National Insurance benefits increase according to the rise in the consumer price index and the average wage

The amount of National Insurance benefits is prescribed in Knesset legislation and the National Insurance issues an update on allowances for public knowledge

National Insurance allowances increase at the beginning of 2024 in accordance with the consumer price index and the average wage, under the National Insurance Law.   

As mentioned, disability allowances that include the general disability , attendance and disabled child allowances are the only benefits linked to the average wage, this after the Disability Reform that was finalized in 2021.  

This year, the average wage increased by 5.6% and as of January 2024, the National Insurance allowances will be updated, and the general disability pension at full level of
earning incapacity will amount to NIS 4,291 while last year it was NIS 4,063.

A disabled person with full earning incapacity and an increment for a spouse (who is not disabled) - will now receive NIS 5,673 while in 2023 he received
NIS 5,373.

General disability pension update:

• The attendance allowance for people with a more severe disability, also increases according to the average wage in the amount of between NIS 95 and NIS 520, depending on the percentage of disability and difficulty.
• The disabled child allowance increased, too, and for a child with 100% disability, the allowance will increase from NIS 3,295 to NIS 3,479. An increase of NIS 184.
  The increment for a ventilated child with disability will rise as of the month of January from NIS 9,293 to NIS 9,813 - an increase of NIS 520.

Disabled child allowance update:

Additional allowances:

However, the following allowances: old-age, survivors, income support, maternity, children as well as the savings plan for each child - are linked to the index, and therefore, the rates of such allowances as of January 2024 – will rise at a significantly lower rate.

• An old-age pension for an individual will rise from NIS 1,680 to NIS 1,736 only (for 80+ year-olds there is a mere NIS 98 increment).
  For an individual with a spouse who does not receive this pension, the old-age pension will rise from NIS 2,525 to NIS 2,609, an increase of only NIS 84.
• Survivors' pension (widower, widow and orphan of an Israeli resident who was insured and paid national insurance contributions as per the law) will also increase proportionally in amounts between NIS 39 and NIS 84, depending on family composition.
• Long-term care benefit: the long-term care benefit in cash does not change at all and the rates remain as they were and range from NIS 738 only to NIS 6,437 only in severe nursing situation (level 6). It should be noted that a long-term care benefit can be provided in cash but also in various services, such as nursing caregivers, laundry services, panic buttons and more. Also, with the increase in the minimum wage in April – the allowance is also expected to rise.
• Child allowances and savings plan for each child – increased by a few shekels, and for child allowances the increase does not even exceed NIS 10 in total.
• Birth grant - also increases based on the index and not according to the average wage.
  A birth grant for the first child will rise from NIS 1,923 to NIS 1,986 in 2024 – an increase of NIS 63.
  The grant for a mother giving birth to twins will increase by NIS 317, from NIS 9,613 in 2023 to NIS 9,930 in 2024.
• Income support benefit – Up to the age of 55, the income support benefit increases by between NIS 62 and NIS 122 depending on the matrimonial situation.
  From age 55 to retirement age, the amounts are higher, but the increase ranges from NIS 79 to NIS 159, depending on the matrimonial situation and family composition.

A week ago, the National Insurance issued its Annual Poverty Report and, this time too, it was also clear that National Insurance allowances significantly contribute to rescue people out of poverty. According to the report, the poorest people in descending order are: recipients of income support benefit, general disability pension, child allowance and unemployment benefit, and last on the list are recipients of old-age and survivors pensions.

The report shows that, relatively speaking, the allowances having the most effect on the incidence of poverty are the following: old-age and survivors, disability, unemployment benefits, income support and children.

It is well known that the National Insurance does not determine the amount of the allowances, but rather the Knesset of Israel. The update is issued annually in accordance with legislation that provides which allowance is to be linked to which index (the average wage or the consumer price index).