There are three types of income that determine the basis for Social Security and Health Tax payments:
1. salaried employee
2. self-employed
3. other income (not work related)
The following are exempt from payment:
1. Housewives – provided they are married to an ensured person and that they do not work outside of their household.
2. An insured person who is unemployed
and has no income and is one of the
following:
A. Prisoner or detainee being held in Jail for
a period of up to 12 months.
B. New immigrant – exemption for 12
months from that date of Aliya
C. Citizens who have reached age 18 are
exempt for up to 12 months (max) not
necessarily consecutive, provided they
enlist in the IDF before age 21.
D. Citizens who have reached age 18 and
are studying in a high school (only up to
and including 12th grade) or in a
vocational training school are exempt
during their studies and for an additional
12 months afterwards (see C above) This
exemption will always start between
ages 18-21 and doesn’t start after
discharge from army service onwards.
E. Prisoner or detainee being held in Jail for
a period of more than 12 months, even if
they have income.
F. A soldier in compulsory army service who
is unemployed (neither self-employed or
salaried)
Source: Bituach Leumi website (www.btl.gov.il)
Moshe Egel-Tal, CSPP
Founder and CEO, Israpay "making payroll simple"
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Email: mo***********@***il.com
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