Israel: Bituach Leumi — How Not to Accumulate Debt

Introduction

What is Bituach Leumi and Why is It Important?

The National Insurance Institute of Israel, known as Bituach Leumi, plays a crucial role in providing social protection to the country’s citizens. Its primary mission is to offer means of livelihood to those who are unable to support themselves independently, as well as to reduce economic inequality within society.

Mistakes of Immigrants That Lead to Debt

Many new immigrants encounter difficulties in understanding their obligations to Bituach Leumi, which often results in the accumulation of debt and other issues. A lack of information and awareness about the rules and procedures can lead to financial hardships and the loss of eligibility for certain benefits.

Who Should Pay Special Attention?

This article is designed to help new immigrants navigate their obligations and rights related to Bituach Leumi. Through personal experience, we will explore the key aspects of interacting with this organization, enabling you to avoid common mistakes and ensure stable social protection in Israel.

Registration with Bituach Leumi

Registering with Bituach Leumi is a crucial step for new immigrants, providing access to Israel’s social and medical services. Below are the main stages and recommendations for registration.

When and How Should You Register?

It is recommended to register with the national insurance system immediately upon arrival in Israel. The registration process includes the following steps:

  1. At Ben Gurion Airport: When processing your documents with a representative from the Ministry of Aliyah and Integration (Misrad Klita), you can choose one of the health funds (Clalit, Maccabi, Meuhedet, or Leumit) for medical services. It is advisable to familiarize yourself with the information about each of them in advance to make an informed choice.

  2. Through the Postal Bank (Bank HaDoar): If you did not register with a health fund at the airport, you can do so at any branch of the postal bank. You must have your repatriation certificate (Teudat Oleh) and your identification card (Teudat Zehut) with you. Please note that this procedure is fee-based.

✅ Approximately three weeks after repatriation, you can (and should as soon as possible!) register online on the Bituach Leumi website (https://www.btl.gov.il/). This requires completing the identification process and creating a personal account. This method is free and convenient for those who prefer digital services.

Creating an Account on the Bituach Leumi Website

Having a personal account on the Bituach Leumi website allows you to conveniently manage your data, track accruals, and submit various applications online. To create an account, follow these steps:

  1. Obtaining a Personal Access Code:

    • Via Email: Visit the official Bituach Leumi website and enter your email address. A link for identification will be sent to you. After successful identification, you will receive a temporary code and password to access your personal page.
    • In Person at a Branch: Visit the nearest Bituach Leumi branch. Obtain your user code and access password directly from a staff member.
  2. Registering on the Website:

    • Go to the official Bituach Leumi website and select the registration option.
    • Enter the received user code and password.
    • Follow the on-screen instructions to complete the registration process.

After completing the registration, you will gain access to your personal page, where you can manage your data, submit applications, and receive up-to-date information about your rights and obligations.

Why Is It Important to Monitor Your Accruals and Payments?

Regular monitoring of accruals and payments within the Bituach Leumi system helps prevent the accumulation of debt and ensures the timely receipt of entitled benefits. Through your personal account, you can:

  • Check the Status of Your Accounts and Debts.
  • Submit Applications for Various Benefits and Track Their Processing Status.
  • Update Personal Information and Report Changes in Your Family or Employment Status.

Thus, actively using your personal account on the Bituach Leumi website facilitates effective management of your social rights and obligations in Israel.

For a more detailed understanding of the personal account registration process using gov.il as an example, you can watch the following video guide:

Payment to Bituach Leumi After the Absorption Basket Ends

After completing the absorption basket, new immigrants must independently pay contributions to the National Insurance Institute of Israel (Bituach Leumi). Below are key points to consider.

How Does Automatic Payment Work in the First Months?

During the first six months after repatriation, when you receive the absorption basket, contributions to Bituach Leumi are automatically deducted from the financial assistance provided to you. This means that during this period, you do not need to worry about paying these contributions yourself.

What to Do When the Absorption Basket Ends?

At the end of the absorption basket period (usually after six months), the responsibility for paying contributions to Bituach Leumi transfers to you. It is important not to miss this moment to avoid accumulating debt. It is recommended to prepare for this in advance and find out the exact date when payments will end.

How to Properly Calculate and Pay Contributions?

The amount of monthly contributions to Bituach Leumi depends on your income and family status. If you are unemployed or your income is below a certain level, you may be eligible for a reduction in contribution amounts or exemption from them. To do this, you need to:

    • Contact Bituach Leumi: Reach out to the nearest branch or visit the official website to obtain information about your obligations and rights.

    • Fill Out the Necessary Forms: You may be required to provide information about your financial situation to determine the amount of your contributions.

    • Set Up a Payment Method: You can set up automatic payments through a bank account or pay contributions manually.

If, after the absorption basket period ends, you do not have a stable income, you may be eligible to receive a minimum living allowance (Autachat Achnasa) for 6-12 months after repatriation. To do this, you need to apply to the Ministry of Absorption (and simultaneously inform Bituach Leumi that you will be receiving the allowance).

Regular payment of contributions to Bituach Leumi ensures your access to medical and social services, as well as prevents the accumulation of debts and potential fines.

💡 If after a year of living in Israel you meet the criteria for receiving benefits, you should apply for them directly through Bituach Leumi.

Receiving Benefits and Their Impact on Your Status with Bituach Leumi

After the absorption basket period ends, new immigrants may face financial difficulties. In such cases, it is important to know about the possibility of receiving a minimum living allowance (Autachat Achnasa) and how this affects your obligations to Bituach Leumi.

Minimum Living Allowance (6-12 Months)

The minimum living allowance is intended for residents of Israel who do not have sufficient income to meet their basic needs. Eligibility for this allowance is granted to individuals who meet the following criteria:

    • Age: 20 years and older (in some cases, from 18 years).

    • Residence: Permanent residence in Israel.

    • Income: Lack of income or low income not exceeding the established maximum.

📃 After a year of living in Israel, to receive the minimum living allowance from Bituach Leumi, you will need to register with the Employment Service: Mandatory registration and regular visits to the employment bureau, except in cases of exemption.

The amount of the allowance varies depending on family status, age, and other factors. Check the current amount on the official website.

Why Is It Important to Inform Bituach Leumi About Receiving Payments from the Ministry of Absorption After the Absorption Basket Ends (6-12 Months)?

Receiving a minimum living allowance affects your obligations to pay insurance contributions to Bituach Leumi. It is important to promptly inform Bituach Leumi about the start of receiving this allowance to avoid accumulating debt.

If you begin receiving the allowance but do not inform Bituach Leumi, you may be considered a debtor for insurance contributions. This is because the amount of contributions and eligibility for benefits depend on your current income and employment status.

📮 After the absorption basket ends (6 months), independently contact Bituach Leumi and inform them if you will be receiving the allowance for another six months from the Ministry of Absorption.

How to Avoid Accumulating Debt When Receiving Benefits?

To prevent the accumulation of debt to Bituach Leumi, follow these recommendations:

  • Report Changes Promptly: When you start receiving any allowance or if your financial situation changes, immediately inform Bituach Leumi.

  • Regularly Check Your Account: Use your personal account on the Bituach Leumi website to monitor your account status and make timely payments of contributions.

  • Consult with Bituach Leumi Representatives: If you have questions or doubts, contact Bituach Leumi directly for clarifications and recommendations.

Prompt reporting and active interaction with Bituach Leumi will help you avoid accumulating debt and maintain your eligibility for necessary social benefits.

Leaving Israel and Obligations to Bituach Leumi

When planning an extended departure from Israel, it is important to understand your obligations to the National Insurance Institute of Israel (Bituach Leumi) to avoid accumulating debts and to maintain your rights to social services. Below are key points to consider:

What to Do If You’re Leaving for an Extended Period?

If you plan to stay outside of Israel for an extended period, you must notify Bituach Leumi. Depending on the nature of your departure (temporary or permanent) and your intentions regarding returning, the procedures may vary. Timely notification will help prevent misunderstandings and potential debts related to insurance contributions.

How to Renounce Residency (Form 627)?

If you decide to terminate your residency in Israel and relocate your center of life abroad, you need to complete Form 627 (“Questionnaire for Establishing Residence for Those Living Abroad”). This form is intended for individuals who are leaving Israel with the intention of emigrating. By filling out and submitting this form, you officially inform Bituach Leumi of your change in status, which releases you from the obligation to pay insurance contributions.

A detailed guide on how we filled out Form 627 is available on our website: https://ieroglif.com/forma-627/

The Importance of Timely Notification to Bituach Leumi

Timely notification to Bituach Leumi about your departure and change in residency status offers several benefits:

  • Preventing Debt Accumulation: As long as you are listed as a resident, you are obligated to pay insurance contributions. Failing to notify about your departure can lead to accumulated debts.

  • Maintaining Rights to Social Services: By properly updating your status, you can quickly restore your rights to social services upon returning to Israel in the future.

How to Avoid Automatic Deductions After Leaving?

To prevent automatic deductions from your account after leaving, it is recommended to:

  • Disable Automatic Payments: In your personal account on the Bituach Leumi website or through your bank account, cancel the automatic payment settings.
  • Check Bank Orders: Ensure that all standing orders for insurance contributions are canceled.
  • Confirm Changes: After making changes, obtain confirmation from Bituach Leumi regarding the termination of your contribution obligations.

For more detailed information on notifying Bituach Leumi about residing outside of Israel and other departure nuances, you can refer to the video: 

Automatic Payments — How to Disable Them?

Managing automatic payments with the National Insurance Institute of Israel (Bituach Leumi) is an important aspect of financial planning. Below are the steps that will help you enable/disable automatic payments and control your contributions.

Where to View and Disable Automatic Payments on the Bituach Leumi Website?

Access Your Personal Account: Go to the official Bituach Leumi website and log into your personal account using your credentials

Checking Payment Settings:

    • In your personal account, find the section dedicated to payments or payment methods.
    • Check which payment methods you have set up, including automatic deductions from your bank account or credit card.

Disabling Automatic Payments:

      • If you find active automatic payments, follow the instructions on the website to disable them.
      • In some cases, you may need to contact your bank or credit institution to cancel standing orders.

Why Is It Important to Monitor Deductions Even If You’ve Left Israel?

Even if you are absent from Israel for an extended period or have renounced residency, it is important to monitor your accounts with Bituach Leumi for the following reasons:

    • Preventing Debt Accumulation: Automatic payments may continue to be deducted, leading to accumulated debt, especially if your account lacks sufficient funds.
    • Avoiding Fines and Penalties: Failure to timely cancel automatic payments can result in fines and penalties for late or missed payments.
    • Maintaining a Good Credit History: Having debts can negatively impact your credit history in Israel.

    Regular monitoring and managing automatic payments will help you avoid financial problems and maintain control over your obligations to Bituach Leumi.

A Debt Has Accumulated with Bituach Leumi — What to Do?

We have encountered debts with Bituach Leumi several times due to inattention. Each time was a surprise because no one warns you or properly explains how to manage your affairs in Israel. From our mistakes, we learned that you need to carefully monitor your account balance on the website, as debts are displayed online.

More details about the debt situation and how we managed to annul it are written in the article: https://ieroglif.com/dolg-bituah-leumi/

Common Mistakes and Tips

When interacting with the National Insurance Institute of Israel (Bituach Leumi), new immigrants often make mistakes that can lead to financial and legal problems. Let’s examine the most common ones and share our experience so that you don’t step on the same rake.

Typical Cases of Debt Accumulation

1. Untimely Registration and Lack of a Personal Account

❌ Mistake: Many immigrants postpone registration with Bituach Leumi and do not create a personal account on their official website. This leads to missing important information about your rights and obligations, as well as not tracking accruals and payments.

Important: After arriving in Israel, register with Bituach Leumi and create a personal account on their website. This will allow you to receive notifications on time, control your contributions, and submit necessary applications online.

2. Ignoring Contribution Obligations After the Grace Period Ends

Mistake: After the absorption basket period ends (6 months), some immigrants do not start paying contributions to Bituach Leumi independently, believing they continue to be covered automatically. This leads to accumulated debt and fines.

Important: Be attentive to the deadlines of the grace period. After it ends, ensure that you pay contributions independently. Regularly check the status of your account in your personal account and set up automatic payments if necessary.

3. Failing to Notify About a Change in Status When Leaving the Country

Mistake: When planning an extended absence from Israel or moving to another country, some immigrants do not notify Bituach Leumi about their change in status. As a result, contributions continue to be charged, leading to accumulated debts.

Important: If you plan an extended absence or relocation, be sure to inform Bituach Leumi. Fill out Form 627 (“Questionnaire for Establishing Residence for Those Living Abroad”) to officially change your status and avoid further charges. Also, check if you have disabled automatic payments on their website.

Conclusion

Interacting with the National Insurance Institute of Israel (Bituach Leumi) requires attentiveness and awareness of your obligations. Failure to follow the rules or neglecting details can lead to accumulated debt and loss of rights to social benefits.

Key Takeaways:

  • Control Your Payments: Regularly paying contributions to Bituach Leumi is not only your obligation but also a guarantee of social protection. It is important to register on time, check your account status, and correctly manage payments, especially after the absorption basket period ends (6 months after repatriation!).

  • Inform About Any Changes: If you start receiving benefits or plan to leave the country, be sure to inform Bituach Leumi. Timely notification will help avoid debt accumulation and maintain access to social services.

  • Check and Adjust Automatic Payments: Pay attention to automatic payment settings, especially when changing your residency status or planning an extended departure from the country. Regularly check and adjust your payments to avoid unexpected expenses and financial problems.

A careful approach to your obligations with Bituach Leumi will help you avoid difficulties and ensure a stable social standing in Israel.

Additionally

To facilitate understanding and managing your obligations to Bituach Leumi, we have gathered several useful tools and resources.

Frequently Asked Questions (FAQ)

Question: Do I need to register with Bituach Leumi immediately after repatriation?
Answer: In the first six months, contributions are automatically paid through the absorption basket, but registering on the Bituach Leumi website will help you monitor accruals and avoid debts in the future.

Question: What should I do if I’m leaving Israel for an extended period?
Answer: You need to submit Form 627 to stop the accrual of contributions and avoid debts. It is also important to disable automatic payments through your bank or the Bituach Leumi website.

Question: What happens if I don’t pay contributions to Bituach Leumi?
Answer: Debt accumulates, fines are imposed, and there may be problems with receiving medical and social services.

Payment Calculation Calculator

To determine how much you need to pay to Bituach Leumi, you can use the online calculator on the Bituach Leumi website. This tool will help you calculate the amount of contributions based on your income, family status, and employment status.

Useful Links and Contacts

  • Official Bituach Leumi Website: btl.gov.il – Information on benefits, payments, and resident status.
  • Israel State Portal: gov.il – Social insurance rules for immigrants.
  • Bituach Leumi Support Service: You can call *6050 (from an Israeli number) or contact through your personal account on the website.

We hope these resources will help you understand the Bituach Leumi system and avoid unpleasant situations related to debts and social benefits.

This entry was posted in Aliyah to Israel, Israel. Bookmark the permalink.

Leave a Reply

🇬🇧 Attention! Comments with URLs/email are not allowed.
🇷🇺 Комментарии со ссылками/email удаляются автоматически.