Disability pensions will increase by 9.55% for more than 400 thousand citizens due to the raise in average wage in the economy

​National Insurance's estimate: disability pensions will increase in 2023 by 9.55% for over 400 thousand citizens due to the raise in average wage in the economy

General disability pension

The general disability pension for a single person will amount to NIS 4,054 (instead of NIS 3,700) and NIS 7,450 (instead of NIS 6,800) for a couple with 2 children.

The Research Administration of the National Insurance has run estimates based on macro assumptions, according to the average wage in the economy and the foreseeable increase induced by these elements on disability pensions. According to these estimates, the National Insurance relied upon section 2 of the National Insurance Law, which prescribes to take into account the average wage in the last 3 months, as well as outstanding payments such as: clothing and convalescence.

The general disability pension for a single individual will amount to NIS 4,054 instead of NIS 3,700. The pension for a couple, currently at NIS 4,892, will likely increase to some NIS 5,360.

A couple with one child receiving today a pension of NIS 5,846, will see it increase to some NIS 6,405. A couple with 2 children - who currently receive NIS 6,800, will see their pension increase by nearly NIS 7,405.

Although the foreseen average wage raise will stand at around 12%, we will need to subtract 2.45% since the year 2022 passed without a state budget, it has then been decided in an agreement with representative disabled people organizations to transfer these 2.45% of average wage that are currently frozen - to the benefit of expanding rights related to disability pensions.

In this agreement with the Ministry of Finance, and under the 2022 Arrangements Law, it is provided to subtract 2.45% when the increase in average wage will be actualized, after "withdrawing" the frozen assets in the last two years.

Disabled child and attendance allowances

Estimates for the disabled child and the attendance allowances will also increase and, instead of the NIS 2,229 paid today, the allowance will amount to NIS 2,442. In other words, it is expected that the general disability pension, disabled child allowance and attendance allowance will increase by about 9.55%.

The amount of disability pensions, either for an individual or a family, are directly influenced by the average wage and will fluctuate according to the soon expected raise.

However, other allowances provided by the National Insurance are linked to the consumer price index which has also risen by nearly 5.2%, and will be increased accordingly. Allowances linked to this index are, among others: old-age pension and survivors, income support, child allowance, alimony, etc.

We should underline that the index published on 16.2.22 is the determining index regarding the final index raise and its impact on allowances. Moreover, final data required for the calculation of the increase of disability pensions according to the average wage in the economy, will be transferred by the Central Bureau of Statistics in the next month of January - at that time only will the change rate be calculated in order to update the allowances.

The National Insurance : "The increase of disability pensions concerns over 400 thousand citizens who will see the amount of the allowance they are paid by the National Insurance, significantly increase following the rise of average wage in the economy. This increase will be all the more substantial considering that it has remained as is and unchanged for the last two years. In this period of time particularly, there is no doubt that the amount of the pension will bring aid and relief to those in need."