The amount of income from asset, which is taken into consideration for purposes of entitlement to an income supplement, is calculated as follows:
- Financial assets – income from financial assets will be calculated according to the rate of interestAverage of the daily yield of short-term loans as published by the Bank of Israel in the course of the two years that preceded the 30th of November of every year. and updated once a year.
- Real estate assets – income from real estate assets will be calculated according to their designated use: agriculture, residence or commercial.
The purpose of the amendment was to benefit income supplement claimants who have assets. According to the amendment, income from financial and real estate assets that is taken into account when examining eligibility for the income supplement will be calculated on a graduated scale based on the asset's value, family composition and claimant's age.
Rules for calculating income from a financial asset {as of Jan 01, 2024}
- An asset with value
that does not exceed NIS 39,224 for a single person, or NIS 58,836 for a couple, will not
affect eligibility for income support.
- The asset value taken
into account is the value after deducting the above amount.
- The rate of interest
(currently 2.87% ) divided by 12 is calculated on the remainder after subtracting
the sum not taken into account from the asset's full value.
- The sum of this
calculation is the monthly income taken into account when examining eligibility
for the benefit.
For an asset worth less than NIS 103,327, income is calculated using
the above rules.
For an asset worth NIS 103,327 or more, income is calculated
based on family composition, age and asset value.
There are three levels of asset value, with a different interest
rate at each level. The greater the
asset value above NIS 103,327, the higher the interest rate at each level.
The income taken into account for calculating the income supplement is the total income obtained from the interest rate for each
level cumulatively.
Rules for calculating income from a real estate asset:
Income from a real estate asset is calculated progressively based on asset value, asset designation or type, family composition and claimant’s age.
At your disposal, a calculator regarding the amount of income supplement to which you are entitled.