The Pension and Provident Fund Company

A study fund is a savings plan with a term of six years or more. Study funds benefit from tax advantages and are designed for both salaried employees and self-employed individuals. In the case of a salaried employee, both the employee and the employer contribute monthly to the fund, based on the employee’s salary and legal provisions. This savings channel is considered attractive because, at the end of the savings period, the funds can be withdrawn tax-free up to the annual deposit cap.

The saver is not required to use the fund’s money for its original purpose – continuing education, after three years of saving. Instead, after six years, the funds can be used for any purpose. The money in a study fund can finance extraordinary expenses and “small mid-life dreams,” such as a family vacation, home renovations, funding a large event and other things. However, it is very important to view the savings in the study fund as an integral part of the pension savings intended for old age. Study funds become liquid after three years for members who have reached retirement age.

Certainly. A self-employed individual may deposit up to 7% of the designated income ceiling for the study fund, which is ILS 293,397 per year (as of 2026). This amounts to an annual deposit ceiling of ILS 20,566, of which ILS 7,335 per year is considered a non-deductible expense, and ILS 13,203 is deductible for tax purposes (recognized expense). The maximum tax benefit for self-employed individuals depositing into a study fund is ILS 6,205, assuming a marginal tax rate of 47%. For more information about study funds for self-employed individuals, click.

Since a study fund is a medium-term savings product, its returns are published monthly in the financial press. However, when comparing different study funds, it is recommended to use the Ministry of Finance’s system for comparing provident funds and study funds, which displays returns for periods of one, three, and five years.

Yes, it is possible. You can make the switch through your personal zone on the Meitav website or by filling out the transfer-between-tracks form available on the company’s website. If you wish to transfer from other funds to us, you can open a study fund with Meitav and transfer money from other funds to it.

Every employee is entitled to choose where their study fund money will be managed. For state employees, when opening a study fund, the employee must complete the NSM (of the Civil Service Commission) form, provided by the payroll department, before starting employment. In the NSM form, the state employee specifies the details of the study fund they have chosen to join, thereby informing their employer which state employee study fund to make deposits to on their behalf.

Click here for information on how to withdraw the funds.

The salary level is the basis for deposits into a study fund for salaried employees. The determining salary is the employee’s income for social benefits. As of 2026, the salary ceiling for tax exemption is ILS 15,712 and is updated periodically. The standard employer contribution rate is 7.5%, up to a tax-exempt ceiling of ILS 1,178 per month.

If the employer makes deposits beyond the current salary ceiling (ILS 15,712 multiplied by 7.5%), the employee will be subject to marginal tax on the excess deposit in their monthly pay slip and, in addition, a 25% capital gains tax on the real profit when withdrawing the funds. The employee’s contribution rate (2.5%) is capped at ILS 393 per month.