National Insurance Benefits to Rise in 2027, Affecting Millions

Millions of Israelis receiving benefits from the National Insurance Institute (Bituah Leumi) are set to see an increase in their payments starting in January 2027. The exact percentage of the update varies depending on the type of benefit and its legal linkage mechanism. Some benefits are indexed to the consumer price index (CPI), while others are linked to the average wage.

Estimates suggest that benefits tied to the CPI will rise by approximately 1.6% in January 2027, with a potential range between 1.2% and 2%, contingent on upcoming index publications. This projected increase is the lowest since 2021, when no rise was recorded for CPI-linked benefits. For example, a single elderly citizen's pension, currently NIS 1,838 per month, is expected to reach about NIS 1,867, an increase of roughly NIS 29. For couples, the pension is projected to rise from NIS 2,762 to NIS 2,806.

Other benefits will also be updated. A basic survivor's pension for a widow or widower, currently NIS 1,838, is expected to increase to approximately NIS 1,867. Income support for a single individual under 55 is forecast to rise from NIS 2,076 to NIS 2,109, and for a single parent with a child under 55, from NIS 3,478 to NIS 3,534. Child benefits will also see an increase, from NIS 173 to NIS 176 for the first child, and from NIS 219 to NIS 223 for the second through fourth child.

Additionally, the maternity grant for a first child, currently NIS 2,103, is expected to reach about NIS 2,137. The maximum daily reserve duty pay is projected to increase from NIS 1,730 to NIS 1,758, and maximum daily maternity pay from NIS 1,752 to NIS 1,780.

It is important to distinguish between CPI-linked benefits and disability benefits. Since 2022, general disability pensions, special services pensions, and child disability benefits are linked to the average wage, not the CPI. In January 2026, these saw a 3.4% increase, compared to 2.4% for CPI-linked benefits. For January 2027, disability benefits are estimated to rise by about 4%. A full disability pension for an individual, currently NIS 4,711, could reach approximately NIS 4,899, an increase of about NIS 188 per month.

The final update percentages will be determined by the CPI figures for October and November, with final amounts expected to be published near the end of December. The updates take effect on January 1, 2027, with the new amounts paid for January's benefits. All figures are estimates until official data is released. In a separate announcement, the National Insurance Institute stated that several benefit payments, including disability, elderly, survivor, mobility, long-term care, alimony, and work injury benefits, originally scheduled for November 28, will be advanced to Thursday or Friday of that week due to November 28 falling on a Saturday.