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2024 Minimum Wage and National Insurance Increases

The minimum wage is expected to jump to NIS 5,880 in April 2024, the National Insurance benefits will also increase.

The minimum wage is expected to increase by 5.6% in April 2024, up NIS 308.25 from 5,571.75to NIS 5,880 per month. In addition, the National Insurance benefits will be adjusted already this month (January) in accordance with the Consumer Price Index increase and the average wage in the economy, depending on the type of benefit. These are significant increases in both the minimum wage and allowances.

The mechanism for raising the minimum wage in Israel

By law, the minimum wage in Israel is updated once a year, so that every April it will be no less than 47.5% of the average wage in the economy, as determined on January 1 of that year.

A higher minimum wage is not established by hourly order.

Minimum hourly wage

According to the instructions of the Ministry of Labor, and in accordance with the provisions of the general collective agreement to shorten the work week from 2018, the hourly minimum wage must be calculated by dividing the monthly minimum wage by 182. Accordingly, with the increase in the monthly minimum wage to NIS 5,880 per month, the hourly minimum wage is expected to stand at NIS 32.3 per hour beginning in April, 2024.

The changes in National Insurance allowances

The disability benefits that will increase, which include the “general disability” benefits, “special services” and the “disabled child” benefit, are the only benefits linked to the average wage in the economy.

Beginning in January 2024, National Insurance disability benefits will be adjusted by the average salary increase of 5.6%.

A general disability allowance in the degree of complete inability to earn income will amount to NIS 4,291, an increase of NIS 228 compared to last year at NIS 4,063.

In a situation of disability in the degree of full earning capacity with the addition of a spouse (who is not disabled) from now on the eligible person will receive NIS 5,673, a NIS 300 increase over the 2023 benefit of NIS 5,373.

A special services allowance intended for people with a more severe disability also increases according to the average salary in the amount of between NIS 95 and NIS 520 depending on the percentage of disability and difficulty.

The benefit for a “disabled child” is also increasing:

  • For a child with 100% disability the benefit will increase from NIS 3,295 to NIS 3,479. This is an increase of NIS 184.
  • Supplement for a child with a disability who is also ventilated will increase from 9,293 to NIS 9,813 – an increase of NIS 520.

Senior citizen allowances, residuals, income support, maternity, and child allowances, as well as savings for each child, are linked to the index and the amounts of these allowances starting from January 2024 – will increase at a significantly lower rate.

A senior citizen’s allowance for an individual will increase from NIS 1,680 to only NIS 1,736. For those aged 80+ there is an additional amount of NIS 98.

For a single senior citizen with a spouse who does not receive old age pension, the senior citizen’s pension will increase from NIS 2,525 to NIS 2,609, an increase of NIS 84.

Survivors’ pension (widower, widow, and orphan of a resident of Israel who was insured and paid social insurance according to law) will increase proportionally in amounts between NIS 39 and NIS 84 depending on the family composition.

The nursing allowance will not change at all and the amounts will remain as they were, ranging from NIS 738 to NIS 6,437 in a severe nursing situation (level 6). It should be noted that nursing benefits can be provided in money but also in various medical services such as: nursing care workers, laundry services, distress buttons and more.

Children’s allowances and savings for each child will increase by a few shekels, the increase does not even exceed the amount of 10 shekels.

Maternity allowance will also increase based on the index and not according to the average salary and maternity allowance:

  • For the first child it will increase from NIS 1,923 to NIS 1,986 in 2024 – an increase of NIS 63.
  • Maternity allowance for twins will increase by NIS 317, up from NIS 9,613 in 2023 to NIS 9,930 in 2024.

Income Security Allowance:

  • Until the age of 55, the Income Security Allowance will increase between NIS 62 and NIS 122 depending on the family situation.
  • From age 55 to retirement age, the amounts are indeed higher, but the increase ranges from NIS 79 to NIS 159 depending on the situation and family composition.

The information in this article was originally published by Gad Lior on the YNET website on January 3, 2024. It has been translated and adapted for an English-speaking audience.

 

Tzvi Szajnbrum was born in Brazil in 1957 and made Aliya (immigrated) to Israel in 1977. He is a licensed Attorney & Notary and professional mediator.

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