An amendment to the 2024 budget includes an increase in NHI earmarked contributions (“The Health Tax”), which will be effective from 2025.
The health tax has two “steps” and both will be increased progressively. The first step comprises the part of the salary up to NIS 7,522 (60% of the average salary), which will be increased from 3.1% to 3.235%. The second step (the part of the salary above 60% of the average salary) will be increased from 5% to 5.165%.
The funds generated will finance mental health services. A concurrent reform plans to expand the availability of and access to mental health services due to the increase in demand post the October 7th attacks (see https://eurohealthobservatory.who.int/monitors/health-systems-monitor/analyses/hspm/israel-2015/mental-healthcare-initiatives-post-the-october-7th-attacks). In 2023, additional funds had already been directed to psychotherapists following the October 7th attacks (156 million NIS compared to 75 million NIS in 2022) (Filut & Zarhiya, 2024) (National Insurance, 2024).