Question: I lost my job and am currently receiving unemployment. I’ve just been offered a short-term job that would bring in some much-needed funds to my household income. But I don’t want this to interfere with my unemployment benefits. Is this possible?
Answer: According to Israeli law, you can work part-time while receiving unemployment, as long as you’re not working for the same entity that let you go. If you are paid a daily rate that is higher than the unemployment daily rate, you must report these days to Bituach Leumi and your income will be deducted from your unemployment. You continue to make your required visits to the unemployment office and seek employment, either in another part-time job or in a full-time position.
In a case where the daily income from work is lower than the unemployment rate, you can request that the employment office (Lishkat Taasuka) deduct these days from your unemployment. These days won’t count toward your maximum days of unemployment and you won’t receive payment from Bituach Leumi for them. Since you’re not getting paid for those days, your salary is not deducted from the monthly unemployment payment.
Reporting income during the unemployment period is done online directly to Bituach Leumi. If you’re an employee, you send your pay stubs. If your part-time work is freelance, your income is estimated based on your annual income divided by 12 and is adjusted after the end of the year.
Please note that employees that are put on unpaid leave (Chalat) are not allowed to work at all for the company that put them on leave while receiving unemployment.
Since income is deducted from unemployment payments, a short-term job may not be financially smart. In many cases, it is better to put your time and energy into looking for a more permanent position. However, if there’s a chance that this temporary job will become long-term or that you will learn valuable skills for the job market, it’s worth taking the hit on unemployment. If you’re restless and not enjoying your time off from work, that can be another reason to take a job that won’t bring in more than you would get on unemployment.
Some helpful resources to assist you in finding a job: