Salary updates, insurance contributions, and recovery pay for 2026
The National Insurance Institute published a circular regarding the changes in the payment of National Insurance and Health Insurance contributions for the year 2026. The update includes several key amounts relevant to payroll calculations, monthly reports, and the review of the organization's payroll systems.
Summary of Updated Amounts
- Maximum income for insurance contributions payment – NIS 51,910 gross per month
Average salary in the economy – 13,769 NIS per month
Sum of the reduced collection tier – 7,703 NIS
Monthly minimum wage through March 2026 – 6,247.67 NIS
Monthly minimum wage from April 2026 – 6,443.85 ILS
The determining amount for the deployment of additional salary - NIS 1,561.92
Alongside updates to National Insurance amounts, an agreement was signed between the Histadrut and the Presidency of the Business Sector to update the convalescence day rate in the private sector from NIS 418 to NIS 451.5.
As of the date of this update, the tariff increase is still subject to the signing of an extension order and its publication in the records. Until the process is completed, every employer is required to act in accordance with the binding instructions applicable to them, including collective agreements, existing extension orders, and workplace custom.
Reimbursement payments are usually made in the summer months and are calculated based on seniority, employment rate, and personal eligibility. Since National Insurance amounts also affect payroll calculations and ongoing reports, it is recommended to ensure that payroll systems are updated according to the new amounts.
