is paid according to the insured's earning capacity or a schedule in law (whichever is lower).

Additional monthly pension (AMP): 17% of the disability pension is paid if the assessed degree of disability is at least 80%; 14% for an assessed degree of disability of 70% to 79%; 11.5% for an assessed degree of disability of 50% to 69%.

Graduated AMP: The full AMP amount is paid in the first year, 75% in the second year, 50% in the third year, 25% in the fourth year, and none in the fifth year.

Dependent's supplement (income tested): Up to 12.5% of the disability basic amount is paid for a spouse; 10% for each of the first two children. An additional 7% is paid for both categories.

Income supplement: Paid if income, including the disability pension, is less than an amount established by law.

Attendance allowance: 50%, 105%, or 175% of the full disability pension is paid, according to the assessed degree of dependence.

Attendance allowance increment: 14%, 28.5%, or 42.5% of the full disability pension is paid, according to the assessed degree of dependence.

Mobility allowance: The monthly benefit varies depending on whether the insured has earned income, has a driver's license, and owns a car. Additional cash benefits may be provided to help cover car taxes and costs resulting from a loss in mobility.

Disabled child benefit: 30% to 140% of the full disability pension is paid, according to the assessed degree of disability.

Disabled child benefit supplements: The cost of schooling for students with disabilities and an additional benefit for children with severe disabilities is paid.

The maximum total benefit is 140% of the full disability pension.

Long-term care benefit (earnings tested): 91% of the full disability pension is paid if the beneficiary is largely dependent on the help of others; 150% if severely dependent; 168% if completely dependent. Benefits are normally paid directly to the organization providing the long-term care services. (If long-term care services are not available and the beneficiary lives with and is cared for by a family member, 80% is paid directly to the caregiver.)

The benefit is reduced by 50% if the insured's income is higher than the national average wage for a single person; by 50% if income is higher than 1.5 times the national average wage for a couple, plus 0.5 times the national average wage for each child, up to a maximum.

The national average wage is 8,619 new shekels a month.

Benefit adjustment: Benefits are adjusted annually in January according to the increase in the consumer price index in the previous year.

Survivor Benefits

Survivor pension (social insurance): 17.7% of the monthly old-age basic amount is paid to a widow(er) aged 50 or older or caring for a child; 13.3% to a widow(er) aged 40 to 49 with no children.

The monthly old-age basic amount is 8,370 new shekels.

Child increment: 8.3% of the monthly old-age basic amount is paid for each child.

11% of the basic old-age amount is paid for a single child not covered by the survivor pension child increment; 8.3% each if there is more than one child; 11% for each full orphan.

If the survivor also receives the old-age pension, the survivor pension is reduced by 50%.

Survivor pension with income supplement (social assistance): 30.3% to 60% of the monthly old-age basic amount minus 173 new shekels is paid to a widow(er) depending on his or her age and the number of children. The resulting amounts are increased by an additional 7%.

25% of the monthly old-age basic amount minus 173 new shekels is paid for a single child (orphans and abandoned children); 37.5% minus 346 new shekels for two children.

Survivor pension seniority increment: The pension is increased by 2% for each year the deceased had more than 10 years of coverage, up to 50% of the survivor pension.

Survivor grant: A lump sum of 36 months of the survivor pension is paid to a widow(er) younger than age 40 with no children.

Special survivor benefit: The benefits are the same as for the social insurance survivor pension.

Marriage grant: 36 months of the survivor pension is paid in two equal parts (the first upon marriage, the second two years later).

Bar Mitzvah grant: 33% of the disability basic amount is paid.

The disability basic amount is 8,475 new shekels.

Death grant: A lump sum of the disability basic amount is paid to the widow(er) or children of a deceased pensioner.

The disability basic amount is 8,475 new shekels.

Funeral grant: The cost of the burial is paid, up to a fixed amount.

Benefit adjustment: Benefits are adjusted annually in January according to the increase in the consumer price index in the previous year.

Administrative Organization

Ministry of Social Affairs (http://www.molsa.gov.il) provides general supervision.

National Insurance Institute (http://www.btl.gov.il) administers the program, collects contributions, and pays benefits through its branch offices.

Sickness and Maternity

Regulatory Framework

First and current laws: 1953 (national insurance), implemented in 1954; 1976 (vacation pay for adopting parents); 1986 (birth allowance); 1990 (at-risk pregnancy benefit); 1997 (paternity allowance); and 1995 (national health insurance).

Type of program: Social insurance system.

Coverage

Sickness benefits: All employees are covered under collective agreements. (Cash sickness benefits are not provided under the 1953 law.)

Maternity benefits: Employed persons, self-employed persons, and persons in vocational training.

Maternity grant: Insured women or the wife of the insured; persons working in but not residing in Israel, including self-employed persons.

Medical benefits: All persons residing in Israel.

Source of Funds

Insured person: 3.1% of earnings up to and 5% of earnings above 60% of the national average wage (medical benefits); 0.04% of earnings up to and 0.87% of earnings above 60% of the national average wage (maternity benefits).

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The maximum monthly earnings used to calculate contributions are five times the old-age basic amount as of January 1 each year.

The old-age basic amount is 8,370 new shekels a month.

The national average wage is 8,619 new shekels a month.

Self-employed person: 3.1% of earnings up to and 5% of earnings above 60% of the national average wage (medical benefits); 0.56% of earnings up to and 0.82% of earnings above 60% of the national average wage (maternity benefits).

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The national average wage is 8,619 new shekels a month.

Employer: None (medical benefits); 0.11% of earnings up to and 0.24% of earnings above 60% of the national average wage (maternity benefits).

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The maximum monthly earnings used to calculate contributions are five times the old-age basic amount as of January 1 each year.

The old-age basic amount is 8,370 new shekels a month.

The national average wage is 8,619 new shekels a month.

Government: None (medical benefits); 0.09% of earnings (maternity benefits). Contributes to the birth allowance and the hospitalization grant.

Qualifying Conditions

Cash sickness benefits: Sickness benefits are not provided under the 1953 law.

Cash maternity benefits: The full benefit is paid with at least 10 months of coverage in the last 14 months (or 15 months in the last 22 months). A partial benefit is paid with at least six months of coverage in the last 14 months.

Under certain conditions a father with at least 10 months of coverage in the last 14 months (or 15 months in the last 22 months) may share the maternity leave period with the mother.

Adoption and foster benefit: Paid for the cessation of work to adopt (or foster for at least half a year) a child younger than age 10. For a child up to age 3, at least one of the adopting or foster parents must have at least 10 months of coverage in the last 14 months (or 15 months in the last 22 months). A father may take a period of at least 21 days of leave to care for the child when the mother returns to work. For a child older than age 3, at least one of the adopting or foster parents must have at least 10 months of coverage in the last 14 months (or 15 months in the last 22 months). A partial benefit is paid with at least six months of coverage in the last 14 months.

Risk pregnancy benefit: Paid for the cessation of work due to a risk to the pregnancy. Must be authorized by an obstetrician. The insured must have at least 10 months of coverage in the last 14 months (or 15 months in the last 22 months) and must not receive a similar payment from any other source.

Maternity grant: Paid for the purchase of a layette for a newborn child. If not residing in Israel, the woman or her husband must have worked in Israel for at least six months immediately before childbirth. The birth must occur in Israel.

Adoption grant: Paid for the adoption of a child older than 10 years old.

Hospitalization grant: Paid for necessary hospitalization for a birth.

Multiple birth allowance: Paid for the birth of three or more children, if at least three survive past 30 days. The mother must be entitled to the maternity grant.

Hospital transportation costs: Provided for women who travel by ambulance to a hospital and give birth within three days of arriving at the hospital nearest to the woman's residence.

Special allowance and special benefit: Paid for a mother who was insured for the maternity grant and who died while giving birth or within a year of giving birth.

Benefits are payable abroad under bilateral agreement.

Sickness and Maternity Benefits

Sickness benefit: Benefits are provided to employees under collective agreements; 75% to 100% of earnings are paid for at least 90 days.

Maternity allowance: 100% of the insured's average daily net income in the three months preceding the day on which the insured woman stopped work is paid for up to 14 weeks; seven weeks for a partial benefit. (May be extended if the mother or child is hospitalized during the maternity leave.)

Adoption and foster benefit: For a child up to age 3, 100% of the insured's average daily net income in the three months preceding the day on which the insured woman ceased working because of the pregnancy (or the day of the adoption) is paid for up to 14 weeks; seven weeks for a partial benefit. For a child over age 3, 100% of the insured's average daily net income in the three months preceding the adoption day is paid for up to four weeks.

Risk pregnancy benefit: For each day of rest from work, the grant is the disability basic amount divided by 30 or the insured woman's income in the three months preceding the day she stopped working divided by 90, whichever is lower.

Maternity and adoption grants: 1,695 new shekels is paid for the first child, 763 new shekels for the second child, and 509 new shekels for the third or subsequent child (higher for multiple births).

Hospitalization grant: 11,232 new shekels is paid for hospitalization expenses.

Multiple birth allowance: A percentage of the disability basic amount in January of the year of childbirth is paid for 20 months.

The disability basic amount is 8,475 new shekels a month.

Hospital transportation costs: In certain cases, a fixed amount is paid for the cost of transportation to the hospital.

Special allowance: For 24 months after the birth of a child, 30% of the national average wage is paid to the child's father or guardian for each child born; 12 months if the spouse is also receiving survivor or dependent benefits.

The national average wage is 8,619 new shekels a month.

Special benefit: If the spouse stops working to care for the child(ren), the injury allowance (75% of earnings, up to a maximum) is paid for up to 12 weeks.

Workers' Medical Benefits

Services are provided by doctors in hospitals owned and operated by, or under contract with, the sickness fund. Benefits include general and specialist care, medicine, laboratory services, hospitalization, and rehabilitation.

Cost sharing: Patients pay a set amount toward the cost of drugs and appliances, which varies according to the sickness fund.

Dependents' Medical Benefits

Medical benefits for dependents are the same as those for the insured.

Administrative Organization

Ministry of Social Affairs (http://www.molsa.gov.il) provides general supervision.

National Insurance Institute (http://www.btl.gov.il) administers the program, collects contributions, and pays benefits through its branch offices.

Sickness insurance and medical care are administered by four funds under the supervision of the Ministry of Health (http://www.health.gov.il), Leumit (National) Sickness Fund (http://www.leumit.co.il), Clalit (General) Sickness Fund (http://www.clalit.org.il), Maccabi Healthcare Services (http://www.maccabi-health.co.il), and Meuhedet (United) Sickness Fund (http://www.meuhedet.co.il).

Work Injury

Regulatory Framework

First and current laws: 1953 (national insurance), implemented in 1954 and 1956 (self-employed persons), implemented in 1957.

Type of program: Social insurance system.

Coverage

Employed persons, self-employed persons, vocational trainees and those undergoing vocational rehabilitation, working prisoners, foreign residents working in Israel, migrant workers working in Israel, and some Israelis working abroad.

Exclusions: Police, prison service, and defense force employees.

Source of Funds

Insured person: None.

Self-employed person: 0.39% of earnings up to and 0.68% of earnings above 60% of the national average wage.

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The national average wage is 8,619 new shekels a month.

Employer: 0.37% of earnings up to and 0.90% of earnings above 60% of the national average wage.

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The maximum monthly earnings used to calculate contributions are five times the old-age basic amount as of January 1 each year.

The old-age basic amount is 8,370 new shekels a month.

The national average wage is 8,619 new shekels a month.

Government: 0.03% of insured and self-employed persons' earnings.

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The maximum monthly earnings used to calculate contributions are five times the old-age basic amount as of January 1 each year.

The old-age basic amount is 8,370 new shekels a month.

Qualifying Conditions

Work injury benefits

Temporary disability benefit (injury allowance): Paid for a temporary work incapacity and absence from work as the result of a work injury or occupational disease. There is no minimum qualifying period.

Temporary disability pension: Paid to a worker assessed with a temporary degree of disability of at least 9%. There is no minimum qualifying period.

Permanent disability pension: Paid to a worker assessed with a permanent degree of disability of at least 20%. There is no minimum qualifying period.

Disability grant: Paid to a worker assessed with a permanent degree of disability of at least 9% but less than 20%. There is no minimum qualifying period.

Special pension and special grant: Paid for an assessed degree of disability of at least 75%; 65% to 74% for persons with difficulty walking.

Survivor pension: Paid to a widow aged 40 or older; at any age with a dependent child or if unable to support herself. Paid to a widower with a dependent child, or without children if aged 40 or older and unable to support himself or with an income below 4,569 new shekels a month. The pension ceases on remarriage.

Survivor grant: Paid to a widow or a widower not entitled to a survivor pension.

Marriage grant: Paid to a widow(er) on remarriage.

Bar-mitzvah grant: Paid to orphans at age 13 (boys) and age 12 (girls).

Death grant (work injury-related death): Paid to the deceased's spouse and children if the deceased received a disability pension for an assessed degree of disability of at least 50%, had reached retirement age for the earnings-tested old-age pension, or received a dependent's allowance.

Death grant (nonwork injury-related death): Paid to the deceased's spouse and children if the deceased had an assessed degree of disability of at least 50% for at least 36 months before death and received a work injury disability pension throughout this period. The deceased's spouse's average income must not be higher than twice the national average wage in the year preceding the death.

The national average wage is 8,619 new shekels a month.

Funeral grant: Paid for the insured's funeral.

Temporary Disability Benefits

Temporary disability benefit (injury allowance): The daily benefit is 75% of covered earnings in the three months before the injury occurred, up to a maximum.

The benefit is paid after a two-day waiting period (waived if the incapacity for work lasts at least 12 days) for up to 13 weeks. The National Insurance Institute pays the benefit and is reimbursed by the employer for the first 12 days. Self-employed persons are not eligible for the benefit for the first 12 days of incapacity.

Temporary disability pension: A percentage of the insured's monthly wage is paid according to the assessed degree of medical disability.

Permanent Disability Benefits

Permanent disability pension: For a total (100%) disability, the monthly pension is 75% of the insured's earnings.

Partial disability: A percentage of the full pension is paid according to the insured's earnings and assessed degree of disability.

Income support: Low-income recipients of disability pensions may receive an income supplement.

Disability grant: A lump sum of 43 months of the disability pension is paid.

Special pension and special grant: A subsidy to help meet personal expenses and transportation costs is paid.

Benefit adjustment: Benefits are adjusted annually in January according to the increase in the consumer price index in the previous year.

Workers' Medical Benefits

See Workers' Medical Benefits under Sickness and Maternity.

Survivor Benefits

Survivor pension: 40% to 100% of the disability pension the deceased would have been eligible to receive if assessed with a total disability is paid to the widow(er), including supplements for children.

Survivor grant: A lump sum of 36 months of survivor pension is paid.

Orphan's pension: 20% of the disability pension the deceased would have been eligible to receive if assessed with a total disability is paid for the first orphan and 10% each for the second and third. The pension is paid to the widow(er) in addition to the survivor pension.

Full orphan's pension: 60% of the disability pension the deceased would have been eligible to receive if assessed with a total disability is paid for the first orphan, 20% for the second, and 10% each for the third and fourth. The pension is paid if there is no widow(er) entitled to the survivor pension.

Other dependent relatives: If there is no eligible widow(er) or orphan, 50% of the disability pension the deceased would have been eligible to receive if assessed with a total disability is paid to one dependent, up to 100% for four or more dependents.

Income support: Low-income disability pensioners may receive an income supplement.

Marriage grant: 36 months of pension is paid in two equal parts (the first on marriage, the second two years later).

Bar Mitzvah grant: 33% of the disability basic amount is paid.

The disability basic amount is 8,475 new shekels.

Death grant (work injury-related): A lump sum of the disability basic amount is paid.

The disability basic amount is 8,475 new shekels.

Death grant (nonwork injury-related): 60% of the disability pension the deceased would have been eligible to receive if assessed with a total disability multiplied by 36 is paid in two equal parts.

Funeral grant: The cost of the funeral is paid, up to a maximum, to the organization responsible for the funeral.

Administrative Organization

Ministry of Social Affairs (http://www.molsa.gov.il) provides general supervision.

National Insurance Institute (http://www.btl.gov.il) administers the program, collects contributions, and pays benefits through its branch offices.

Unemployment

Regulatory Framework

First and current laws: 1970 (unemployment insurance) and 1973 (payment of benefits).

Type of program: Social insurance system.

Coverage

Employed permanent and temporary residents of Israel.

Exclusions: Self-employed persons.

Source of Funds

Insured person: 0.01% of earnings up to and 0.21% of earnings above 60% of the national average wage.

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The maximum monthly earnings used to calculate contributions are five times the old-age basic amount as of January 1 each year.

The old-age basic amount is 8,370 new shekels a month.

The national average wage is 8,619 new shekels a month.

Self-employed person: Not applicable.

Employer: 0.03% of earnings up to and 0.07% of earnings above 60% of the national average wage.

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The maximum monthly earnings used to calculate contributions are five times the old-age basic amount as of January 1 each year.

The old-age basic amount is 8,370 new shekels a month.

The national average wage is 8,619 new shekels a month.

Government: 0.06% of insured persons' earnings.

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The maximum monthly earnings used to calculate contributions are five times the old-age basic amount as of January 1 each year.

The old-age basic amount is 8,370 new shekels a month.

Qualifying Conditions

Unemployment benefits: Must be involuntarily unemployed, registered at the labor exchange, and ready and able to perform any suitable work.

Regular employee: Must have paid contributions for at least 360 work days in the 540 days before unemployment.

Daily employee: Must have paid contributions for at least 300 work days in the 540 days before unemployment.

Unemployment Benefits

A daily benefit of 20% to 80% of the insured's average daily wage in the 75 work days before unemployment is paid.

The maximum daily benefit is 344.76 new shekels for the first five months and 229.84 new shekels from the sixth month onward. The benefit is paid after a five-day waiting period (the waiting period is applied each time the insured receives unemployment benefits for four consecutive months).

The maximum duration of payment is 50 to 175 days, depending on the category of beneficiary.

Administrative Organization

Ministry of Social Affairs (http://www.molsa.gov.il) provides general supervision.

National Insurance Institute (http://www.btl.gov.il) administers the program, collects contributions, and pays benefits through its branch offices.

Family Allowances

Regulatory Framework

First law: 1959.

Current laws: 1975 (children's insurance), 1984 (income test), and 1993 (universal).

Type of program: Universal system.

Coverage

Residents of Israel with one or more children.

Source of Funds

Insured person: None.

Self-employed person: 1.32% of earnings up to and 2.4% of earnings above 60% of the national average wage.

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The national average wage is 8,619 new shekels a month.

Employer: 1.32% of earnings up to and 2.08% of earnings above 60% of the national average wage.

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The maximum monthly earnings used to calculate contributions are five times the old-age basic amount as of January 1 each year.

The old-age basic amount is 8,370 new shekels a month.

The national average wage is 8,619 new shekels a month.

Government: 0.8% of insured persons' earnings and 208% of the total amount from insurance contributions; funds the study grant and payments to new immigrant children.

The minimum monthly earnings used to calculate contributions are the monthly minimum wage.

The monthly minimum wage is 4,100 new shekels.

The maximum monthly earnings used to calculate contributions are five times the old-age basic amount as of January 1 each year.

The old-age basic amount is 8,370 new shekels a month.

Qualifying Conditions

Family allowances: The child must be younger than age 18, unmarried, and residing in Israel.

Family allowance increment: Paid to families with at least three children and receiving certain National Insurance benefits.

Study grant: Paid at the beginning of the school year for a child aged 6 to 14 residing in Israel. Paid to a single-parent family; a parent with four or more children and receiving certain National Insurance benefits; an orphan or abandoned child; a child who immigrated to Israel without an insured parent; some women residing in battered women's shelters; and a person who receives an income support benefit separately from his or her spouse.

Family Allowance Benefits

Family allowances: For children born before June 1, 2003: 173 new shekels a month is paid for the first child, 252 new shekels for the second child, 284 new shekels for the third, 446 new shekels for the fourth, and 384 new shekels for the fifth and each subsequent child.

For children born on or after June 1, 2003: 173 new shekels a month is paid for the first child, 252 new shekels each for the second, third, and fourth children, and 173 new shekels for the fifth and each subsequent child.

Family allowance increment: 70% of the family allowance basic amount is paid for each of the third and fourth children.

The family allowance basic amount is 173 shekels.

Study grant: 18% of the old-age basic amount is paid for each child aged 6 to 11; 10% for each child aged 12 to 14.

The old-age basic amount is 8,370 new shekels a month.

Benefit adjustment: Benefits are adjusted annually in January according to the increase in the consumer price index in the previous year.

Administrative Organization

Ministry of Social Affairs (http://www.molsa.gov.il) provides general supervision.

National Insurance Institute (http://www.btl.gov.il) administers the program, collects contributions, and pays benefits through its branch offices.