Coordinating National Insurance Deductions for Salaried Employees

Step-by-Step Instructions

1. 1

   In brief

   When salaried employees receive wages or an early pension from more than one employer or pension payer, the secondary employer or pension payer deducts National Insurance (Bituach Leumi) and health insurance contributions at the full rate on the entire amount they pay — up to the maximum income ceiling for insurance contributions.

   • In the situations described below, this can result in higher deductions than are actually required.
   • To prevent over-deduction, salaried employees and early-pension recipients with multiple employers or pension payers can give the secondary employer or pension payer an approval for coordination of insurance contributions (teum dmei bituach).
2. 2

   Who is this relevant for?

   You may request a coordination of National Insurance deductions if you are:

   • A salaried employee working at two or more places of work.
   • Someone who receives an early pension and also works as a salaried employee at one or more workplaces.
   • Someone who receives an early pension from two or more sources.

   This applies provided that at least one of the following conditions is met:

   1. Your monthly income from your primary employer or pension payer is less than ₪7,703 (as of 2026). Income up to this amount is subject to the reduced deduction rate, so deducting at the full rate from a secondary employer on the amount that brings you up to ₪7,703 is an over-deduction.
   2. Your total monthly income from all employers/pension payers exceeds ₪51,910 (the maximum income ceiling for insurance contributions, as of 2026).

   For average wage data and the maximum income ceiling for insurance contributions in previous years, see the Bituach Leumi website.

   Also:

   • Salaried employees who served in the military reserves and submitted a personal claim for payment for reserve service are required to perform a coordination of National Insurance deductions, regardless of the level of their income.
   • Self-employed workers who have multiple income sources in addition to their business income can perform a coordination only for non-business income.
     • For business income, other reliefs are available, such as reducing the amount of advance payments (makdamot) made to Bituach Leumi during the year.
3. 3

   Primary vs secondary employer — how it's determined

   When you work for multiple employers or receive an early pension from more than one source, one is designated the primary and the other(s) secondary. The distinction affects how Bituach Leumi and income tax are withheld.

   Who is the primary employer/payer:

   • Usually the employer where you earn the highest income.
   • If you draw salary from an employer AND an early pension, the salaried workplace is typically primary.
   • If you receive pensions from multiple sources, the highest-value pension is usually primary.
   • You can nominate a specific employer as primary by submitting Form 101 to them at the start of the tax year.

   What each does differently:

   • The primary employer/payer applies your tax credit points and the reduced Bituach Leumi rate on the first ₪7,703 of monthly income (2026 threshold).
   • Secondary employers/payers withhold Bituach Leumi at the full rate on the entire amount they pay you — unless you provide them with a coordination approval (teum dmei bituach).

   To change the designation during the year, submit a new Form 101 to the employer you want to designate as primary.

4. 4

   Employees and pension recipients whose primary monthly income is below ₪7,703 (as of 2026)

   At the start of every tax year, submit a Declaration of Income with the Primary Employer form to your secondary employer or pension payer — in addition to the employee declaration to the secondary employer on Form 101.

   • The secondary employer will generate, via their payroll software, an automatic approval for deduction of National Insurance and health insurance at the reduced rate on the difference between ₪7,703 and the amount of income you receive from your primary employer. On the remainder of your income from the secondary employer (if any), contributions will be deducted at the full rate.
   • New employees or pension recipients submit the form from the day they start work or start receiving the pension, and then again at the start of each tax year.
   • Employees who already hold a coordination approval for the coming period submit a new form when their current approval expires, and then again at the start of each tax year. The secondary employer or pension payer will issue an approval valid until the end of the current tax year (December of that year).

   Another way to obtain the approval is through the Bituach Leumi website. You will need to have your most recent pay slips from each employer or early-pension payer to hand.

5. 5

   Employees and pension recipients whose total monthly income exceeds ₪51,910 (as of 2026)

   To obtain a coordination approval:

   1. Fill in the Request for Coordination of Insurance Contributions form.
   2. Attach Form 100 from each employer, with details of income from all sources in the last 12 months.
   3. Submit the forms to the employers' department at the Bituach Leumi branch closest to your place of residence.
6. 6

   Employees working at two workplaces in different months of the same year

   National Insurance contributions are calculated on a monthly basis, not an annual basis (unlike income tax).

   If you work at two workplaces in the same year but only at one workplace in any given month:

   • You must notify the secondary employer every month that you actually work for them of the amount of your income from your primary workplace in that month (i.e. ₪0).
   • The secondary employer will deduct reduced health insurance contributions for that month.
7. 7

   Employees who submitted a personal claim for payment for reserve service

   If you served in the military reserves and submitted a personal claim to Bituach Leumi for payment for your reserve service, you are required to perform a coordination of National Insurance deductions — regardless of the level of your income or the amount of reserve service pay you received.

   For more information, see the Bituach Leumi guide on National Insurance deductions for reserve soldiers.

8. 8

   Good to know

   • It is important to perform the coordination during the tax year. Employees or early-pension recipients who had higher contributions deducted than required can apply for a refund of National Insurance and health insurance contributions.

   Note: The National Insurance Institute will not proactively perform a coordination or issue a refund to insured persons who have not submitted a request to do so.

9. 9

   Assisting bodies

   Government hotlines:

   Organisation	Phone
   Israel Tax Authority (Rashut HaMisim)	*4954
   Property Tax (Mas Rechush)	*4954
   Shayal citizen advisory service	118
   Central Government Response Centre	1299