What is the pension amount in Israel in 2021

Pensions in Israel are paid once a month. Mainly insurance. Payments are also provided for immigrants. The state pension system is based on social justice. In the formation of accruals, the leading role is given to the insurance period. If there is a shortage, the state assigns payments, the purpose of which is to raise the resident’s income level to the subsistence level.

Let us say right away that the retirement age in Israel today is higher than in Russia. This is 64 years for women and 67 years for men. At the same time, it is difficult to calculate the average pension paid; it depends on a large number of parameters, which we will describe later in the article. This is approximately 5.3 thousand ILS (97.573 thousand RUB or $1.44 thousand). At the same time, women on average earn about 1.5 times less than men.

Jerusalem, Israel

How do pensioners live in Israel (what is their income and what is enough for)

The quality and standard of living are quite high. The state provides benefits to elderly Israelis for:

• payment for travel on trains, buses and light rail (50%);
• flights carried out by Israeli airlines;
• car parking (up to 25%);
• visiting museums, exhibitions, theaters and cinemas;
• payment of municipal property tax (exemption from it is possible);
• payment for electricity, TV channel services, as well as health insurance;
• buying medicines;
• renting an apartment;
• receiving social housing;
• payment of land tax;
• use of banking services.

Most of the above benefits are granted automatically to Israeli residents once they reach a certain age (64 years for women and 67 years for men).

Residents who have had the opportunity to work in Israel for a long time feel best. In this case, the amount of the pension will provide them with a comfortable old age. It is more difficult for migrants of retirement age. State payments can only cover basic expenses. For this reason, many repatriated pensioners have to work part-time.

Retired military personnel are in a privileged position. A pensioner has the right to add additional payments to his pension compensation if he served in the Israeli army. In the Promised Land, representatives of both sexes have the right to serve in the armed forces. Their income is about $1,700 per month. The amount of a military pension is determined by the age of demobilization of the serviceman, as well as the duration of service and its place. The maximum payments are received by pensioners who served in IDF military units that took part in hostilities.

Also, upon retirement, members of agricultural communes feel relatively comfortable, about whom the community takes care, providing food and housing, social care and medical care free of charge. In addition, the community allocates small amounts for pocket expenses.

For those Israelis of retirement age who are forced to be content with only the amount of benefits equal to the minimum subsistence level, free food kitchens are provided. However, it is worth noting that absolutely all pensioners, regardless of their income level, have the right to free medical care, which is provided in medical institutions with the latest medical equipment and where highly qualified specialists work. This factor has a positive impact on the average life expectancy in the country, which is one of the highest in the world.

When performing calculations, the exchange rate of the shekel (ILS) to the ruble (RUB) was 1/18.41 and to the US dollar (USD) – 1/0.27. According to statistics, pensioners can save approximately 1 million ILS (18.41 million RUB) over 30-40 years of work for the benefit of the state with minimal earnings. Increasing deductions by only 20% will make it possible to achieve a monthly increase of 1 thousand ILS (18.41 thousand RUB).

General information about the life of pensioners in Israel

How retirees live in Israel largely depends on their well-being. If they managed to move to the country long before old age and earn a decent pension, a well-deserved rest is guaranteed.

It is more difficult for repatriates who settled in Israel after retirement: government payments hardly cover basic expenses, so most pensioners, in order to earn a living in Israel, in the absence of other passive income, are forced to work part-time in low-skilled and low-paid jobs.

With all this, the quality and standard of living in the country is very high in comparison with the CIS countries: average life expectancy is 82.4 years (80.7 years for men and 84.2 years for women). The state is trying in every possible way to stimulate the activity of the elderly, providing extensive benefits to pensioners in Israel, including:

• travel on buses, light rail and trains (50%);
• visiting museums, cinemas, theaters and other public institutions;
• municipal discount when paying property taxes;
• payment for electricity, apartment rent, assistance in obtaining social housing, partial payment for health insurance (if the pension is low).

Pension in Israel

There are three main types of pensions: old age, disability (determined by the degree of disability) and survivors (paid to relatives in the amount accumulated by the deceased, provided that he was an Israeli citizen and paid insurance premiums). Girls and boys, upon reaching the age of 12 and 13, respectively, who have lost their breadwinner, are entitled to a one-time payment equal to 5,383 ILS (99,101.03 RUB). An orphan has the right to claim only one type of payment.

It is envisaged that the income of a resident on a well-deserved retirement will come from two sources: old-age benefits and the funded part.

The funded part depends on the official length of service during which contributions were made to the pension fund (PF) or to the managers' insurance fund or to the reserve fund. The contribution period must be equal to or greater than 10 years. Payments are made monthly. If the pensioner dies, the unpaid amount passes to his heirs. Confirmed work experience gives an Israeli the right to a one-time benefit, which is the monetary equivalent of the state’s gratitude for work. The benefit amount is calculated based on average monthly income and the number of years worked, for example:

2500 ILS – average monthly earnings;

25 – number of years worked;

2500*25=62500 ILS (1,150,625 RUB) – the amount of a one-time remuneration.

The pensioner receives payments from:

1. National Insurance Institute, if the applicant was born in the Middle East and lived his life in this region or moved to Israel before the age of 60 (that is, he managed to make a labor contribution to the development of the state’s economy);
2. Ministry of Finance, if he belongs to other categories of residents.

In the first case, the applicant retains the opportunity to apply for additional payments, in the second, there is no such opportunity.

Unlike a funded pension, which is paid regardless of place of residence (if necessary, it can be transferred to anywhere in the world), a social pension (old age) is paid only to those who permanently reside in the territory of the state. Its value is approximately 1852 ILS (34095.32 RUB or $500 USD). The absence of a pensioner in Israel for more than 72 days is grounds for termination of social benefits.

The amount of the pension, both for natives and repatriates, is determined by the legal provisions governing the period of insured work experience. The reward is for life and is paid to all Israelis, regardless of citizenship.

Who can receive a pension

Social security for pensioners is made up of two components:

• pension;
• old age benefit.

The system works in such a way that the pension goes to those who made contributions to the pension fund throughout their entire working experience. The minimum work activity in the country must be at least 10 years. Simply put, having worked in Israel for the required years, a resident of pre-retirement age can stop pursuing a career and devote himself to new discoveries (travel, mastering professions, etc.). Breaks and changes of place of work do not matter, since only the fact that during all this time the citizen has made at least 120 contributions to the National Insurance Institute (“Bituach Leumi”) is taken into account. The size of these transfers depends on the citizen’s income, but this does not affect the final amount of funds received.

Types of pensions (minimum, old age, for disabled people)

In the state, instead of the term minimum pension, the wording is used: basic pension rate (BPS), which for a single pensioner is equal to 1554 ILS (28609.14 RUB) and 2355 ILS (43355.55 RUB) for a married couple, provided that the spouse is not entitled to work pension. For residents over 80 years of age, the BPS is equal to 1,641 ILS (30,210.81 RUB), and for a married couple – 2,400 ILS (44,184 RUB).

The amount of the total benefit consists of the pension of one of the spouses and an increase in bonuses for the second spouse (the wife has the right to claim a 50% increase in the spouse’s pension). If desired, a husband and wife living separately have the right to receive a 100% pension each for themselves.

In addition, the state allocates 492 ILS (9057.72 RUB) for each minor.

In 2021, the average pensioner acquired the right to increase PBS. For each year of service, its volume increases by 2%. At the same time, the legal limit for the growth of PBS is 50%.

Old age pension is the most common type of pension provision. Israelis who have made contributions to insurance, pension or reserve funds are eligible to receive it. Since 2008, pension insurance has become mandatory for workers upon reaching 20 years of age. The total contribution includes 18.5% of the salary, of which 6% goes to the employee, 12.5% ​​to the employer. The employee has the right to choose the type of insurance and fund. The amount of pension received is determined by the amount of accumulated savings. If they are insufficient, an Israeli has the right to claim additional payment from the state.

The cause of persistent disability can be both physical and mental in nature. The amount of additional payment to disabled people cannot exceed 25% of the average earnings. Both minors and housewives have the right to apply for this type of benefit, provided that the spouse is insured. Repatriates acquire this right after a year of residence in the country. The amount of the benefit is determined:

• having a dependent (increases by 50%);
• the amount of income of the spouses, which in total should not exceed 57% of earnings;
• the presence of other income inputs (in their absence, spouses are provided with benefits);
• degree of disability (if it exceeds 75%, the Israeli is exempt from paying contributions while receiving benefits).

Minimum old age benefit in Israel

Unfortunately, not all pensioners receive an average pension. Those citizens who have not been able to accumulate work experience have to rely only on a minimum pension. Although, in Israel this concept is not approved by law. The minimum payment is considered to be the base rate, which is subject to regular adjustment.

In the current period its size is:

• For a single pensioner – 1,554 shekels;
• For spouses living together – 2355 shekels.

Age limit also plays a role. If the old person is 80 years old, the pension rate increases to:

• 1640 shekels for a single person;
• 2400 shekels for a married couple.

It should be noted that a husband and wife living separately from each other have the right to receive a full pension each for themselves, and not a general benefit, which is the sum of two parameters:

• Pensions for one spouse;
• Increased benefits for the second spouse.

In addition, if minor children live with the pensioner, the law provides for additional payments to the pension in the amount of 492 shekels for each child.

From 2021, thanks to earned work experience, a pensioner can significantly increase their base rate. For each year of service over 4 years, its size increases by 2%. Previously, the rate increase was calculated for each year over 10 years of service.

However, you should not think that 30-40 years of experience will help increase the payment amount many times over. Legislative norms contain restrictions in this regard. The maximum permissible threshold for increasing the base rate is 50%.

Of course, minimum social security is not able to cover the cost of living. Therefore, the state approved additional payments from the Bituach Leumi fund to those pensioners who, after finishing their working career:

• They have an income of no more than 3,200 shekels per month for a single old person under 70 years of age or 5,100 shekels for a married couple;
• Have not accumulated sufficient savings for a decent life;
• Do not own a car more expensive than 40,000 shekels;
• They do not live in a kibbutz.

Retirement age in Israel

Since 2004, the legal retirement age has been set at 65 years for men and 60 years for women. Subsequently, as average life expectancy increased, it was increased for men to 67 years and to 62 years for women. This order remained until 2021. In 2017, the time for retirement was revised again, amounting to 64 years for women and 67 years for men, respectively, with their average life expectancy of 84.2 years and 80.7 years.

Upon reaching 67 years of age (for men), the employer acquires the right to terminate the employment contract with the employee. However, retirement is not mandatory. In order to encourage refusal to receive pension benefits, an additional payment of 5% of the base rate for every 12 months of deferment has been approved.

The retirement age is governed by a number of factors:

• collective agreement with the employer (may be increased);
• specifics of work (70 years for judges, 75 years for their assistants);
• characteristics of the population categories (can be increased or decreased): for spouses and parents of persons killed in the performance of military duty, the retirement age is increased to 72 years;
• For parents whose children died, regardless of the cause, the retirement age increases to 71 years.

The lowest retirement age is set at 60 years.

Pension benefit

Those who are just planning to move to this country are interested in the question of how retirees live in Israel. Considering that in the CIS countries the level of income of retired citizens is not very high, then it is quite logical that migrants are interested in whether they can live on an Israeli pension.

To become a recipient of benefits, you must write an application to the National Insurance Institute (Bituah Liumi) at your place of permanent residence. This must be done within 12 months of reaching retirement age. If the application is submitted later, the authorized body has the right to pay the subsidy retroactively, but not more than 1 year in advance.

If the application was submitted at an age when the pensioner has an absolute right to receive benefits, but with some delay, the department can also make payments for the past period, but not more than 2 years.

In the application form, you must indicate your personal data and attach to it all the necessary papers proving the applicant’s right to receive benefits or additional payments to them. The request form can be sent by mail.

Where to contact

In both the case of applying for a pension and a supplement, an application for a pension in the approved form is submitted to the nearest branch of the National Insurance Institute. The application can be submitted by personal visit, by mail, by fax, electronically or in any other available way.

You can submit an application for payment of the bonus immediately when applying for a labor pension or later, after the income of the pensioner or family is below the mentioned indicators.

The state old age subsidy is paid every month on the 28th. Payment is made by transferring funds to the recipient's account or a joint account with the following related parties:

• spouse;
• parents;
• brother, sister;
• daughter or son.

Citizens who were born before the 15th day of the month begin to receive payments in the month in which their birthday fell. Those born after the 15th will be able to receive subsidies only in the month following the one in which they reached retirement age. Persons entitled to additional payment will be able to receive it in the month of birth.

When calculating benefits, you need to take into account deductions that are withheld by the state. These include:

• monthly health insurance premium is $55 (196 NIS) for a single person and $79 (283 NIS) for a married couple;
• alimony;
• debts on insurance premiums;
• 103 NIS ($29) from the Department's allowance.

If the second spouse continues to work after receiving the funds, deductions will be made on a married couple basis. Conditions change only if the husband and wife live separately.

Old-age benefits are provided to those people who began to live in the country after 60 years of age. They are called new repatriates. A woman living with her husband will not receive benefits. Only the spouse can count on him. The amount of this social benefit will be equal to the standard accrual, taking into account allowances for the wife.

Living expenses often exceed income. Therefore, before emigrating to the country, it is better to carefully weigh the pros and cons.

A special feature of old-age benefits is that it cannot be accrued to a citizen who lives in the country for less than 10 months a year.

Social security for older people in Israel consists of two parts:

• savings system (directly pension);
• old age benefit.

Only those who have made contributions to the pension fund throughout their entire working life can count on the first type of payment.

Pension amount

The amount of pension accruals is determined:

• age of the applicant;
• work experience;
• the position held by the pensioner and his qualifications;
• amounts of contributions to pension, insurance and reserve funds;

There are no official statistics on the average pension parameter. Indirect data suggests 5.3 thousand ILS (97.573 thousand RUB or $1.44 thousand). Payments to men amount to 6.8 thousand ILS (125,188 thousand RUB), to women – 3.8 thousand ILS (69,958 thousand RUB). The difference is explained by the relatively low assessment of women’s work, as well as the shorter duration of insured work experience.

Interesting from BBQcash. A special feature of pensions in Israel is their relatively high labor income replacement rate. About 30% of Israelis receive less than 30% of their earnings during retirement. On average, the replacement parameter varies between 50-70%.

Amount of pension payments in the country

The average pension in Israel is 6,000 NIS. The amount of payment is influenced by the following aspects:

• work experience;
• age;
• employee position;
• the number of monthly contributions to the pension fund ($1,700 for military personnel).

Jews are also entitled to a one-time payment upon retirement. It is equal to the product of monthly income and years of work experience. Israelis are also exempt from the obligation to pay land tax and have benefits when paying for television and other government services.

And pensioners who do not have a personal vehicle, bank savings or an additional source of income can count on special allowances.

It is also worth mentioning that the average salary indicator is calculated monthly. Therefore, it is impossible to name the exact size of the pension and the level of its increase in Israel: changes are regularly made to this value.

Old city. Jerusalem, Israel

Additional benefits (additional payments) to pension

Additional payments are provided:

• necessary until reaching the subsistence level (in the absence of other sources of income);
• for length of service;
• for deferred pension;
• caring for those in need of outside help.

In cases where the amount of old-age pension payments is less than the subsistence level, residents of the country acquire the right to receive old-age benefits from the National Insurance Institute with an additional payment, the basic amount of which for a pensioner 70 years old and younger is 3228 ILS (59427.48 RUB) and 5102 ILS (93927.82 RUB) – for a married couple.

The largest amount of benefits with additional payment for spouses living with two minors is 7 thousand ILS (128.87 thousand RUB).

To receive bonus payments you must:

• the total income of a single pensioner or a married couple did not exceed 3228 ILS and 5102 ILS, respectively;
• the applicant was a citizen or permanent resident - when staying outside Israel, payments cannot be made for more than 72 days;
• the applicant was not: a member of agricultural communes or communities operating on a cooperative basis;
• owner of a vehicle worth more than 41 thousand ILS (754.81 thousand RUB);

Residents of Israel and Jewish settlements in Palestine who have become disabled as a result of terrorist actions can also count on social benefits.

What else can you add to your pension?

But the size of the pension is not the only thing a repatriate needs to think about. A unique reward for long-term work is a one-time payment. It is received upon retirement, and it is very easy to calculate its amount. It is enough to multiply the average salary by the length of service (at least 10 years).

In addition, an Israeli pensioner can add additional payments to his pension if he served in the Israeli army. In this state, both men and women can serve in the army. Accordingly, such additional payment is received regardless of gender. The size of the army pension depends on the age at which the person was demobilized, the period and place of service. The state pays the most to pensioners who served in IDF combat units and were participants in combat operations.

In addition, there is a payment to those who suffered and became disabled during terrorist attacks in Israel, as well as in Jewish settlements in Palestine.

Ranking of pensions in the world

Additional concern for the elderly in Israel is expressed in the fact that they pay less than others for the use of land, television channels and some other mandatory payments.

Terms and features of payments

Payments begin from the month in which the required application was submitted. Their duration is determined by compliance with the conditions for receiving them, monitored by the National Insurance Institute.

For emigrants from Russia, the following is withheld monthly from their pension:

• contributions for health insurance – 103 ILS (1896.23 thousand RUB);
• various debts from previous years, including insurance premiums;
• alimony and other periodic payments;
• taxes for which the tax agent is a pension fund.

Types of pension payments

The income of pensioners comes from two sources:

• old age benefits;
• storage part.

Benefits are paid to absolutely all residents of the country who have reached retirement age. Moreover, you don’t have to be a citizen of Israel to do this.

If a person was born and lived his life in the Middle East or moved to Israel before the age of 60 and worked there, the National Insurance Institute (Bituach Leumi) will pay him benefits. This means that a citizen can count on additional payments and increase the size of their pension several times.

All other categories of citizens receive benefits from the Ministry of Finance. It no longer provides any benefits or additional payments.

The funded part directly depends on the length of service. Please note that length of service is taken into account only for official employment. The longer a person works and contributes interest from his salary to the Pension Fund, the more savings he has for his future retirement.

Previously, it was possible to receive the entire accumulated amount once upon reaching retirement age. Now it is paid in monthly installments. If a citizen dies and does not have time to receive all the funds from the funded part, they pass to his heirs. If the savings funds have run out, the pensioner must apply to Bituah Leumi for additional payments.

If a person receives only social benefits, then as soon as he spends more than two months in another country, payments will stop. You can receive payments from the savings portion anywhere in the world.

To know all the nuances of obtaining Israeli citizenship, including those related to the pension system, consult with specialists by phone. In just one call, our experts will be able to explain all the pitfalls of the repatriation process and protect you from mistakes.

Pension in Israel for repatriates

An emigrant who manages to prove his belonging to Jewish nationality is considered a repatriate, acquiring the right to enjoy the benefits of Israel. Thus, the state provides assistance to compatriots.

Repatriates who move to Israel after reaching retirement age acquire the right to a social old-age pension, as well as pension supplements that equate their total income to the subsistence level.

The retirement age of repatriates is no different from that of native Israelis. The basic benefit is 1,535 ILS (28,259.35 RUB) for persons under 80 years of age, however, new repatriates are deprived of the opportunity to receive a one-time bonus for work experience and deductions made.

The grounds for receiving special benefits for new repatriates are as follows:

• lack of pension insurance for the applicant or one of the spouses;
• immigration over 60 years of age for persons born before June 1944, and over 62 years of age for persons born in May 1947 and after;
• having the status of a permanent resident of the country;
• availability of the required retirement age;
• lack of income in an amount exceeding a legally defined amount.

To apply for a special benefit, you must submit a special application form to the National Insurance Institute.

In addition to the pension, repatriates have the right to receive:

• allowance equal to 562 ILS (10346.42 RUB) for the heating season;
• monthly additional payment for rental housing in the amount of 500 ILS (9205.00 RUB);
• additional payment for permanent disability;
• payment for victims of the Holocaust in the amount of 3.6 thousand ILS (66.276 thousand RUB).

Currently, more than 669 thousand immigrants from the USSR live on the territory of the Jewish state (including those who immigrated from Russia, this number increases to 2 million).

Attitudes to health in Israel

Medical care in the country, on the one hand, guarantees assistance to every resident, because contributions to the health fund and insurance are mandatory. On the other hand, in medical institutions there are queues for services, and you need to pay separately for dental services.

In Israel, there is “medical tourism” for visitors to treat oncology, heart disease, bone marrow transplantation and IVF - everything is at a high level there. As well as the climate and therapy on the shores of the Dead Sea, visitors can regain their health.

The development of professional sports and sports medicine is also in the cultural life of the country.

The state pays attention to improving the health of the population and maintaining its sports spirit. It’s not for nothing that they say that life expectancy there is longer than here.

Popular sports among Israelis include:

• Cycling and cycling.
• Diving. A high percentage of licensed scuba divers has been recorded.
• Martial arts and water skiing.

The problem in sports is the recognition of specialists such as coaches.

Russian pension in Israel: how to apply for and receive

Contractual relations between the Russian Federation and Israel allow repatriates from Russia to receive a Russian pension in full. This requires:

• reach the required age in accordance with the requirements of Russian legislation;
• have the necessary insurance experience;
• have Russian citizenship (maintaining it significantly simplifies receiving benefits).

The registration procedure consists of submitting an application to a division of the Pension Fund of the Russian Federation (PFR) in person or through your representative by proxy. It is impossible to register the right to receive a Russian pension in Israel. Payments are made only in Russia to an account opened in one of its banks. Receiving remuneration is also possible through a representative by proxy.

It must be emphasized that the recipient of the benefit is annually obliged to confirm his real existence either during a personal visit to one of the branches of the Pension Fund of the Russian Federation, or to one of the diplomatic missions of the Russian Federation in Israel. In this case, an act is drawn up confirming the real existence of the applicant, which, when drawn up in Israel, is sent to the Pension Fund. The repatriate must also provide evidence of his unemployed status.

It is important to emphasize that if you officially receive a Russian pension, which is noticeably lower than the Israeli one, in Israel, you may lose the right to receive an Israeli old-age benefit. In relation to persons who emigrated from the USSR before 1992, worked on the territory of the Russian Federation and renounced Soviet citizenship, there is a rule giving the right to receive a monthly benefit from Russia equal to 750 ISL (13807.50 RUB). To apply for it, you should contact the National Insurance Institute.

Amount of minimum and average pension

In 2021, the average pension is NIS 5,300. For a single person, the basic monthly benefit is NIS 1,554, and for a married couple – NIS 2,355.

If a person is over 80 years old, then the benefit amount is 1640 shekels, and for a married couple - 2400 shekels. More detailed information can be obtained here: btl.gov.il/RussianHomePage/Benefits_ru/Vatikim_ru/Pages/shiureyHaKizva_ru.aspx.

Pension amounts upon retirement at age 67 (in shekels)

By profession

Retired judges receive the largest pension – 92,000 shekels/month. This includes all bonuses and various allowances. The monthly allowance for judges of religious courts is 40,000 shekels.

Pension for former security forces (except IDF) - about 19,000 shekels/month. Retired officials of the State Comptroller's Department receive a monthly allowance of NIS 14,900.

To understand what pension will be paid after repatriation, you need to take into account several factors.

Benefits and allowances

The benefit is a percentage of the average wage in the country, the minimum rate is 16%. Once the required age is reached, a 2% annual premium is added. If the family has minor children and an unemployed spouse without a pension, then the premium is 50%. However, the bonuses in any case do not affect the fact that the maximum old-age benefit still cannot be higher than 24% of the average Israeli salary.

This part of the pension benefit is received by male representatives who have turned 70 years old, and by the female part of the population - depending on the year of birth.

Old-age benefits can be received by Israeli citizens with government insurance. According to the law, insured persons include residents of this state born on its territory, or repatriates whose age is up to 60-62 years and who have worked in Israel for at least 5 years. Old age benefits are paid monthly.

If a Russian citizen moved to Israel without renouncing citizenship before reaching retirement age, he will be entitled to social benefits until he reaches the appropriate age and is transferred to pension subsidies.

The person applying for benefits must be located in Israel. Detailed information on the amount of the supplement is available on the website of the National Insurance Institute.

In some cases, the premium for providing a permanent residence may be paid even when it is located outside the borders of Israel.

A person receiving benefits from Bituach Leumi can travel abroad for a period of no more than 72 days, otherwise he loses the right to social benefits. If this is not a social benefit, then he can stay abroad for up to six months.

The National Insurance Institute automatically receives a message that the person has left, so there is no way to receive benefits from Bituach Leumi while living abroad. Another thing is the pension that a person has earned.

Also find out what other benefits you can get in Israel.