Below
is an explanation of the method used to calculate the benefit amount to
which those who earn work income are entitled, as of Jan 01, 2025:
Stage 1
The following amount of income shall be deducted from the amount of your work income (tax credit):
Up to age 55:
- Single – NIS 666 .
- Couple, couple + child/children – NIS 932 .
- Single parent – from your work income up to NIS 4,502 is deducted NIS 932 .
- A single parent who is entitled to a benefit for dependents or a survivors pension with income supplement - from your work income up to NIS 4,502 is deducted NIS 3,662 .
From age 55:
- Single – NIS 1,731 .
- Couple, couple + child/children – NIS 2,264 .
- Single parent – from your labor income up to NIS 4,502 is deducted NIS 2,264 .
- A single parent who is entitled to a benefit for dependents or a survivors pension with income supplement - from your work income up to NIS 4,502 is deducted NIS 3,662 .
Stage 2
From the balance of your income, after deduction of the relevant credit sum, calculate as follows:
Up to age 55:
- Single, couple – 70%
- Couple + child – 67.5%
- Couple + children – 62.5%
From age 55:
- Single, couple, couple with child/children – 60%
For single parent – the benefit rate is 25% up to an income of NIS 4,502 . For income higher than NIS 4,502 , applies an additional support benefit of 60%.
Stage 3
Deduct the amount received in Stage 2 from the benefit amount that you would have received had you not been working. Table of benefit amounts.
Example: For a single parent aged 38 who earns a gross income of NIS 4,800, the benefit is calculated as follows:
Stage 1:
We deduct the credit amount of NIS 932 from an income of NIS 4,502 .
NIS 932 - NIS 4,502 = 3,570
Stage 2:
We calculate 25% from income up to NIS 4,502 remaining after the credit
3,570 x 25% = 893
We deduct NIS 4,502 from the gross income of NIS 4 800
4,800 - NIS 4,502 = 298
We calculate 60% of the income above NIS 4,502
298 x 60% = 179
179 + 893 = 1,072
1,072 is the sum to be deducted from the income support benefit.
In case you earn income from work and other sources, a different calculation method is used.
Here is a calculator to determine the amount of income support benefit to which you are entitled.