Quick Answer: Israel's unemployment insurance — called dmi avtala (דמי אבטלה) — is paid by the National Insurance Institute (Bituach Leumi / NII) under the National Insurance Law 5755-1995. To qualify, you must be an Israeli resident who was involuntarily unemployed, paid NII contributions for at least 12 months out of the 18 months before losing work, and register at a Lishkat HaTaasuka (Public Employment Service office) within 14 days. The daily payment is 70% of your average daily wage for the first 125 days, capped at NIS 493 per day in 2026, then 50% for up to another 50 days. Foreign nationals on B/1 work permits do not qualify. New immigrants (Olim) who took salaried employment can qualify once they accumulate the required contribution period.

Losing a job anywhere is stressful. In Israel, as a foreign national navigating a system you don't fully know, in a language you may not fully speak, it adds a distinct layer of pressure. Dmi avtala is Israel's answer to that situation, but the rules are specific and the consequences of missing them are real: register one day late and you lose benefits for every day of that delay. File the wrong form and your claim stalls for weeks.

What follows covers the unemployment insurance rules as they actually apply to employed people in Israel, with particular attention to the situations foreign workers and new immigrants run into most often. Knowing the framework before you need it, or the moment a redundancy conversation starts, is worth the time.

Unemployment insurance in Israel is one branch of the broader social insurance scheme administered by the National Insurance Institute (HaMosad LeBituach Leumi). The legal authority is the National Insurance Law [Consolidated Version] 5755-1995, Sections 158–200, which govern entitlement, contribution requirements, benefit amounts, and enforcement.

Every employed person in Israel — whether salaried or self-employed — pays NII contributions through their monthly paycheck. However, self-employed individuals (atzmai'im) do not pay into the unemployment branch and therefore cannot receive dmi avtala. Only salaried employees who have an employer-employee relationship recognized under Israeli law contribute to and can claim from the unemployment branch.

The NII administers the unemployment branch from its head office in Jerusalem (02-6709211) and through a network of 30 branch offices across Israel. Day-to-day contact, however, happens primarily through the Public Employment Service — the Lishkat HaTaasuka — which operates under the Ministry of Economy and Labor. The Lishkat HaTaasuka registers unemployed people, refers them to jobs, and acts as the gatekeeper for NII benefit eligibility. You cannot receive dmi avtala without first registering at the Lishkat HaTaasuka.

In Practice: Two Offices, One Claim

The most common mistake people make is going to the NII branch office first. Unemployment claims begin at the Lishkat HaTaasuka, not at Bituach Leumi. The Lishkat HaTaasuka registers your unemployment, issues a referral slip (tofes referral), and reports your status to the NII electronically. The NII then calculates and pays the benefit. Skipping the Lishkat HaTaasuka step means your NII claim cannot be processed — regardless of how clear your entitlement is.

2. Who Qualifies for Dmi Avtala

Under Section 163 of the National Insurance Law, you must meet all of the following conditions simultaneously to be eligible:

  • You are an Israeli resident for NII purposes — your habitual residence (mekom moshav) is in Israel. You don't need citizenship, but you do need legal status that triggers NII residency: permanent residency, an A/5 permit, or Oleh status. Tourists and short-term visa holders don't qualify.
  • You were a salaried employee, not self-employed, not a sole trader, not a company owner without a genuine employer-employee relationship. Company directors who are also majority shareholders are frequently excluded because courts have found no genuine employment relationship.
  • You are between 20 and 67 years old. Workers aged 62–67 qualify but receive a shorter maximum duration (see Section 4).
  • You became unemployed involuntarily — dismissed, made redundant, or in circumstances treated as constructive dismissal (see Section 6). Ordinary voluntary resignation disqualifies you.
  • You are available for work: physically and mentally capable, and willing to accept a suitable job offer.
  • You are actively looking for work and reporting to the Lishkat HaTaasuka on their assigned schedule.
  • You have met the qualifying contribution period (see Section 3).
In Practice: The 14-Day Registration Deadline

Section 168(b) of the National Insurance Law treats the first 14 calendar days after your last day of work as a window to register without penalty. Register on day 15 and you lose the first day of benefit. Register on day 30 and you lose 16 days. Register after day 30 and benefits start only from the date of registration — not from the date you became unemployed. This rule has no exceptions in the statute. Many people wait a week or two before dealing with paperwork and then discover that delay has cost them NIS 4,000–7,000 in lost payments. Register within 14 days, even if you are still negotiating your exit terms.

3. The 12-Month Contribution Requirement

The qualifying contribution period — tkufat hazkaut — is the central eligibility gate. Under Section 164 of the National Insurance Law, you must have been employed as a salaried worker and paid NII contributions for a minimum of:

  • 12 months out of the 18 months immediately preceding your last day of work (for most claimants under age 35)
  • 24 months out of the 36 months immediately preceding your last day of work (for claimants aged 35–44)
  • 30 months out of the 48 months immediately preceding your last day of work (for claimants aged 45 and older)

These months do not need to be consecutive. If you worked nine months, took three months of unpaid leave, then worked another six months, the total 15 qualifying months in the 18-month lookback period satisfies the requirement for workers under 35.

The contribution period is calculated by the NII based on your actual earnings records — not your employment contract. Months in which you earned wages and your employer paid the required NII contributions count toward the qualifying period. Months of unpaid sick leave, maternity leave on NII payments, or unpaid personal leave generally do not count, though paid sick leave periods may count if the employer was still liable for NII contributions on the sick pay.

In Practice: The Age 35 Jump in Requirements

The longer qualifying periods for older workers catch many people by surprise. An employee who turns 35 mid-career and then changes jobs faces a contribution lookback that has nearly doubled — from 12 of the last 18 months to 24 of the last 36. If the new job started less than 24 months ago and a layoff occurs, they may fall short. Employees in this bracket who sense a redundancy coming should review their NII contribution record using the online portal at bituchleumi.gov.il (Sections: My Account / Employment History) and verify that prior employment months are correctly recorded. Errors in the NII database are not uncommon and can be corrected by submitting employer wage records.

4. How Much You Receive: Rates, Duration, and the 2026 Ceiling

The daily dmi avtala payment is calculated under Section 167 of the National Insurance Law as a percentage of your yom avoda (daily wage), defined as your average daily earnings from the three months immediately before you became unemployed.

The rate is 70% of your average daily wage for days 1–125, dropping to 50% for days 126–175. The 2026 ceiling (NII Directive 1/2026) is NIS 493 per day, roughly NIS 14,800 per month. If your daily wage exceeds NIS 704, the ceiling limits your actual payment below 70%. To illustrate: a worker earning NIS 20,000/month gets 70% × NIS 667/day = NIS 467/day — below the ceiling, so they keep the full rate. A worker earning NIS 30,000/month would expect NIS 700/day, but receives NIS 493.

The first five days of each unemployment period are always unpaid, by statute (Section 169). This waiting period resets if you become unemployed again within the same calendar year.

Maximum benefit duration by age group:

  • Under 35: up to 50 days per year
  • Ages 35–44: up to 100 days per year
  • Ages 45–54: up to 138 days per year
  • Ages 55–67: up to 175 days per year

These maximum durations reset each benefit year (January–December). If you are unemployed for 60 days, find work, and then are laid off again within the same calendar year, the remaining entitlement in that year applies, not a fresh 50 or 100 days.

In Practice: What 50 Days Actually Means for Young Workers

The 50-day limit for workers under 35 is the most restrictive in the OECD — roughly 10 weeks including the five-day waiting period. At the 2026 ceiling of NIS 493/day, the maximum payout for a young worker is approximately NIS 22,185 before tax. Young workers earning above the ceiling receive exactly that ceiling regardless of their salary. Workers earning below the ceiling — e.g., NIS 7,000/month — will receive 70% of their daily rate (NIS 233/day × 45 paid days = approximately NIS 10,485 total). For this reason, workers under 35 should not use unemployment benefits as a substitute for building financial reserves: the Israeli system is designed as a short bridge, not a long-term safety net.

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5. How to File a Claim: Step by Step

The claim process runs through two institutions in sequence. Getting the order wrong or missing a step delays payment — sometimes by weeks.

  1. Obtain your dismissal letter and Form 125 from your employer. Form 125 (Tofes 125 — Hatzdarat Maavik al Peticha Misdar) is the employer's official confirmation that you were dismissed and the reason. You are legally entitled to this document; an employer who refuses to provide it within 14 days of dismissal violates Section 13 of the Notice (Dismissal and Resignation) Law 5761-2001. If your employer has already left or refuses to cooperate, the NII has a procedure to accept sworn declarations in substitution.
  2. Register at the Lishkat HaTaasuka (Public Employment Service) within 14 days. Take your identity document (teudat zehut or teudat oleh), Form 125, and your bank account details. For English-speaking new immigrants, the offices in Tel Aviv (03-7388000), Jerusalem (02-6299900), Haifa (04-8685555), and Netanya (09-8620000) have advisors who can assist in English. Online pre-registration at www.taasuka.gov.il can expedite the in-person visit.
  3. Receive a referral slip and reporting schedule. The Lishkat HaTaasuka will assign you a reporting day — typically once every two weeks — and provide a referral slip (tofes referral) confirming your registration date. This date is the start of your benefit entitlement calculation.
  4. File an NII benefit claim online or at a Bituach Leumi branch. Log in to bituchleumi.gov.il using your teudat zehut number and submit a Form 650 (Tofes Talash 650 — Bakshat Dmi Avtala). Alternatively, download the form and submit it in person at any NII branch. You will need your employer's NII registration number (mispar maavik), which appears on your pay slips.
  5. NII processing and first payment. The NII typically processes claims within 14–21 days of receiving the complete documentation package. The first payment covers the retroactive period from your registration date (minus the five-day wait). Payments are made directly to your Israeli bank account on the 28th of each month.
In Practice: What to Do When Your Employer Goes Silent

Foreign workers at small businesses and startups occasionally find that their employer has closed, fled the country, or is simply unresponsive when they need Form 125. The NII's enforcement unit (hafkachat maavikim) can compel employer compliance, but that takes time. The faster route: register at the Lishkat HaTaasuka immediately with whatever documentation you have — pay slips, employment contract, bank transfers showing salary — and submit an affidavit explaining the employer's non-cooperation. The NII is accustomed to this scenario and can process claims based on third-party salary records if the employer's NII contributions are on file. You should also file a wage claim at the Regional Labor Court to recover any unpaid final salary while the NII claim is in process — the two processes run in parallel.

6. Resignation vs. Dismissal: When You Still Qualify

Voluntary resignation generally disqualifies a claimant under Section 163(a)(3) of the National Insurance Law. However, the statute and subsequent NII rulings recognize a list of situations where a resignation is treated as constructive dismissal (peticha bli brerah) and does not forfeit the right to benefits:

  • Forced relocation more than 40 km from your home, without your consent. Refuse the transfer in writing before resigning — the written refusal matters.
  • A salary cut of more than 25% of your gross monthly pay, or a unilateral downgrade in role or benefits beyond what your contract allows.
  • Documented workplace harassment or abuse where you have filed a complaint under the Prevention of Sexual Harassment Law 5758-1998 or can show persistent abuse through HR records, police reports, or medical documentation. The NII's standard here is strict.
  • Resigning to care for a critically ill spouse, child, parent, or sibling, where the NII Disability Bureau confirms the care necessity. A specialist's medical report is required.
  • Leaving under a formal mutual agreement (heskem pikuach) — a voluntary redundancy package — as long as the agreement doesn't include a waiver of NII rights.
In Practice: Document Before You Resign

The constructive dismissal categories require documentation assembled before, not after, resignation. An employee who sends a resignation letter citing "intolerable conditions" and then tries to assemble evidence afterward faces an uphill NII appeal. The correct sequence is: (1) document the triggering condition in writing, ideally by emailing HR or management about it; (2) consult an employment lawyer; (3) resign in a letter that explicitly states the qualifying ground. The Regional Labor Courts and NII appeals committees take documentation seriously — a single well-drafted email sent before resignation can be the difference between benefit entitlement and none.

7. Foreign Workers on B/1 Visas: A Separate Category

Foreign nationals holding B/1 expert or B/1 caregiver work permits are explicitly excluded from the unemployment branch of the National Insurance Law. If you are on a B/1 permit, stop here — you do not qualify for dmi avtala, and the rest of this section explains what you do get instead.

The exclusion is set out in the National Insurance Law's schedule of "exempt foreign workers" — a category defined to include all foreign nationals whose legal status in Israel is tied to a specific work permit rather than independent residency. Both the B/1 Expert permit (for foreign specialists under the STEP program and the general employer-sponsor route) and the B/1 Caregiver permit (for foreign medical caregivers) fall into this excluded category.

The practical consequence: your employer pays NII contributions on your entire salary at the standard Israeli rate, but the unemployment component (roughly 0.5% employer-side) doesn't generate an entitlement for you. The government keeps that portion. When you lose your job, what you can actually claim is advance notice pay under the Notice Law 5761-2001 (one day per month up to 30 days, paid in lieu if they skip notice), severance of one month's salary per year of service under the Severance Pay Law 5723-1963 if you've worked more than a year (already in your pension fund if your employer used the Section 14 arrangement), payout of any untaken vacation days at your daily rate under the Annual Leave Law 5711-1951, and any accrued unpaid salary, dmei havraa (recreation pay), and overtime.

B/1 permit holders who are not paid these amounts can file claims at the Regional Labor Court (Beit Din HaArtzit l'Avoda) — see our guide on wrongful termination in Israel for the process. The NII does not adjudicate these employer-employee money claims.

In Practice: The "Expert Premium" and What Happens on Termination

B/1 expert permit holders working under the STEP program at technology companies must meet the 2026 minimum salary threshold of NIS 23,460 per month. When a company closes its Israeli R&D center or simply ends a contract, these employees receive notice and severance — but no dmi avtala. Their B/1 permit is linked to the specific employer and lapses when employment ends. PIBA (the Population and Immigration Authority) allows a 30-day grace period to find a new sponsor employer before requiring the permit holder to leave or regularize their status. The NII's exclusion of B/1 holders from unemployment benefits is one reason foreign tech workers often negotiate higher severance packages — the absence of a state safety net means their only cushion is what they negotiate with the employer. An Israeli employment attorney can help structure exit terms before any company-wide redundancy hits.

8. New Immigrants (Olim) and Unemployment Benefits

New immigrants who arrive in Israel under the Law of Return and receive their teudat oleh acquire immediate NII residency status. From the first day of salaried employment in Israel, their employer pays NII contributions on their wages — and those months start counting toward the qualifying contribution period for dmi avtala.

The core rule is no different from that for any other Israeli employee: an Oleh who has 12 months of NII contributions from salaried work in the 18 months before becoming unemployed qualifies for the full benefit. An Oleh who has worked only 8 months falls short and will not qualify under the standard track.

A few things that catch new immigrants by surprise:

  • Months worked abroad before making Aliyah don't count toward the Israeli qualifying period, even if your home country has a totalization agreement with Israel. The clock starts when you start paying Israeli NII contributions.
  • If you were previously in Israel on a B/1 Expert visa, those months of Israeli NII contributions may count toward the qualifying period after you make Aliyah — as long as they fall within the lookback window. Check your contribution history at bituchleumi.gov.il.
  • Sal Klita and dmi avtala are separate. The monthly absorption basket grants from Misrad HaKlita don't reduce your unemployment entitlement. If you qualify for both, you get both.
  • Language is not a barrier to filing. NII branches in Tel Aviv-North (03-6898800), Haifa-Neve David (04-8115800), and Beersheva (08-6462360) have staff who speak English, French, Russian, and Amharic. All NII forms have English versions on the government portal.
In Practice: The 12-Month Gap Problem for Recent Olim

The most common scenario where new immigrants fall through the gap: an Oleh who makes Aliyah, starts working immediately, and is then laid off during the company's first year of downsizing — or during a startup's funding crisis — after only 8–10 months of Israeli employment. They have not yet accumulated the minimum 12 months of contributions. In this situation, the Lishkat HaTaasuka will register them but the NII will deny dmi avtala on the basis of insufficient qualifying months. The Oleh's options then are: (1) income support (havatat haknasa) from the NII for those with very low household income; (2) continued Sal Klita absorption payments from Misrad HaKlita if still within the first year; (3) welfare assistance (kidmat revaha) from the Ministry of Social Affairs. An Israeli social worker at Misrad HaRvaha (Social Affairs Ministry) can help map the available support — call 1222 for the national social services hotline.

9. Partial Unemployment (Avtala Chelkit)

Israeli law also provides a partial unemployment benefit — avtala chelkit — for workers who lose one of multiple jobs or who have their hours significantly reduced. The benefit is available where:

  • You held two or more jobs simultaneously and lost one of them
  • Your total working hours across all remaining jobs fall below a threshold set by the NII

Partial unemployment benefit is more complicated to claim. You must present all current employment contracts, payslips from all jobs, and the dismissal documentation from the lost job. The NII calculates a blended daily wage across all employment and applies the same 70%/50% rate structure, adjusted for the actual income reduction.

The claim procedure is the same: register at Lishkat HaTaasuka first, then submit to NII — but the Lishkat HaTaasuka may need more time to verify your multi-employment status. Budget three to four weeks for the initial processing of a partial unemployment claim rather than the two to three weeks typical for full unemployment.

In Practice: Short-Time Work Arrangements (Koach Adam)

During the post-COVID era, and again during the 2023–2024 economic slowdown triggered by the Gaza war, the Israeli government activated short-time work (koach adam) arrangements that allowed employers to reduce hours and have the NII top up worker income. These arrangements are not permanent — they require a government declaration of emergency entitlement and separate ministerial approval. In ordinary times, an employee whose hours are simply cut by their employer (without a formal koach adam arrangement) must look to avtala chelkit rather than any separate scheme. The Ministry of Economy and Labor's website (economy.gov.il) posts current active koach adam declarations.

10. Obligations While Claiming: What the Employment Service Requires

Receiving dmi avtala is not passive. The law requires recipients to actively participate in the labor market and comply with the Lishkat HaTaasuka's instructions. Failure to comply results in suspension or cancellation of benefits under Section 166 of the National Insurance Law.

  • Attend reporting days. The Lishkat HaTaasuka assigns you a reporting slot, typically every two weeks. Missing it without advance notice and a documented reason — illness, reserve duty, a court date — suspends your benefit for every day between the missed visit and the next one.
  • Accept suitable job referrals. The NII defines "suitable" as work matching your profession, skills, and pay level (within a 20% salary reduction). You are not required to accept a completely different type of work or a significantly lower-paying role, but refusing a reasonable referral can suspend your benefits.
  • Report any earnings immediately. You can't receive full dmi avtala while earning salary from a job. If you start part-time work, notify the NII — the benefit adjusts. Concealing employment is a criminal offense under Section 200 of the National Insurance Law: you'll repay everything received plus a fine of up to twice that amount.
  • Participate in retraining if offered. Enrolling in a course offered by the Lishkat HaTaasuka typically extends your benefit by the course duration. Refusing without a good reason may affect your entitlement.
In Practice: Freelance Income While Claiming

Unemployed workers often pick up freelance projects during the benefit period. Under Section 163A of the National Insurance Law, occasional self-employment income during an unemployment period reduces — but does not eliminate — the daily benefit. The NII deducts two-thirds of each NIS of self-employment income above a floor of approximately NIS 1,800 per month from your daily benefit. The calculation is done on a monthly basis. If your freelance income exceeds your full dmi avtala entitlement for that month, you receive no benefit for those days. You must report any self-employment income to the NII monthly using Form 691 (Hodaat Hachnasa Mi'Atzma'iyut). Failing to report freelance income is the same criminal risk as concealing salaried employment.

11. When You Don't Qualify: Alternative Benefits

Not everyone who loses a job in Israel qualifies for dmi avtala. If you fall short of the contribution period, were a B/1 permit holder, or were self-employed, there are alternative support mechanisms worth knowing about:

  • Income support (havatat haknasa): the NII pays this to Israeli residents whose household income falls below the statutory minimum under the Income Support Law 5741-1980. The 2026 rate for a single person is approximately NIS 2,968 per month. Apply through the NII Welfare Section at 1222.
  • Financial rehabilitation (tikun kalkali): if job loss has tipped you into serious debt, you can petition the Economic Affairs District Court under the Insolvency and Economic Rehabilitation Law 5778-2018. A separate track from unemployment benefits, but sometimes the more pressing problem.
  • Local social services: the Misrad HaRvaha welfare departments can provide emergency cash, food vouchers, and referrals to charities. The national line is 118.
  • Sal Klita for new immigrants: if you're still within your first year in Israel, monthly absorption grants from Misrad HaKlita continue regardless of employment status and can supplement whatever other support you receive.

Frequently Asked Questions

No. Foreign workers holding B/1 expert or B/1 caregiver permits are explicitly excluded from the unemployment branch of the National Insurance Law 5755-1995. Their employers pay the full NII contribution rate but the unemployment component is not credited to them. When a B/1 permit holder loses their job, their entitlement is limited to severance pay, advance notice pay, and any unused leave — not dmi avtala. New immigrants (Olim) who arrive and take salaried employment are in a different category and can qualify after meeting the 12-month contribution period.

You must register at a Lishkat HaTaasuka (Public Employment Service office) no later than 14 days after your last day of work to receive full benefits from your first day of eligibility. Registering between 15 and 30 days after separation causes you to lose benefits for the days between your last work day and the registration date. Registering after 30 days causes benefit entitlement to begin only from the registration date, not from termination. In 2026, online registration is available through the employment service portal for those who cannot attend in person.

Generally yes — dmi avtala is designed for involuntary unemployment. However, the National Insurance Law recognizes several circumstances where resignation is treated as constructive dismissal and still qualifies: forced relocation to a workplace more than 40 km from your home without your consent, a material reduction in salary or working conditions, documented workplace harassment or abuse, and caring for a first-degree sick relative. In these cases you must document the circumstances carefully before registering.

The daily benefit rate is set at 70% of your average daily wage for the first 125 days, dropping to 50% for days 126 through 175. In 2026 the NII caps the daily benefit at NIS 493 per day (updated January 2026) and sets a floor at the daily minimum wage equivalent. The ceiling means that higher earners receive less than 70% in practice once their salary exceeds approximately NIS 14,800 per month. The NII also applies a waiting period: the first five days of unemployment each year are unpaid.

Not yet. The standard eligibility requirement is 12 months of Bituach Leumi contributions out of the 18 months immediately before your unemployment. Eight months is short by four months. If you were employed previously in Israel (even before making Aliyah on a work visa), those months may count toward the qualifying period — check with Bituach Leumi's new immigrant desk at 04-8812000 (Haifa) or 03-9547777 (Petah Tikva). If you do not yet qualify, you may be eligible for income support (havatat haknasa) from Bituach Leumi or welfare assistance from the Misrad HaRvaha while you look for work.

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