What can I do if my Israeli employer failed to deposit my pension contributions?

The obligation itself comes from the general Expansion Order for Comprehensive Pension Insurance, which makes pension coverage mandatory for virtually all employees and sets minimum contribution rates split between employer contributions, the employee's withheld share, and severance-linked amounts. The employer must transfer these sums to the chosen fund each month within the statutory deadline. When it withholds your share from your payslip but never deposits it, that is not a mere accounting lapse. Section 19A of the Wage Protection Law 5718-1958 treats sums that should have been paid into a pension or provident fund as if they were wages, so late or missing deposits can trigger delayed-wage compensation (pitzuei halanat sachar), which accumulates quickly and is deliberately punitive. Withholding an employee's own money without depositing it can also be a criminal offense.

The practical steps are straightforward, and they apply equally to foreign workers, who have the same core pension rights as Israeli employees. Start by requesting a statement (doch shnati) directly from your pension fund, which will show exactly which months are missing and how much. Send the employer a written demand referencing those gaps, then, if it is not resolved, file a claim in the Regional Labor Court (Beit HaDin HaEzori LaAvoda). You can also complain to the Ministry of Labor's enforcement arm, which can impose administrative fines. Do not wait indefinitely, because although the general limitation period is seven years, the delayed-wage penalty has a shorter effective window and is reduced if you delay. Our guide to employment law in Israel for foreigners sets out the wider framework.

From the full guide: Employment Law in Israel for Foreigners

← Browse all Q&A