In January 2001, the various allotments of the Bituach Leumi
were updated. A number of our readers noted that the
Children's allotments weren't updated. They feared that the
failure to update them stems from the opposition of the
Finance Ministry to the Law of Large Families which states
that upgrading of the allotments starts from the fifth
The spokesman of Bituach Leumi said this was not so. Chaim
Pitosi provided us with a detailed explanation of the method
of updating the allotments. He said: "The last time the
Bituach Leumi allotments were updated was in January 2001,
according to the Law of Bituach Leumi.
"On January of every year, most of the allotments are
updated according to the average income, as stipulated by
the Law of Bituach Leumi. Old age allotments, survivor
allotments, allotments for overall handicaps, income
insurance, are updated at special dates according to the
rate of increase of the wages. These allotments are
calculated according to the average wage, as stipulated by
the Law of Bituach Leumi.
"Children's allotments, though are updated, as stipulated by
the Law of Bituach Leumi, according to income tax points
which go according to the yearly price increase (inflation).
[Note: This is generally less than the average wage
increase.] The children's allotments were indeed calculated
anew in January 2001 according to the inflation rate of 2000
which was a mere 0.1%. The roundoff of the amount of the
allotment for one child hasn't changed, and is still 171
shekel. Allotments for families with a larger amount of
children were updated slightly, in addition to the updating
required due to the amendment of the new law which raised
the allotments from the fifth child and on.
In other words, the children's allotments weren't
effectively decreased or increased, except according to the
new amendment for large families. However, since inflation
was so low, there was no visible change. These allotments
will be updated once again in the event of inflation.