By Amit Acco, Partner |
We often being asked about the requirements to register foreign nationals the employee with social insurance in Israel:
An employee sent to work in Israel must pay social security. The National Insurance Law applies in the State of Israel to the entire population, including foreign nationals working in the country. As a result, the employer also has to pay for National Insurance for his employees.
Prevention of Double Payment of Social Payments
The State of Israel has a treaty to prevent double social payment (National Insurance) with several countries in the world. These include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Italy, Norway, Poland, Romania, Russia, Slovakia, Sweden, Switzerland, The Netherlands, the UK, and Uruguay.
Interestingly, the most prominent country with which Israel does not have thareaty to prevent double social security is the United States.
How Does the Prevention Works?
When an employee arrives in Israel from a “Convention State for the Prevention of Double Social Security”, he can request to receive a special identification number from the National Insurance Institute and thus he can be given an annual certificate of his payments in Israel and based on this certificate he will be able to receive various social benefits in his country. That is, the practical meaning of this arrangement is that the payment is actually made in Israel, while in the country of origin this payment will be considered under the treaty in such a way that the employee will receive benefits.
An employee from a country where the convention does not apply will be forced to pay double, a fact that may be reflected in the overall budget of both the employee himself and the employer.
What Branches of Insurence is Included
Since every country signed deferent treaty with the State of Israel, each treaty include different branches of insurance which may include: Old age, Survivors, Disability, Maternity, Work injury, Children and Unemployment .