Child Benefits

The National Insurance Institute of Israel has released data on the distribution of billions of shekels to 1.3 million families. The current system presents a complex dilemma for policymakers: how to ensure a safety net for children while maintaining incentives for parental employment.

About 1.3 million families receive child benefits for approximately 3.2 million children, with the state depositing 58 shekels per month into each child's savings fund. While 28% of children in Israel live below the poverty line, studies indicate that reducing benefits has encouraged labor market participation while having a limited impact on birth rates.