חוק הביטוח הלאומי (תיקון מס' 252 והוראת שעה), התשפ"ה–2025Law on National Insurance (Amendment No. 252 and temporary provision), 2025 · automatic translation · suggest a correction

Official summary of the law (Knesset)

As part of legislation intended to help cover the large deficits in the state budget created due to the war, it was determined that the amount of the child allowance, in all its components, will not be updated in 2025. However, the education grant paid to some families will be updated as usual. In addition, provisions that had been set out in regulations were established in legislation regarding the obligation to pay work-injury insurance contributions and maternity insurance contributions for a person undergoing vocational training or vocational rehabilitation. These payments are borne by whoever is regarded as the employer of the person undergoing such training or rehabilitation, in addition to that person's own obligation to pay insurance contributions for himself as someone who is not an employee or self-employed. Furthermore, provisions that had been set out in regulations were established in legislation regarding National Insurance contributions paid for a domestic worker, meaning someone employed by an individual not within the framework of a business or occupation, for whom the insurance contribution rate is set at a single rate of 6.25%, without division into different branches or distinction according to income level. The employer of such a worker was given the option to deduct a rate of 1% from the wages for which insurance contributions were paid. For such a worker who is not insured under senior citizens and survivors insurance, or who has reached the age entitling him to a senior citizen allowance regardless of income, or who receives a general disability allowance or a work disability allowance, reduced insurance contributions of 2% were set. As a temporary provision for 2025 and 2026, the National Insurance contributions paid for the portion of income up to 60% of the average wage were increased, and the insurance contributions for a domestic worker and the work-injury and maternity insurance contributions paid by the employer for a person undergoing vocational training or vocational rehabilitation were also increased. In exchange for this increase, the allocation from the state treasury to the National Insurance Institute will be reduced. Although the increase in insurance contributions and the reduction in the allocation were set as a temporary provision for two years only, it was determined that the Minister of Finance, in consultation with the Minister of Labor and with the approval of the Labor and Welfare Committee, may extend the arrangement to 2027 and 2028, one year at a time, with a corresponding reduction of the state allocations in those years. The increase mentioned is at a rate of 1.6% of the wage for an employee and for a self-employed person, with the increase for the various insurance branches carried out proportionally according to their relative rates. The burden of the addition to the insurance contributions for the employee under Schedule 10 of the National Insurance Law will be divided between the employer and the employee, such that the employer will bear 60% of that addition and the employee will bear 40%. For a person who is neither an employee nor self-employed, the rate of increase is 50% of the insurance contributions.

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What was said in the plenum

The bill, submitted as a two-year temporary provision under the Economic Efficiency Law, raises the National Insurance contributions paid by employees, self-employed persons and employers (including employers of domestic workers), while reducing the corresponding allocation from the state treasury to the National Insurance Institute, with the aim of reducing the budget deficit created as a result of the war. The actual debate dealt mainly not with the content of the law but with other matters: the hostage deal being formed and calls to complete it and end the war, mutual accusations regarding responsibility for 7 October and for managing the economy, and only a small portion of the speakers addressed directly the levy on the public and the manner in which the temporary provision was formulated.

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An automatic summary of the plenum transcripts: the debate on the bill at every reading it was voted on. Arguments are given as the speakers made them; this is not an assessment. The list of speakers comes from the transcript, without a model. A very long debate: every speech was shortened to the same length before summarising. Transcript of the sitting: 1

Reservations to the second reading

578 reservations were filed: proposed changes to the text the committee brought to the second and third reading.

The reservations were mainly intended to change or soften the mechanisms for updating National Insurance allowances, government funding rates, and insurance contribution rates proposed in the law, some by postponing start dates, adding conditions, reporting and oversight requirements, and others by deleting sections or changing the amounts and percentages set in the bill.

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By faction

• Yesh Atid opposition · 523 reservations · 24 members
• National Unity opposition · 29 reservations · 8 members
• Hadash–Ta'al opposition · 10 reservations · 5 members
• Labor opposition · 9 reservations · 4 members
• Yisrael Beytenu opposition · 6 reservations · 6 members
• Ra'am opposition · 5 reservations · 5 members

A joint reservation counts for every faction whose members filed it.

Asked to speak: Michal Miriam Woldiger (Religious Zionism)

Proposers and reservation numbers are extracted automatically from the committee version, and the count is checked against the numbers printed in it. The descriptions are an automatic summary. Committee version for the second and third reading (PDF)