Israel's National Insurance Institute Disburses Billions in War-Related Benefits

Over the past three years since the October 7th attacks, Israel's National Insurance Institute (Bituah Leumi) has paid out billions of shekels to hundreds of thousands of citizens affected by the ongoing conflict. These payments encompass a wide range of support, including benefits for reservists, evacuated residents, and those impacted by physical and psychological trauma.

Reservists received a significant portion of the funds, with 58 billion shekels disbursed in continuous monthly payments. The labor market also saw substantial government expenditure, with 4.2 billion shekels allocated for unemployment and temporary work suspension benefits across three operational phases. During Operation "Iron Swords," 210,000 unemployed individuals received 2.5 billion shekels. Operation "Lion's Roar" saw 196,000 people receive 1.7 billion shekels, and Operation "Like a Lion" provided approximately 500 million shekels to about 100,000 individuals. Additionally, 1.2 billion shekels were distributed as special grants to 74,000 workers to aid their return to employment.

The war also led to significant population displacement, with over 5 billion shekels provided as housing grants to 190,000 evacuated residents. Residents from the south received 1.3 billion shekels for 131,000 individuals, while 63,000 evacuees from the north were allocated 3.8 billion shekels. Upon their return home, 110,000 people received 1.42 billion shekels in return grants, and another 272 million shekels were paid as compensation in lieu of unemployment benefits.

The most severe consequences of the war are reflected in health and life-related payouts. Families of hostages, the bereaved, and victims of hostile actions received over 9 billion shekels, with payments increasing from 800 million shekels in 2023 to 3 billion shekels this year. Bituah Leumi is currently processing 87,286 individuals recognized as victims of hostile actions, with 84,000 receiving emergency financial aid totaling 662 million shekels.

Of the over 40,000 individuals officially recognized as disabled, the vast majority, 34,878, suffer from psychological trauma, significantly outnumbering the 3,171 with physical injuries. The state has allocated over 750 million shekels for rehabilitation expenses. The data underscores that the war's primary impact on citizens' well-being has been psychological.