Rise in Israeli Child Allowances Set to Take Effect

YERUSHALAYIM -
View of the National Insurance Institute in Jerusalem. November 21, 2013. Photo by Meital Cohen/FLASH90
View of the National Insurance Institute in Yerushalayim. (Meital Cohen/Flash90)

As per the coalition agreements with the chareidi parties following the elections earlier this year in Israel, beginning Dec. 20, National Insurance Institute (Bituach Leumi) child allowances will be raised, including a retroactive refund for the last half year. This is an across-the-board raise for all Israeli children and was passed in the recent budget.

There will be two different payments: the regular monthly stipend, which will increase as per the coalition agreement, depending on the number of children in the family. This will be deposited each month, on the 20th.

In addition, there will be a one-time refund retroactive for the months of May through November of this year, which will be added to the December stipend.

Until the approval of the amended law, parents were given a stipend of NIS 140 per child. Once the law passed, that sum was to increase by NIS 10 a month, to NIS 150 for the first child, as well as a larger increase for the second, third and fourth children.

In addition, this coming January, families will receive a one-time payment of NIS 80 per child for the payments retroactive to the time when the government was formed in May 2015.

In addition to the stipends, in January 2017, a savings account will be opened for each child into which NIS 50 will be deposited every month. With the opening of the program, NIS 1,000 will be deposited, calculating retroactive payments from when the plan was approved in May 2015.

According to the amended law, a child will be able to withdraw the funds from the savings account at the age of 18, upon approval of one of the parents. If the child opts to do that, he will receive an additional grant of NIS 500; if he chooses to wait until age 21, he will receive a NIS 1,000 bonus.