Social Security Number In Israel: Explained
Unlocking the mysteries of obtaining a social security number in Israel can feel like cracking a secret code. But fear not, fellow expats! We’ve got you covered!
In this article, we delve into the ins and outs of navigating the bureaucratic maze to secure your Israeli social security number smoothly and stress-free.
Let’s dive in!
What Is The Social Security System In Israel?
The core of the Israeli welfare state is its social security system, which includes a wide range of national insurance schemes and a range of non-contributory income maintenance programs.
The entire system is maintained by the National Insurance Institute, an autonomous state agency operating under the supervision of the Minister of Welfare.
The national insurance schemes developed since the 1950s became the major instrument ensuring the social security of large portions of the population.
They consist of a national health insurance program, a few other small social insurance-based programs, maternity, unemployment, work accident, and general disability insurance, as well as old age and survivors insurance.
Demographic changes, such as the growth of the elderly population, the size of the children’s population, and the composition of the immigrant groups, have been critical factors in the growth of the system.
Old Age And Survivors Insurance
The biggest national insurance program is old age and survivors insurance. This program pays out close to 40% of all national insurance payouts.
With a few notable exceptions, this program covers all Israeli citizens, who are required to pay premiums until they retire.
For males and women, respectively, the absolute entitlement age to an old age pension is 70 and 67.
Women’s absolute entitlement age was 65 before the most recent retrenchment measures.
When their income falls below a certain level, males between the ages of 67 and 70 and women starting at 64 are eligible for a pension subject to an income test.
Children’s Allowances
Children’s allowances are the second largest program in Israel’s social security system, making up almost 20% of all benefit payouts.
By the late 1990s, the program’s coverage had become universal, meaning that all Israeli children under the age of 18 were eligible for payments.
It was made up of a single, standard plan that was completely included in the direct tax structure.
The program was designed to function as a tax credit for families whose income exceeded the tax threshold and as a “negative income tax” for families whose income fell below the tax threshold.
In actuality, the program was based on a credit point system.
The allowances were the dominant and almost only factor taking into account family size in the direct tax system.
They were linked to the consumer price index and raised accordingly in January of every year.
The value of a credit point in 2000 was equal to 2.5 percent of the average wage.
Unemployment Insurance
Unemployment insurance was established only after a prolonged debate in 1973.
Despite the important task of the scheme in providing an alternative income to the involuntarily unemployed, there was strong opposition to its introduction, which came, perhaps paradoxically, from the Israeli labour movement.
With the growth of unemployment in the 1990s various amendments were introduced to the scheme to make it more difficult to receive unemployment benefits.
These policies aimed to strengthen labour market discipline among the working population and to increase the flexibility of the job market.
As a result, there was a significant reduction in the scheme’s capability to provide adequate protection for the unemployed.
Long-Term Care Program
In 1988, the long-term care program was put into action. All residents who are enrolled in the old age insurance program are covered by the program.
Only the elderly are eligible for long-term care services. These are given to senior citizens who are mostly or reliant on assistance from others to carry out necessary daily duties.
The program’s entitlement to long-term care is subject to income and dependency requirements.
Since its launch, the program’s expenditures and beneficiary count have increased significantly.
The package of services provided includes personal care at the home of the elderly person or in a daycare center, housekeeping help, supply of absorbent materials, laundry services, and the installation of distress alarms.
The services are provided by non-profit as well as commercial service organisations licensed for this purpose.
The non-contributory income maintenance programs include the safety-net income support scheme, benefits to the victims of hostile actions, and a range of other minor benefit programs.
Conclusion
As we wrap up, armed with this newfound knowledge, you’re ready to tackle the social security number quest in Israel like a seasoned pro.
Stay tuned for more practical tips and witty insights, and may your Israeli adventures be filled with smooth bureaucracy and minimal paperwork.
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