Are there social contributions in Israel?

AI Answer
Yes, employees in Israel pay social contributions, totaling approximately 15.5% on top of their income tax. These contributions are split between National Insurance (Bituach Leumi) and Health Tax (Mas Briut), funding essential services like healthcare, retirement pensions, unemployment benefits, and other social welfare programs. For National Insurance, you'll pay about 7% of your salary. This covers things like old-age pensions, disability, and maternity benefits. The Health Tax is around 3.1% for the first NIS 6,331 of your monthly income and then 5% on income above that threshold, up to a maximum of NIS 48,420 per month (as of 2024). Combined, these contributions significantly support Israel's social safety net. For example, if you earn NIS 15,000 a month, you'd pay roughly NIS 1,050 for National Insurance and about NIS 540 for Health Tax, totaling NIS 1,590 in social contributions. Factor these mandatory contributions into your budget when considering a move to Israel. They’re a substantial part of your gross-to-net salary calculation.