In 2026, a keren hishtalmut (Israeli study fund) receives 7.5% of gross salary from the employer and 2.5% from the employee, up to a recognized ceiling of 15,712 ₪ per month; a 12,000 ₪ salary for 6 years at a 7% annual return grows to about 107,000 ₪, of which about 64,800 ₪ is employer money, per the Israel Tax Authority and Kol Zchut.
How is it calculated?
The monthly deposit is 10% of gross salary: 7.5% from the employer and 2.5% from the employee, up to the recognized ceiling of 15,712 ₪ per month in 2026. On a 12,000 ₪ salary the employer deposits 900 ₪ and the employee 300 ₪ — 1,200 ₪ per month in total. The employer's 7.5% is money added on top of your salary.
Deposits compound at the assumed annual return: 1,200 ₪ per month for 6 years at 7% reaches about 107,000 ₪, of which about 64,800 ₪ is employer deposits out of about 86,400 ₪ in total deposits. Withdrawal is tax-free after 6 years; gains are tax-exempt on deposits up to 1,571.20 ₪ per month (10% of the ceiling), and deposits above that pay 25% tax on real gains. Past returns do not guarantee future returns.
Frequently asked questions
When can I withdraw a keren hishtalmut tax-free?
After 6 years from the first deposit, withdrawal is fully tax-free. In the example — a 12,000 ₪ salary at 7% — about 107,000 ₪ accumulates over 6 years and can be withdrawn with no tax.
How much goes into a keren hishtalmut in 2026?
The employer deposits 7.5% and the employee 2.5% of gross salary — 10% in total, up to a salary ceiling of 15,712 ₪ per month. On a 12,000 ₪ salary that is 1,200 ₪ per month, including 900 ₪ from the employer.
Are keren hishtalmut gains tax-free?
Yes — on deposits up to 1,571.20 ₪ per month (10% of the 15,712 ₪ ceiling), gains are tax-exempt per the Israel Tax Authority. Deposits above that amount pay 25% tax on real gains.
This calculation is a general estimate for illustration only. It does not constitute tax, pension, or investment advice, nor a substitute for personal advice from a licensed professional, and should not be relied on for decisions.
