Jan 2014 mandatory pension update

Effective on January 2014’s payroll (which is paid at the begining of February) the rates for mandatory pension plans has been updated, as follows:

employee – 5.5% savings
employer – 6% savings + 6% severance pay
Total 17.5%

This is mandatory for all employers in Israel, except those who have pension plans with more favorable terms.

About the Author

Moshe is a certifed, senior payroll professional with over 25 years experience in all aspects of Israeli payroll and labor laws. An avid blogger, lecturer and author of several English language publications, active in bringing awarness to Anglos on employee's rights and labor laws.