There are more than 1.7 million Israelis living beneath the poverty line, according to the 2012 poverty report released on Tuesday.
This marked an approximately 0.5 percent improvement from 2011, however Israel remained among the three bottom countries in the OECD's poverty index.
The report showed a 3% rise in the number of elderly Israelis living below the poverty line to approximately 23% or 180,000 people.
Some 440,000 families live below the poverty line, according to the report. Some 33.7% of Israeli children live under the poverty line, a 2% improvement from 2011.