Before Form 161 can be processed, make sure the employer has completed the departure and payment details, you have the three latest payslips from that employer, and—only when more than three months have passed since your departure—an up-to-date balance confirmation from your provident funds. The form must be complete. If the employer has filled Part C2, you may also need instructions from the Israeli Tax Authority’s tax assessor and must pass those instructions to the employer and the relevant funds.
Form 161 is the Israel Tax Authority’s notice of an employee’s retirement from work and the employee’s related choices about severance grants. The employer normally starts the process; the employee does not independently reconstruct every amount. Use the checklist and route below to avoid submitting the wrong documents or confusing this process with Forms 161b or 161g.
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What Form 161 covers and when the new form applies
The new Form 161 has applied since 1 January 2024. Employers must use it to report an employee’s retirement from work, including retirement events that happened before 1 January 2024 if they are reported after that date. The relevant event is the employee’s final and complete departure from work when sums or rights accrued during employment, whether paid directly by the employer or held through provident funds.
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The form is not simply a payslip request. It combines the employer’s report of the departure and amounts with the employee’s decisions about the severance grants made available. The Tax Authority’s official guidance says that the law prevails if a conflict exists between the guidance and applicable legislation. A tax choice can have individual consequences, so do not infer a tax result from the checklist alone.
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Core document checklist
Prepare these items before asking the tax assessor for instructions or completing the employee section. The balance confirmation is conditional; it is not automatically required in every case.
| Document or information | Who supplies it | When it is needed | What to check |
|---|---|---|---|
| Fully completed Form 161 | The employer completes the employer portions; the employee completes the employee-choice portion. | Every ordinary Form 161 case. | Confirm that the departure is final and complete and that all relevant employer and provident-fund amounts or rights are included. |
| Three latest payslips from the employer you left | Employee obtains copies from the departing employer. | When the employee submits the completed form to the tax assessor for instructions. | Use the three most recent payslips issued by that employer, not payslips from a new employer. |
| Up-to-date balance confirmation from the provident funds | Employee requests it from the relevant funds. | Only if more than three months have passed since the departure date. | Use current balances and make sure the confirmation covers the funds connected with the reported employment. |
| Employee’s severance-grant choices | Employee records them in Part B. | After reviewing the amounts and rights made available in the employer’s report. | Make the choice that reflects the employee’s actual intention; seek advice if the tax effect is unclear. |
| Tax-assessor instructions, when applicable | Israeli Tax Authority tax assessor. | When the employer has completed Part C2 and the employee’s Part B choice calls for instructions. | After receiving them, deliver the instructions to both the employer and the relevant provident funds. |
What “fully completed” means in practice
A complete form has the employer’s departure and payment information, the employee’s selections, and any employer calculation or notes required in Part C. Do not sign or submit a form with blank fields merely because the missing information appears on a fund statement. Ask the employer to correct the form or explain the omission first. Keep a copy of the submitted form and every attachment.
When the three-month rule starts
Measure the period from the employee’s departure date shown for the final, complete termination. The official instruction requires an updated fund balance confirmation when more than three months have elapsed. It does not state that a balance confirmation is required at the three-month point itself or in every filing. If the date is disputed, ask the employer to confirm which departure date was reported before ordering a statement.
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Information to assemble before you complete Part B
Part A is the employer’s notice, but the employee should read it carefully. Have the following information available for comparison with the form and the payslips:
- The final and complete departure date, including whether the date shown is the last day of employment rather than the date a payment was made.
- The amounts and rights the employer reports as accrued during employment, including amounts held in provident funds.
- The names or identifying details of the provident funds that hold the reported rights, so a balance confirmation can be matched to the correct accounts when one is required.
- The employee’s intended choices regarding the severance grants made available in Part B.
- Any discrepancy between the employer’s report, the payslips and the fund records, written down with the date and the document that shows it.
These are preparation checks, not a new list of statutory attachments. The official checklist specifically identifies the completed form, the three latest payslips and, conditionally, an updated fund balance confirmation. Do not add documents simply because another retirement or inheritance procedure uses them.
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Who completes each part of Form 161
Part A: the employer’s retirement report
The employer supplies the departure details and the amounts or rights connected with the employment. This is the starting point for the employee’s choices. If a payment was made through a provident fund rather than directly by the employer, it still belongs in the retirement report when it accrued for the employee during the employment.
Part B: the employee’s choices
The employee records choices about the severance grants made available. Read the amounts in Part A and any accompanying explanation before making the selection. The form records the choice; it does not, by itself, provide a personalized explanation of every tax consequence.
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Part C: calculation, fund instructions and notes
Part C covers the employer’s calculation, instructions to provident funds and employee notes. If the employer completes Part C2, the employee should contact the tax assessor for instructions in accordance with the Part B choice. Once issued, those instructions must be delivered to the employer and the provident funds so they can act on the approved treatment.
Choose the correct filing route
Employer-led digital reporting
The Tax Authority’s digital job-departure service lets an employer or authorized representative report Part A. It can also allow an eligible employee to enter Part B after the employer has entered the departure data. The service is free and supports manual entry or an XML file.
Eligible reporters include employers with a deductions file or their representatives. An employee can use the service when the employer does not have a card or token only if the employer has granted the required system authorization. Authentication may use Tax Authority systems or the specified smart-card, token or representative access.
After the employer submits the report, the employee receives an SMS or email asking them to enter the system and make their choices. Some approvals may be issued immediately; other cases are sent for additional handling. The digital service page states that, after the tax assessor completes handling, employees and employers receive notices that approvals are available within 10 business days. That is the page’s stated notification process, not a guaranteed end-to-end completion time.
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An employee seeking tax-assessor instructions can use the Tax Authority’s online public inquiry system, the personal area, or an in-person visit by prior appointment. Submit the fully completed form with the three latest payslips. Add the updated provident-fund balance confirmation only when more than three months have passed since departure. Digital availability does not remove the need to provide attachments when the case is routed to the assessor.
Employer submission by another route
The employer can report through the digital service or through other routes listed by the Tax Authority, including physical submission or post to the tax assessor handling the employer’s deductions file. Ask the employer which route was used, because the employee’s next step depends on whether the employer has entered the departure data digitally and whether Part C2 applies.
Step-by-step preparation and filing
- Confirm that this is an ordinary employee departure. Check that the matter concerns your own final and complete departure and severance-grant choices. If the employee died or the request concerns reversing continuity, stop and use the separate process described below.
- Obtain the employer’s Form 161. Ask the departing employer to complete Part A and the relevant Part C fields. Review the departure date and every amount or right reported, including rights held in provident funds.
- Collect the three latest payslips. Use the last three payslips issued by the employer you left. Save clear copies, including all pages and any page that lists severance-related amounts.
- Check the elapsed time. If more than three months have passed since the reported departure date, request an up-to-date balance confirmation from each relevant provident fund. If three months or less have passed, the official instruction does not make that confirmation a universal requirement.
- Review Part B before selecting an option. Compare the employee-choice section with the amounts in Part A and your own records. If a choice is unclear or could affect your tax position, obtain advice from the Tax Authority or a qualified Israeli tax professional rather than guessing.
- Submit through the route that matches your case. If the employer used the digital service, follow the SMS or email instructions to enter your choices. Otherwise, use the Tax Authority inquiry system, personal area or an appointment, and attach the completed form and required documents.
- Respond to a Part C2 referral. If Part C2 was completed and the assessor requests or issues instructions, provide the decision or approval to the employer and the provident funds. Sending it to only one party can leave the funds without the instruction needed to process the payment.
- Keep a complete record. Retain the submitted form, payslips, any balance confirmation, correspondence, notices and proof of delivery. Record the date you submitted each item and the channel used.
Common mistakes and how to correct them
Submitting an incomplete form
A missing employer field or an unrecorded employee choice can delay the case. Return the form to the employer for completion rather than filling in employer calculations yourself.
Ordering a balance confirmation too early or omitting it too late
The balance statement is tied to the “more than three months” condition. Check the departure date first. When the condition is met, obtain a current statement; when it is not, do not assume the statement is mandatory solely because a fund holds the money.
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Using the wrong payslips
The required payslips are from the employer you left. Payslips from a subsequent employer do not satisfy that description.
Assuming the digital service guarantees immediate approval
The service may issue some approvals immediately, while other cases receive additional handling. The stated 10-business-day notice period begins after the assessor completes handling and should not be treated as a guaranteed total processing time.
Ignoring a Part C2 instruction
When Part C2 applies, the employee’s next action is not complete when the assessor issues an instruction. The instruction must reach both the employer and the provident funds.
Mixing ordinary Form 161 with another procedure
Do not attach survivor or continuity documents merely because they appear on another Tax Authority page. Use the form that matches the event.
Forms 161b and 161g are separate processes
| Form | When it is used | Documents listed for that process |
|---|---|---|
| Form 161b | Survivors’ notice when employment ended because the employee died. | The deceased person’s Form 161, the last three payslips of the deceased and applicants, updated fund balances, and a succession order or will when applicants are heirs. |
| Form 161g | A request to reverse severance or annuity continuity, or to withdraw funds designated for continuity in specified circumstances. | Prior Forms 161, continuity approvals, current fund balances and transfer confirmation when funds were moved between funds. |
Those attachment lists belong to the survivor and continuity procedures. They are not additions to the ordinary employee Form 161 checklist unless your matter actually falls into one of those categories.
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After submission: notices, delivery and follow-up
In a digital case, monitor the email address or mobile number used for the employer’s report because the employee’s invitation to make Part B choices arrives by SMS or email. Keep the notice and any approval available with the submitted form.
When the assessor issues instructions, send them to the employer and each relevant provident fund using a channel that leaves a record. If a notice does not arrive, or the employer’s report is not visible in the digital service, contact the Tax Authority through the listed inquiry channels or ask the employer to verify the submission.
When to get individual help
Use the Tax Authority or a qualified Israeli tax professional when the reported departure date or amounts are disputed, you are unsure which Part B choice reflects your circumstances, Part C2 is completed, or the event involves death or continuity. The official service explains the filing mechanics but does not replace advice about an individual tax election. Keep in mind that applicable law controls if it conflicts with administrative guidance.
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A simple digital folder or paper file can keep the completed form, three payslips, conditional fund confirmation and notices together. Organization is optional: the Tax Authority’s digital service is free, and no paid folder, software or service is identified as a filing requirement.
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