If you have kids ages six to 18, you are entitled to a new grant from the National Insurance Institute, known as bituach leumi.
Parents will be entitled to an additional credit point for each child between the age of six to 18 when the amount of the work grant given to a working father will be equal to the amount of the grant given to a working mother.
The Knesset plenum recently approved, in the second and third readings, the bill increasing credit points for parents paying income tax and expanding the work grant for 2023.
The bill proposes an increase in the work grant for both working fathers and self-employed fathers, equalizing it with the grant given to working and self-employed mothers. Additionally, the proposal suggests granting one additional credit point to both men and women for each child who has turned six but is not yet 18 in the tax year. Similarly, credit points for parents in single-parent families with children in the specified age range would also be increased. The implementation of this law is set for January 1, 2024.
The explanation for the proposal is that the grant is collected by virtue of the law to increase the participation rate in the labor force and reduce social disparities.
New bill seeks to address disparity between self-employed mothers, fathers
Currently, for working or self-employed mothers, the grant amount surpasses that given to working or self-employed fathers by 50%, assuming the father is not a single parent. To address this disparity, the proposal suggests equalizing the grant for working fathers with that of working mothers. Furthermore, self-employed fathers will now receive the same grant amount as self-employed mothers.
Additionally, women and men will be entitled to one additional credit point for each child who turned six years old in the tax year and hasn't yet turned 18.
The proposed amendment will mean that women with kids in this age range will be entitled to two credit points, and men will be entitled to one credit point. In a single-parent family as defined in section 40(b)(3), in favor of any child who has turned six years of age and not yet turned 18 in the tax year, the single parent will be entitled to two additional credit points.