Tech Employees Accumulate Double Pension Savings Compared to Rest of Israeli Economy
Israeli high-tech employees accumulate nearly double the pension savings of other workers, with a median balance of NIS 580,402. However, analysis reveals gaps in insured salary portions, along with notable disparities between men, women, and startups.
Israeli tech sector employees accumulate nearly double the pension savings compared to the rest of the economy, according to a recent analysis by financial platform FINQ based on data from customer pension clearinghouses over the past 12 months. The median pension balance for tech workers aged 25–54 stands at NIS 580,402, compared to NIS 296,723 for other savers in the sample. Interestingly, the tech cohort is younger on average, at 36.8 compared to 38.7 for other savers, yet holds substantially higher accumulated wealth.
High Salaries Do Not Fully Translate to Pension Base
The advantage begins with salary, as the median reported gross salary for tech employees in the sample is NIS 33,000 per month. However, the median salary insured for pension purposes is lower, standing at approximately NIS 25,995. This reflects a gap of roughly NIS 7,000 per month that is not included in the baseline calculation for pension deposits. Among other savers in the sample, the ratio between insured salary and reported salary is significantly higher at about 94%, compared to roughly 80% in the high-tech sector.
In addition, about 61.9% of tech employees in the sample insure less than 90% of their reported salary, contrasted with approximately 43% of other savers. While this discrepancy may stem from variable compensation components, bonuses, or grants common in the tech industry, it demonstrates that high gross salaries do not automatically translate in full to long-term pension accumulation.
Internal Disparities: Women, Freelancers, and Startups
A deeper dive into the tech sector reveals notable internal gaps. The median pension balance for men in tech is approximately NIS 598,900, compared to roughly NIS 414,400 for women—a gap of about 31%. This occurs even though the median insured salary for men is only about 3.5% higher, at NIS 25,910 versus NIS 25,008 for women.
Furthermore, tech freelancers trail behind salaried employees, with a median balance of NIS 370,600 compared to NIS 582,400 for salaried tech workers. Employer size also correlates with accumulated balances: employees in large corporations boast a median balance of NIS 722,900, dropping to NIS 619,500 in mid-sized firms, and NIS 501,100 in small companies and startups. Financial experts emphasize that while tech workers enjoy a structural advantage, active management of insured salary bases and contribution rates remains essential.
