How does Bituach Leumi (National Insurance Institute) calculate work-disability benefits?

Many people who are injured at work find it difficult to understand how the National Insurance Institute calculates the compensation they are entitled to. The calculator above is designed to clarify things and give an initial estimate, but it is important to understand the principles behind the numbers. Your rights are derived from two main variables: the insured salary and the medical disability percentage.

1. What is the “determining wage”?

The basis for calculating all work-injury claims is 75% of your average salary in the 3 months that preceded the month of the injury (including overtime, premiums and fixed bonuses).
For example: if you were injured in April, the average of your salaries in January, February and March will be used.

2. The difference between a lump-sum grant and a monthly benefit

The medical committee determines your disability percentage, and this is what dictates the type of payment:

• Below 9%: does not entitle you to monetary compensation (but the injury is recognized as a work accident for the purpose of medical treatment).
• Between 9% and 19.99%: entitles you to a one-time lump-sum grant (the amount of the monthly benefit multiplied by 43).
• 20% and above: entitles you to a fixed monthly disability benefit that will be paid for life (or until retirement age).

3. Temporary vs. permanent disability

In the initial stage after the injury, a “temporary disability” is usually determined for the recovery period. During this period you receive a full monthly benefit according to the determined percentage. Only at the end of the medical process is a “permanent disability” determined, and based on it the final grant or monthly benefit is calculated.