Processes related by the National Insurance Institute

The Israel National Insurance Institute, also known as Bituach Leumi, is a government agency responsible for the insurance and social welfare of citizens. The main function of the Institute is to assign pensions and benefits to citizens in accordance with the Social Security Law.

“Benefit” under the Law is any financial payment or concession provided by the state to individuals who are in a difficult life situation.

The National Insurance Institute assigns most of the social benefits provided by the law. This list is closed.

Benefits are paid in the following cases:

• maternity benefit;
• child care benefit;
• hospitalization benefits for women in childbirth;
• pregnancy preservation benefit;
• child benefit;
• benefit to foster parents and adoption leave payment;
• work injury benefit;
• work disability benefit;
• disability benefit;
• unemployment benefit;
• employee benefit in case of bankruptcy and liquidation of the enterprise;
• benefit for a disabled child;
• old age benefit;
• benefit to victims of hostilities.

The Social Security Act also sets a time limit for applying to the National Insurance Institute for benefits. From the moment of the event that is the basis for the assignment of benefits, no more than twelve months should pass. However, clear rules and procedures for applying may vary from case to case. After considering an application, a decision is made whether the benefit will be granted and the amount of the benefit.

It is important to understand that, at the request of an applicant, the application is submitted to the committee for consideration, which, in turn, before making a decision on the benefit and its amount, may issue a referral for an additional medical examination.

It should be also noted that in cases of applying for an employment injury benefit or disability benefit, the final amount of the benefit depends on the percentage of disability, which is determined by the medical board of the National Insurance Institute. In other words, the higher the percentage that is determined for you, the higher the allowance is assigned.

In order to receive disability benefits, an applicant must prove that the percentage of his disability exceeds 60%, and if there are several medical problems – at least 40%, provided that at least 25% disability was established for one of these problems.

If an applicant succeeds in proving one of these conditions, their claim for the assignment of benefits will be accepted for further consideration.

Here it is necessary to note that it is very important to ask for help of a qualified lawyer who understands the procedures carried out by the National Insurance Institute in time, since setting the percentage of medical disability is decisive for determining the amount of the benefit.

The National Insurance Institute plays an important role in providing social protection and support to citizens, however, despite this fact, the process is often complicated and difficult to navigate due to the increased cases of fraud and deceit while filing applications. Therefore, it is obvious that an experienced lawyer helps to simplify the process and contributes to a better application.

When applying for work disability benefit, the calculation is different. In the case of a 100% degree of disability determination, it will be equal to the daily compensation that is paid in case of a workplace injury multiplied by 30. As of 01/01/2023, the maximum amount of the monthly benefit is 36,049 shekels. As a rule, the amount of the benefit is updated on January 1 of each year, taking into account the consumer price index.

The basis for the assignment of a monthly benefit to a disabled worker is the establishment of more than 9% disability. In this case, the amount of the benefit is calculated proportionally, taking into account the maximum amount of the benefit, depending on the percentage of his disability. For example, a disabled worker with a 50% degree of disability will receive half of the total amount of the benefit that he would receive with a 100% disability.

In addition to the benefit, an applicant may be assigned with a subsidy for disabled workers. The amount of the subsidy is determined by multiplying the monthly benefit by 43. In case the recipient’s health deteriorates and a disability of 20% or more is established, they will be entitled to a monthly allowance. In this case, the remaining amount of the subsidy will be deducted from the benefit. 

If a work injury occurred after April 1, 2006 and the application for an occupational disease was submitted after that date, the type of payment assigned to the applicant, whether benefit or lump sum payment, will depend on the type of disability.

Monthly benefit is assigned in the following cases:

• the percentage of temporary disability ranges from 9% to 100%;
• the percentage of lifelong (permanent) disability ranges from 20% to 100%.

If a disabled worker has a life-long disability from 9% to 19.99%, they will be entitled to a one-time subsidy.

A disabled worker with an established lifetime disability of up to 9% is not entitled to benefits.

As a general rule, all payments are credited to the bank account of the insured.

Thus, in order to guarantee all your rights, it is obvious that it would be better to contact an experienced lawyer who can accurately formulate your requirements and achieve the maximum payment.