PENSION IN ISRAEL: DOES YOUR EMPLOYER CONTRIBUTE?

👴 PENSION IN ISRAEL: DOES YOUR EMPLOYER CONTRIBUTE?

In Israel, pensions are formed from three sources:

1. Bituach Leumi (state pension)

Basic pension that everyone receives.

2. Pension contributions from the employer

This is the main part of your future pension. The employer MUST contribute to the pension fund.

3. Personal savings and additional contributions that you make yourself (optional).

By law, the employer must contribute to your pension fund:

→ 6% is withheld from your salary and transferred to the pension (employee contribution)

→ 6.5% additional payment by the employer (employer contribution)

→ 6% - transferred by the employer to pitzuim (פיצויים)

Total: 18.5% of your salary should go to the pension fund every month.

HOW TO CHECK THAT THE PAYMENTS ARE GOING IN

Look at the payslip

There should be lines there:

→ פנסיה (pension)

→ פיצויים (compensation)

Go to the personal account of the pension fund, which is recorded in the personal account.

Important: the lack of pension contributions is a gross violation.