Compulsory pension in Israel.
(Hova’s pension for all)
According to this agreement, actually having the force of law, every Israeli employer is obliged to provide accumulative pension insurance (pension of Makif) to all people working for him and monthly transfer of deductions to the pension fund (gemel, Keren pension, mivtachim, bitual menalim) chosen by the employee.
You can find out more about the compulsory pension in Israel in the brochure “Pensions for each employee by right” issued by Histadrut (Histadrut Hadadash). For your convenience, we also enclose the full text of the Trade Union Agreement on Compulsory Pension Insurance in Israel in Hebrew.
It is important to emphasize that compulsory pension insurance existed in Israel until 2008, however, it mainly extended to manufacturing enterprises (factories, factories, workshops) and included only basic pension savings (Yesod pension).
We should not also confuse the new mandatory pension insurance (retired Hova) with the old-age benefit from the leumi (kitsvat zikna) bills, often mistakenly referred to as “pension”, but in fact they are not. The old-age allowance (kitsbat zekna) is paid according to the National Insurance Law (Hok ha-Bituah ha-Leumi) and, unlike the new mandatory pension, does not depend on the size of the salary before retirement.
Do you want to ask a lawyer or make an appointment for a consultation?
Do you like our site? Do you have any comments or suggestions? Write to the webmaster about this!