Israel Unemployment Benefits: Eligibility, Rates, and Rules
The National Insurance Institute outlines crucial conditions, payment structures, and calculation methods for unemployment benefits in Israel, detailing eligibility, required documents, and daily rates.
Losing a job can create a period of economic uncertainty, but for salaried employees who meet the legal requirements, the National Insurance Institute (Bituach Leumi) offers unemployment benefits. These benefits are designed to provide a financial safety net while searching for a new job, distributed based on data transferred from the National Insurance Institute and the Employment Service.
To receive payment, the employee must register with the Employment Service, report on scheduled dates, and submit an unemployment claim. The Employment Service transfers the number of recorded unemployment days to the National Insurance Institute each month, forming the basis for payments.
Five Key Eligibility Conditions
The National Insurance Institute outlines five main eligibility criteria:
-
Residency: The applicant must be an Israeli resident or a temporary resident holding a permanent or temporary residency permit.
-
Age: Eligibility applies to individuals aged 20 to 67, though under certain conditions, those under 20 may also qualify.
-
Termination of Employment: Employees who were dismissed, resigned, or placed on unpaid leave by their employer may be eligible. However, the reason for termination affects the start date of payments.
-
Employment Service Reporting: Applicants must register and report to the Employment Service within 14 days of online registration to avoid affecting their eligibility.
-
Qualifying Period: At least 12 months of salaried employment within the 18 months preceding the first registration are required. Months do not need to be consecutive or with the same employer.
How Much and How Long Are Benefits Paid?
The maximum number of days for which unemployment benefits can be paid is determined by the unemployed person's age and number of dependents. For instance, individuals aged 45 and older are entitled to a quota of up to 175 unemployment days.
Daily unemployment benefit amounts are calculated based on age and taxable income from the six full months preceding the first reporting date. For example, a gross salary of 10,000 NIS yields 257.81 NIS per day, totaling 6,445 NIS for 25 days. A gross salary of 20,000 NIS provides 380.06 NIS per day, or 9,502 NIS for 25 days. The maximum daily rate reaches 550.76 NIS for a gross salary of 34,225 NIS.
Ceilings and Special Cases
Maximum daily unemployment benefits for the first 125 days stand at 550.76 NIS. From the 126th payment day onward, the maximum daily rate drops to 367.17 NIS.
Resigning without justified cause results in a 90-day waiting period before payments begin, whereas justified resignations—such as material changes in working conditions, health issues, or workplace harassment—allow payments from day one. For unpaid leave (Halat), employers must initiate it, and the leave must last at least 30 days before benefits apply.
