Israel's Income Gap: Top 10% Earn 6.8 Times More Than Bottom 10%

A new survey by the Central Bureau of Statistics reveals a significant income disparity in Israel, with households in the top income decile earning 6.8 times more than those in the bottom decile. In 2024, the average net monthly income for a household in the lowest decile was approximately NIS 7,280, while their expenses averaged NIS 11,900, resulting in a monthly deficit. Conversely, households in the top decile had an average net monthly income of about NIS 49,500 and spent approximately NIS 21,800. While the top decile's income is 6.8 times higher than the bottom, their expenses are only 1.8 times greater.

The survey indicates that the two lowest deciles spend more than they earn. The bottom decile faces an average monthly deficit of NIS 4,630, while the second decile's deficit is smaller, at NIS 580. From the third decile upwards, income consistently exceeds expenses, with the surplus growing significantly through the higher deciles. The top decile's income is more than double their expenses, providing funds for savings, investments, and loan repayments.

Overall, the average gross monthly income per household was NIS 27,173, with a net income of NIS 22,555. The median gross income was lower at NIS 20,540. Average monthly expenses, excluding the imputed rent for owned homes, were NIS 15,370, representing about 68% of net income. The Gini coefficient for income inequality decreased slightly to 0.333 from 0.349 in the previous survey.

The report also details how households are ranked into deciles, primarily using net income per standard person, which adjusts for household size. The top decile holds 22.4% of the total net income, while the bottom decile accounts for only 2.8%. Housing constitutes the largest expense category at 25% of consumption, followed by transportation and communication (18.4%) and food (17.9%). Homeownership rates are much higher in the top decile (79.5%) compared to the bottom (35.5%).