National Insurance Institute reveals benefit data: up to 1,868 shekels monthly

The National Insurance Institute transfers child benefits in Israel every month, totaling billions of shekels, to approximately 1.3 million families, based on the principle that the state has an interest in contributing to the costs of raising the next generation.

However, when examining cumulative amounts—especially for low-income large families—a complex question arises: does universal support achieve its goal, or does it influence significant household decisions?

According to the current brackets for 2026, a family with one child receives 173 shekels, while a family with ten children receives 1,868 shekels per month. Additionally, the "Savings for Every Child" program adds a monthly amount that accumulates over the long term.

The debate surrounding the universal model divides economists. Supporters argue that the system is simple, avoids the complex bureaucracy of income testing, and provides basic, guaranteed assistance (noting that about 880,000 children in Israel live below the poverty line). Conversely, opponents argue that identical payments to every family, regardless of income level, waste resources that could be directed toward targeted assistance, such as daycare subsidies or work grants.

A comprehensive analysis published on the "Bizportal" website emphasizes that past shifts in benefit structures served as a natural experiment. Studies from previous decades, such as those by the Bank of Israel, indicated that benefit cuts incentivized workforce participation among parents in large families. Furthermore, a limited but specific impact on birth rates following fluctuations in benefit amounts was observed.

The primary challenge facing decision-makers today is creating a balanced model. On one hand, it must ensure a social safety net for children that is not marginal; on the other, it must prevent a situation where the accumulation of benefits becomes a significant alternative to labor income, thereby undermining the incentive for parents to improve their economic situation independently.