Knesset committee approves bill that limits hike in National Insurance fees

Knesset committee approves bill that limits hike in National Insurance fees

As part of the process of passing the 2025 state budget, the Knesset Labor and Welfare Committee approves parts of the Economic Efficiency Bill for its second and third readings in the plenum, limiting planned increases in National Insurance Institute payments to a period of two years.

National Insurance contributions, which include health tax payments, are set to be increased on January 1, with the expectation of adding costs of between NIS 1,000 to NIS 2,000 ($275-$550) a year to an average household. National Insurance contributions are often described as a form of tax, as they are collected by the state to finance public goods.

In a statement, committee chairman MK Yisrael Eichler (United Torah Judaism) says that National Insurance contributions are “not income tax” and that “there is no justification for severely and permanently harming vulnerable workers.”

According to the bill as approved by the committee, employees earning up to NIS 7,522 ($2,058) will be subject to monthly payments equal to 1.6 percent of their salaries — 40% of which will come out of their earnings and 60% of which will be paid by their employers.

The government will be allowed to extend the higher rate twice for a period of a year, subject to committee approval.

More from today’s Liveblog:


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