The loss of capacity to work means that for various reasons a person loses the ability to provide for themselves and their family. This can lead to financial strain and may require assistance from insurance agencies and pension funds.
National Insurance and Private Insurance
In Israel, those who lose the capacity to work may qualify for an allowance from the National Insurance Institute or private insurance companies. This helps ensure financial stability during such challenging times.
Employer Obligations and Employee Contributions
Every employer in Israel must set aside money for their employees’ pension funds. Simultaneously, employees have specific amounts deducted from their wages towards their pension. Self-employed individuals must also contribute to their pension funds each month.
Utilization of Pension Funds
The accumulated funds are not reserved solely for retirement but can also be used as insurance for those who lose the capacity to work. This flexibility adds an extra layer of security for workers.
Compensation Conditions
Receiving compensation from the pension insurance framework is subject to certain conditions. This includes a 25% or more loss of work capacity for over 3 consecutive months, among other factors.
Support from Emuna
Emuna offers professional support, both medical and technical, to help clients submit parallel claims to both the insurance company and the National Insurance Institute. Our experienced team ensures that clients receive maximum compensation.
Conclusion
Loss of the capacity to work is a significant issue that requires careful financial planning and support from various sources. With the right guidance and understanding of insurance and pension frameworks, those affected can navigate through this challenging phase with the appropriate assistance.
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FAQS
Loss of Work Capacity
Should my income decrease due to leaving my job, will I receive the disability pension again? Will I need to appear before a medical committee again?
If you have stopped working, you will resume receiving the disability pension without the need to be examined by a medical committee – as long as the degree of incapacity you were granted is still valid.
Is there a difference between the percentage of medical disability and the degree of incapacity?
The percentage of medical disability is a percentage of disability determined by a physician of the National Insurance Institute (or of the Medical Committee for General Disability) for medical impairments. The percentage is established according to a list of impairments, which include a range of disabilities with varying degrees of severity. For instance, a percentage of 10% is determined for minor high blood pressure, and 40 % for acute high blood pressure that has repercussions for heart health.
A percentage of medical disability does not equal a disability pension, but is a necessary prerequisite for determining the loss of earning capacity and the degree of incapacity. The overall percentage of medical disability must be of significant severity in order to assess a degree of incapacity.
The degree of incapacity, expressed in percentages, indicates to what extent (full, partial or nil) the disabled lost his capacity to work and earn a living. With regards to a housewife, her capacity to function in the household is assessed. An individual will be entitled to a disability pension only if he was granted a degree of incapacity. Among the main factors influencing the degree of incapacity are the medical disability and its severity, education, occupation, and employment history.
Assessment of capacity loss involves 4 degrees: 60%, 65%, 74% and 100%. A degree of incapacity rated at 100% entitles an individual to the maximum allowance.
Clarification: All the questions and answers on this page are written for general understanding purposes and should not be considered legal advice.