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How is NIS calculated?


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How is NIS calculated?


NIS is calculated based on a percentage of the wages or salaries earned by employed contributors. The total contribution is 14% of the actual wage or salary paid to the employee. This is derived from a 5.6% deduction from the employee's pay, and the remaining 8.4% paid by the employer on behalf of the employee.

The employer's contribution is paid directly to the National Insurance Board. The employee's contribution is deducted from the employee's wages and is paid directly to the National Insurance Board. The NIS contributions are used to fund social security benefits such as old age pensions, maternity benefits, funeral grants, and other benefits for employees and their families.

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