Quarterly Tip
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.