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Israel National Insurance (Bituach Leumi) Calculator 2025

Calculate your Bituach Leumi (NII) and health tax (Mas Briut) contributions in Israel 2025. Employee share: NII 0.4%/7%, health 3.1%/5% up to annual ceiling. Source: NII btl.gov.il.

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Calculate your Israeli Bituach Leumi and health tax contributions for 2025.

Total NII + health contributions

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Employee share only (Bituach Leumi + Mas Briut)

Bituach Leumi (National Insurance)

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Health tax (Mas Briut)

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Monthly total

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Your breakdown

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How Bituach Leumi contributions are structured

Israeli National Insurance contributions follow a two-tier structure based on two annual thresholds. The lower threshold for 2025 is approximately 90,264 ILS per year. Gross income up to this threshold is taxed at the reduced employee rate of 0.4% for Bituach Leumi and 3.1% for the health tax. Above the lower threshold and up to the annual ceiling of 540,900 ILS, the rates rise to 7% and 5% respectively. Income beyond the ceiling attracts no further employee contributions. This design means that low-wage workers pay a very small amount in social contributions, while middle and upper-middle earners contribute more, and very high earners hit an absolute cap.

What Bituach Leumi contributions fund

The National Insurance Institute uses Bituach Leumi contributions to fund a broad set of social benefits. These include old-age pensions and survivors benefits for widows and orphans, maternity grants and birth allowances, disability pensions for those unable to work, unemployment benefit payments administered in coordination with the Employment Service, child allowances paid monthly per child, and income support for families below the poverty threshold. The health tax component (Mas Briut) is ring-fenced and transferred to the four public Kupot Holim, which provide free or subsidized medical care, hospitalization, and prescription drugs to every resident enrolled under the National Health Insurance Law. Both levies are mandatory regardless of whether an individual actually claims benefits.

Employer contributions vs. employee contributions

The rates shown in this calculator cover the employee share only. Employers pay a separate and higher employer contribution on the same gross salary, using a parallel two-tier rate structure based on the same lower threshold and ceiling. These employer costs are a labor cost for the business but do not reduce the employee take-home pay directly. When negotiating a job offer in Israel, it can be useful to ask whether the quoted salary figure is the employee gross (bruto) or the total employer cost (cost to company), since the two figures differ by a meaningful percentage once employer NII is added.

Self-employed Bituach Leumi rates and differences

Self-employed individuals (osek atzmai and osek murshe) calculate their Bituach Leumi contributions differently from employees. They pay a combined rate that covers both the employee and a portion of the employer share, so the headline rates are higher than those shown here for employees. The self-employed contribution base is net business income after deductible business expenses rather than gross salary. Self-employed workers file an annual NII return alongside their income tax return and may make advance payments during the year to avoid large year-end balances. The NII offers installment plans for large arrears. This calculator applies only to employees and does not model the self-employed contribution schedule.

Frequently asked questions

What is Bituach Leumi and who pays it in Israel?
Bituach Leumi is the Israeli National Insurance Institute (NII), the state social security agency that funds maternity grants, disability pensions, unemployment benefits, old-age pensions, and survivors benefits. Almost every Israeli resident is required to pay National Insurance contributions. Employees pay their share through employer payroll withholding each month, and self-employed individuals file and pay contributions directly to the NII. The contributions are separate from income tax and are calculated on gross income before income tax deductions. Employers also pay a parallel employer contribution at higher rates on top of the employee portion, but the employer share does not reduce take-home pay directly. Contribution rates and the lower threshold are updated by the NII each year based on the average wage index.
What are the 2025 Bituach Leumi rates and contribution ceiling?
For the 2025 tax year, the employee Bituach Leumi rate is 0.4% on income up to the lower threshold of approximately 90,264 ILS per year (around 7,522 ILS per month). On income above that threshold and up to the NII ceiling of approximately 540,900 ILS per year (around 45,075 ILS per month), the rate rises to 7%. Income above the ceiling is fully exempt from employee NII contributions. These two-tier rates reflect the law’s intention to keep contributions affordable for lower-paid workers while ensuring a meaningful contribution from higher earners. The ceiling means that very high earners pay no additional NII once their salary passes the ceiling, so the system has a flat absolute maximum contribution regardless of salary above that level.
How is the health tax (Mas Briut) different from Bituach Leumi?
The health tax (Mas Briut) is a separate compulsory levy collected alongside Bituach Leumi contributions, but it funds a different purpose: it finances the four public health maintenance organizations (Kupot Holim) that provide universal healthcare coverage to Israeli residents under the National Health Insurance Law. The rates for 2025 are 3.1% on income below the NII lower threshold and 5% on income between the threshold and the ceiling. The ceiling is identical to the Bituach Leumi ceiling. Crucially, Mas Briut is not deductible for Israeli income tax purposes. Bituach Leumi contributions, however, are partially deductible: 52% of the employee Bituach Leumi contribution can be deducted when calculating taxable income for Mas Hachnasa (income tax). This distinction matters for accurate net salary calculations.
Are Bituach Leumi contributions deductible from Israeli income tax?
Yes, partially. Under Section 47A of the Income Tax Ordinance, Israeli employees may deduct 52% of their employee Bituach Leumi contributions when computing taxable income for Mas Hachnasa (income tax). For example, if your annual Bituach Leumi contribution is 10,000 ILS, you can reduce your taxable income by 5,200 ILS before applying the income tax brackets. The remaining 48% of the Bituach Leumi contribution and the entire health tax (Mas Briut) are not deductible. This partial deduction was designed to partially offset the burden of paying both social contributions and income tax on the same gross income. The deduction is applied automatically by employers via payroll software and is reflected in the monthly tax withholding (Nikui Mas) calculation.

Related calculators

Sources

  1. National Insurance and Health Tax Rates 2025 - Bituach Leumi (NII), National Insurance Institute of Israel (Bituach Leumi) btl.gov.il
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