National Insurance Adjustment
We are all familiar with the term tax adjustment. This term is relevant for anyone who has two or more different workplaces and therefore has to conduct a tax adjustment.
However, there is an additional term that not many people are familiar with, national insurance adjustment.
Who is entitled to a national insurance adjustment?
- Someone who works for 2 or more employers
- Someone who receives an early pension and additionally works as an employee in one or more workplaces
- Someone who receives an early pension from two or more workplaces
There are two conditions for checking whether or not one is entitled:
- A monthly income from the main employer or payer of the pension which is lower than 60% of the average wage in the workforce – meaning 6,164 NIS, as of January 1, 2019
- A monthly income from both employers or an income higher than the maximum income from national insurance, meaning over a gross of 43,890 NIS per month – as of January 1, 2019.
How It Is Done?
- You may submit a request for a retroactive return of national insurance fees of up to 7 years via the National Insurance Institute’s website. Make sure you have the deductions file number for the employer and/or pension payer.
- You may contact the National Insurance Institute branch closest to your place of residence with a Form 100 from your employer and/or pension payer.
A notification of the calculation of your return will be sent directly to your home by mail.
In order to prevent excess deduction in the future, it is possible to conduct a national insurance adjustment and deliver it to the employer and/or pension payer.