{"id":8024,"date":"2017-02-26T13:13:39","date_gmt":"2017-02-26T13:13:39","guid":{"rendered":"https:\/\/aboulafia.co.il\/?p=8024"},"modified":"2025-09-10T13:19:59","modified_gmt":"2025-09-10T13:19:59","slug":"what-israels-new-self-employed-pension-plan-requirement-means-for-freelancers","status":"publish","type":"post","link":"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/what-israels-new-self-employed-pension-plan-requirement-means-for-freelancers\/","title":{"rendered":"What Israel\u2019s New Self-Employed Pension Plan Requirement Means for Freelancers"},"content":{"rendered":"<p dir=\"ltr\" style=\"text-align: left;\">As part of the 2017-18 Budget, the government required that, as of the 2017 tax year, those who are self-employed are required to pay into an Israeli-recognized pension plan.<\/p>\n<p dir=\"ltr\" style=\"text-align: left;\">The amounts required by law are as follows (for 2017):<\/p>\n<table class=\"alignleft\" dir=\"ltr\" border=\"1\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\" width=\"114\"><strong>Monthly\u00a0 profit (NIS)<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"114\"><strong>Yearly profit (NIS)<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"114\"><strong>Percentage contribution required<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"114\"><strong>Max. required monthly contribution\u00a0(NIS)<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"114\"><strong>Max. required yearly contribution (NIS)<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"114\">On portion from 0 \u2013 4,836 NIS<\/td>\n<td width=\"114\">On portion from 0 \u2013 58,038 NIS<\/td>\n<td style=\"text-align: center;\" width=\"114\">4.45%<\/td>\n<td style=\"text-align: center;\" width=\"114\">215<\/td>\n<td style=\"text-align: center;\" width=\"114\">2,583<\/td>\n<\/tr>\n<tr>\n<td width=\"114\">On portion from 4,836 \u2013 9,673 NIS<\/td>\n<td width=\"114\">On portion from 58,038 \u2013 116,076 NIS<\/td>\n<td style=\"text-align: center;\" width=\"114\">12.55%<\/td>\n<td style=\"text-align: center;\" width=\"114\">607<\/td>\n<td style=\"text-align: center;\" width=\"114\">7,284<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"114\">On portion above 9,673 NIS<\/td>\n<td style=\"text-align: center;\" width=\"114\">On portion above 116,076 NIS<\/td>\n<td style=\"text-align: center;\" width=\"114\">0%<\/td>\n<td style=\"text-align: center;\" width=\"114\">0<\/td>\n<td style=\"text-align: center;\" width=\"114\">0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p dir=\"ltr\">\n<p dir=\"ltr\">\n<p dir=\"ltr\">\n<p dir=\"ltr\">\n<p dir=\"ltr\">\n<p dir=\"ltr\">\n<p dir=\"ltr\">\n<p dir=\"ltr\">\n<p dir=\"ltr\">\n<p dir=\"ltr\" style=\"text-align: left;\">For example:<\/p>\n<ul dir=\"ltr\" style=\"text-align: left;\">\n<li>A freelancer whose annual profit is 45,000 NIS must contribute at least 2,003 NIS into a pension plan (45,000 X 4.45%)<\/li>\n<li>A freelancer whose annual profit is 90,000 NIS must contribute at least 6,594 NIS into a pension plan (58,038 X 4.45% + 31,962 X 12.55%)<\/li>\n<li>A freelancer whose annual profit is 116,076 NIS or above must contribute at least 9,866 NIS into a pension plan (58,038 X 4.45% + 58,038 X 12.55%)<\/li>\n<\/ul>\n<p dir=\"ltr\" style=\"text-align: left;\"><em>Note: Freelancers can contribute more than the required amounts.<\/em><\/p>\n<p dir=\"ltr\" style=\"text-align: left;\">A freelancer who is also an employee of a company and receives benefits, can deduct the sum of contributions by themselves and their employer from their salary from the above amounts.<\/p>\n<p dir=\"ltr\" style=\"text-align: left;\">For example, if a freelancer owes 6,500 NIS total, and 4,500 NIS has been paid in from their payroll deductions, their remaining contribution is 2,000 NIS. Contributions are due by December 31, 2017.<\/p>\n<h4 dir=\"ltr\" style=\"text-align: left;\">Who is exempt<\/h4>\n<ul dir=\"ltr\" style=\"text-align: left;\">\n<li>Anyone born in 1961 or earlier (i.e. aged 55+ when the law came into effect)<\/li>\n<li>Anyone aged 60 or over at the end of the tax year<\/li>\n<li>Anyone aged 21 or under at the end of the tax year<\/li>\n<li>Anyone who opened their VAT file within six months of the end of the tax year<\/li>\n<\/ul>\n<h4 dir=\"ltr\" style=\"text-align: left;\">What happens if I don\u2019t contribute?<\/h4>\n<p dir=\"ltr\" style=\"text-align: left;\">The tax authority will calculate the required contribution after you file your tax return. A letter will be sent out if the contributions made were too little, and further non-compliance will lead to a NIS 500 fine.<\/p>\n<p dir=\"ltr\" style=\"text-align: left;\">For more information or assistance with self-employment\u00a0issues,\u00a0<a href=\"http:\/\/www.aboulafia.co.il\/contact-us\/\">contact us<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As part of the 2017-18 Budget, the government required that, as of the 2017 tax year, those who are self-employed are required to pay into an Israeli-recognized pension plan. The amounts required by law are as follows (for 2017): Monthly\u00a0 profit (NIS) Yearly profit (NIS) Percentage contribution required Max. required monthly contribution\u00a0(NIS) Max. required yearly [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":8075,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[200,205,216,253],"tags":[],"class_list":["post-8024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-israeli-taxation-en","category-individual-taxation-en","category-individual-taxation-3-en","category-binyamin-radomsky-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Israel\u2019s New Self-Employed Pension Plan Requirement Means for Freelancers - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/what-israels-new-self-employed-pension-plan-requirement-means-for-freelancers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Israel\u2019s New Self-Employed Pension Plan Requirement Means for Freelancers - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df\" \/>\n<meta property=\"og:description\" content=\"As part of the 2017-18 Budget, the government required that, as of the 2017 tax year, those who are self-employed are required to pay into an Israeli-recognized pension plan. The amounts required by law are as follows (for 2017): Monthly\u00a0 profit (NIS) Yearly profit (NIS) Percentage contribution required Max. required monthly contribution\u00a0(NIS) Max. required yearly [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/what-israels-new-self-employed-pension-plan-requirement-means-for-freelancers\/\" \/>\n<meta property=\"og:site_name\" content=\"\u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df\" \/>\n<meta property=\"article:published_time\" content=\"2017-02-26T13:13:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-10T13:19:59+00:00\" \/>\n<meta name=\"author\" content=\"Rachel Levin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rachel Levin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/what-israels-new-self-employed-pension-plan-requirement-means-for-freelancers\/\",\"url\":\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/what-israels-new-self-employed-pension-plan-requirement-means-for-freelancers\/\",\"name\":\"What Israel\u2019s New Self-Employed Pension Plan Requirement Means for Freelancers - 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