Unpaid Pension: How to Force Your Employer to Pay Debts in Israel

The Core Issue

If your employer does not make pension contributions (keren pensia) and severance pay contributions (pitzuim) on your behalf, they are in violation of the law. Every salaried employee in Israel is entitled to these social savings. This is your money for the future, and you can compel the employer to repay the debt through official channels.

Who is Entitled?

Virtually every salaried employee in Israel who meets the following criteria is entitled to pension contributions:

• You are over 21 years of age (for men) or 20 years of age (for women).
• You have been employed by the employer for 6 months. If you already had an active pension fund before starting the job, the entitlement begins from the first day.
• You are a salaried employee (sachir), not a self-employed individual (atzmai).

Who is NOT entitled:

• Self-employed individuals (atzma'im), who are required to make contributions for themselves independently.
• Workers whose status is undefined (e.g., "off-the-books" work without payslips).

Your Rights

The law obligates the employer to contribute a certain percentage of your salary to a pension fund. These contributions consist of three parts: employee contributions, employer contributions, and severance pay contributions (pitzuim).

Standard contribution rates (subject to minor changes):

This money accumulates in your personal pension account and belongs to you, even if you resign.

Step-by-Step Guide

1. Verify Contributions. Request an annual statement (dukh shnati) from your pension company (keren pensia or kupat gemel). The statement will show whether payments from the employer were received and in what amount. This can be done online via the fund's website or by phone.
2. Send a Written Warning. Draft a formal letter to the employer (mikhtav hatra'a). Specify the period for which contributions are missing and demand immediate payment of the debt. Retain a copy of the letter and proof of its delivery.
3. File a Complaint with the Ministry of Labor. If the employer ignores your demand, file a formal complaint with the Enforcement and Regulation Administration (Minhal ha-Akhifa ve-ha-Asdara). They can impose a significant fine on the employer and compel them to pay the debt.
4. Petition the Labor Court. If the previous steps have not yielded results, you have the right to file a claim with the Labor Court (Beit Din le-Avoda). At this stage, it is highly recommended to secure the support of a lawyer specializing in labor law.

Document Checklist

Assemble a complete set of documents before taking action. This is your primary tool.

• Identity Card (Teudat Zehut).
• All payslips (tlushei maskoret) for the period of arrears.
• Employment contract (hoze avoda), if available.
• Annual statements from the pension fund (dokhot shnati'im) confirming the absence of payments.
• A copy of your written notice to the employer and proof of its delivery.
• Any other correspondence with the employer regarding this matter.

Pitfalls

• Statute of Limitations. You can claim pension contributions for the last 7 years. Do not delay in taking action, or you may forfeit a portion of the funds.
• No 'tlush' — no proof. The payslip (tlush maskoret) is your primary document. Without it, proving the fact of employment and the salary amount is extremely difficult. Always demand and retain your payslips.
• Employer Bankruptcy. If the company has gone bankrupt, it is impossible to collect the debt directly. In this case, a claim must be filed with Bituach Leumi (the National Insurance Institute), which partially covers such debts from a special fund. This is a separate and complex procedure.
• Do not accept verbal promises. All agreements with the employer regarding debt repayment must be documented in writing.

Contacts and Links

• Pension Funds: The contact information for your fund is listed on the annual statement (dukh shnati).
• Ministry of Labor (Misrad ha-Avoda): The form for filing a complaint against an employer can be found on the ministry's official website. To search, use the following Hebrew keywords: הגשת תלונה על מעסיק משרד העבודה.
• Labor Court (Beit Din le-Avoda): Addresses and phone numbers for regional courts can be found online.

Dictionary