On September 3, 2024, Finance Minister Smotrich presented his plan for the 2025 budget, which includes, among other measures, the freezing of the linkage between National Insurance benefits and the consumer price index. This decision effectively erodes these benefits and amounts to a significant cut.
In response, we sent legal correspondence to the Minister on September 29, 2024, urging him to withdraw the plan to freeze these allowances.
In the correspondence, Adv. Maskit Bendel emphasized that the National Insurance Institute’s subsistence allowances are intended to uphold the right to a basic and dignified existence, a fundamental aspect of human dignity enshrined in the Basic Law: Human Dignity and Liberty. Current allowances are already inadequate for ensuring such a standard of living; data from the National Insurance Institute shows that 54% of income support recipients and 40% of alimony recipients live in poverty. Many individuals relying on these benefits are forced to sacrifice essential items like medicine, food, or electricity.
Adv. Bendel argued that canceling the linkage of subsistence allowances to the index effectively constitutes a reduction in support. If inflation continues as expected while allowances remain fixed, recipients will be compelled to choose between basic necessities. The correspondence further asserts that, without any alternative mechanism for adjusting these allowances or providing additional support, this action is unconstitutional.