Dei'ah veDibur - Information & Insight

A Window into the Chareidi World

28 Shevat 5761 - Febuary 21, 2001 | Mordecai Plaut, director Published Weekly








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Children's Allotments Not Effectively Updated
by S. Fried

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 child.

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.


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