A group of high-tech workers has banded together to petition the High Court of Justice against the decision to raise the ceiling on National Insurance Institute and Health Tax payments. That ceiling was doubled in July 2009 from five times the average wage to 10 times. The high-tech workers have found a cause they can agree to - raising their after-tax salaries - and have joined two petitioners to the High Court: the Lahav association representing the self-employed and the Israel Bar Association. Workers with gross salaries of over NIS 38,415 a month, five times the average monthly wage, used to pay the same NII payments as any person who earns more than that amount. But at present they must pay NII deductions on salaries of up to NIS 76,830 a month. This translates into another NIS 6,850 per month in NII payments for people earning NIS 80,000 a month.
The changes were made last year and are also applicable in 2010. For 2011 the treasury is proposing to lower the ceiling to eight times the average wage and then to seven times in 2012, and will settle at five times in 2013. The original petitions were filed last August and September, and the petitioners are demanding that the court rule soon.
The court's spokeswoman said the petition had been heard, it was being given preferential treatment, the decision was being written and the ruling would most likely be handed down shortly.
The Finance Ministry said in response: "In order to reduce the NII deficit, which is NIS 3 billion, the cabinet decided on a program in which employers, workers and those receiving allowances would all contribute to reduce the deficit and avoid reductions in NII allowances in the future. We regret that those earning high salaries are the ones shirking their social responsibility.".
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