New olim who are obligated to pay US Social Security taxes now will receive an exemption from paying Israeli National Insurance contributions for five years in order to prevent double payment.
The Knesset plenum on Wednesday approved in second and third readings the bill to amend the National Insurance Law, initiated by MK Simcha Rothman, Chair of the Constitution, Law and Justice Committee.
The law is intended to prevent a situation of double social insurance payments for new Olim from the United States, who the US Social Security system requires to pay, despite not being US residents. The law was advanced in the Labor and Welfare Committee, chaired by MK Michal Woldiger.
According to legislators, the amendment will first and foremost encourage Aliya from the United States and remove concerns for olim who might hesitate for economic reasons.
Thousands of new olim are forced to pay social insurance both in Israel and in the United States, a situation that is said to burden them, prevent them from expanding their sources of livelihood, and, according to data from the organization "Nefesh B'Nefesh," constitutes a barrier that causes many others to avoid or delay their Aliya to Israel. The amendment will put an end to this situation.
Olim from the United States face a unique situation, as there is no agreement between Israel and the United States to prevent double National Insurance payments, unlike with many other countries. The United States is unique in that it imposes high Social Security payments not only on US residents but also on its citizens who are residents of Israel, thereby heavily burdening the livelihood of US citizens living in Israel.
MK Simcha Rothman stated, "This is an important correction. The bill passed from one Knesset to another, and many Knesset members, including myself, tried to promote it in the past but encountered many difficulties."
He added, "I am happy that in this Knesset we succeeded in doing it for the sake of the Olim. Now I call on our brothers overseas: Come and immigrate to Israel. It has always been the right choice, and today, even more so, as we have succeeded in removing an unnecessary and burdensome economic barrier. Arise ye, and let us go up to Zion!"