Social Sustainability
#27Key Findings
Israel falls into the bottom ranks internationally (rank 27) with regard to social sustainability.
Education spending is higher than the OECD average as a share of GDP, but lower on a per capita basis. The country faces a significant teacher shortage. The school system is split between general, religious and Arab schools. Religious schools get more funding per pupil, while Arab schools receive less.
The basic income is insufficient to fulfill basic needs. Poverty rates are high among the country’s Arab and ultraorthodox populations. The healthcare system is centralized, and offers high-quality treatment. Pension benefits do not prevent poverty for many residents. Following the large wave of immigration from Russia, a significant share of the population lacks pensions.
There is no comprehensive gender equality strategy. The current government has reduced focus on the issue. Family policy includes 15 weeks of maternity leave with pay, as well as child allowances. Childcare is accessible and free from the age of three, but few subsidized slots are available for younger children. Immigration policy exclusively targets Jewish immigrants.
Education spending is higher than the OECD average as a share of GDP, but lower on a per capita basis. The country faces a significant teacher shortage. The school system is split between general, religious and Arab schools. Religious schools get more funding per pupil, while Arab schools receive less.
The basic income is insufficient to fulfill basic needs. Poverty rates are high among the country’s Arab and ultraorthodox populations. The healthcare system is centralized, and offers high-quality treatment. Pension benefits do not prevent poverty for many residents. Following the large wave of immigration from Russia, a significant share of the population lacks pensions.
There is no comprehensive gender equality strategy. The current government has reduced focus on the issue. Family policy includes 15 weeks of maternity leave with pay, as well as child allowances. Childcare is accessible and free from the age of three, but few subsidized slots are available for younger children. Immigration policy exclusively targets Jewish immigrants.
Graph View
Graph View
To what extent do policies and regulations in the education system hinder or facilitate high-quality education and training?
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Education policies are fully aligned with the goal of ensuring high-quality education and training.
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Education policies are largely aligned with the goal of ensuring high-quality education and training.
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Education policies are only somewhat aligned with the goal of ensuring high-quality education and training.
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Education policies are not at all aligned with the goal of ensuring high-quality education and training.
The Ministry of Education budget accounts for 14% of the national budget. According to an OECD report, total expenditure on primary and secondary educational institutions as a percentage of GDP in Israel is 6.4%, compared to the OECD average of 5.1% (OECD, 2023). However, in per capita terms, national spending on education in Israel is 13% – 37% lower than the OECD average. This discrepancy affects teachers’ salaries, which are 10% to 15% lower than the OECD average (Knesset Research Center, 2023a).
There is a significant shortage of educators at all levels. Since 2018, the number of teaching and education graduates has decreased. Only 70% of those who graduate enter the school system. Meanwhile, there has been an increase in the retirement of veteran teachers and a decrease in the entrance of young teachers. Additionally, the share of young teachers leaving the education system increased from 13% in 2018 to 21% in 2021 (Knesset Research Center, 2023b).
The school curriculum does not align with labor market demand. Additionally, there are very few lifelong learning opportunities. The Ministry of Education department responsible for adult education offers limited programs and has suffered severe budget cuts over an extended period.
The government has several programs aimed at recruiting highly skilled educators. These include excellence programs in university faculties and providing benefits to high-tech workers who become teachers. However, these programs are very exclusive and small. As a result, the number of graduates from these programs does not meet the need for highly skilled educators.
To improve the education level of existing teachers, various incentives are provided to those who complete a master’s degree. Additionally, secondary school teachers are required to hold a master’s degree. The Ministry of Education promotes various training programs for teachers and offers financial incentives for completing these trainings.
There are some classes and workshops on sustainable development; however, this is not integrated into the school curriculum.
Citations:
OECD. 2023. “Education at a Glance 2023: OECD Indicators.” https://www.oecd.org/education/education-at-a-glance
Knesset Research Center. 2023a. “Overview on the Education Budget.” https://fs.knesset.gov.il/globaldocs/MMM/9435721f-aadd-ed11-815b-005056aa4246/2_9435721f-aadd-ed11-815b-005056aa4246_11_20074.pdf
Knesset Research Center. 2023. “Teachers’ Shortage.” https://fs.knesset.gov.il/globaldocs/MMM/09f3dfaf-607c-ed11-8150-005056aac6c3/2_09f3dfaf-607c-ed11-8150-005056aac6c3_11_19858.pdf
There is a significant shortage of educators at all levels. Since 2018, the number of teaching and education graduates has decreased. Only 70% of those who graduate enter the school system. Meanwhile, there has been an increase in the retirement of veteran teachers and a decrease in the entrance of young teachers. Additionally, the share of young teachers leaving the education system increased from 13% in 2018 to 21% in 2021 (Knesset Research Center, 2023b).
The school curriculum does not align with labor market demand. Additionally, there are very few lifelong learning opportunities. The Ministry of Education department responsible for adult education offers limited programs and has suffered severe budget cuts over an extended period.
The government has several programs aimed at recruiting highly skilled educators. These include excellence programs in university faculties and providing benefits to high-tech workers who become teachers. However, these programs are very exclusive and small. As a result, the number of graduates from these programs does not meet the need for highly skilled educators.
To improve the education level of existing teachers, various incentives are provided to those who complete a master’s degree. Additionally, secondary school teachers are required to hold a master’s degree. The Ministry of Education promotes various training programs for teachers and offers financial incentives for completing these trainings.
There are some classes and workshops on sustainable development; however, this is not integrated into the school curriculum.
Citations:
OECD. 2023. “Education at a Glance 2023: OECD Indicators.” https://www.oecd.org/education/education-at-a-glance
Knesset Research Center. 2023a. “Overview on the Education Budget.” https://fs.knesset.gov.il/globaldocs/MMM/9435721f-aadd-ed11-815b-005056aa4246/2_9435721f-aadd-ed11-815b-005056aa4246_11_20074.pdf
Knesset Research Center. 2023. “Teachers’ Shortage.” https://fs.knesset.gov.il/globaldocs/MMM/09f3dfaf-607c-ed11-8150-005056aac6c3/2_09f3dfaf-607c-ed11-8150-005056aac6c3_11_19858.pdf
To what extent does the current policy approach in the education system hinder or facilitate equitable access to high-quality education and training?
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Education policies are fully aligned with the goal of ensuring equitable access to high-quality education and training.
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Education policies are largely aligned with the goal of ensuring equitable access to high-quality education and training.
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Education policies are only somewhat aligned with the goal of ensuring equitable access to high-quality education and training.
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Education policies are not at all aligned with the goal of ensuring equitable access to high-quality education and training.
All children in Israel are eligible for free public education from age three until 12th grade. The education system ensures equal access until 12th grade regardless of a child’s economic status (Knesset Research Center 2015).
Preschool teachers are qualified and supervised by the Ministry of Education. The preschool curriculum aims to prepare all children for primary education. Children from peripheral areas and localities with low socioeconomic status are also eligible for after-school programs. In other localities, after-school programs are partially subsidized by the central government and, in some cases, by the local authority.
Most daycare services for children aged under three are private. Some semi-public daycare services are supervised and subsidized by the Ministry of Labor. Low-income families pay subsidized tuition based on various criteria. Private daycare services are not supervised. Recently, the government introduced subsidies for children aged three and under who attend private daycare, although primarily through tax exemptions that benefit high earners.
Alongside the public education system, there is a private education system for ultraorthodox children. Some schools within this system are not supervised at all by the Ministry of Education, while are partially supervised. Boys’ schools that lack supervision do not teach mathematics or English. This contributes to severe inequalities, as graduates from these schools face challenges integrating into the labor market and society. The partially supervised schools offer minimal mathematics and English instruction, and their graduates also struggle in integrate into the labor market. Although girls’ schools also lack supervision, they do teach mathematics and English, and their graduates often take the general graduation exams, allowing them to enroll in universities. Notably, the current government has decided to increase funding for unsupervised schools, despite the refusal of such schools to accept any supervision or changes to their curriculum.
The regular education system is divided into three branches: general, religious and Arab. Pupils in religious schools receive preferential budgeting of approximately 30% more compared to pupils in general schools, while pupils in Arab schools suffer from reduced budgeting of about 9% less compared to pupils in general schools (Knesset Research Center 2023).
Opportunities for second-chance education exist predominantly at the local level. These programs, typically operated by nonprofit organizations and subsidized by the Ministry of Education, receive minimal funding. Universities also offer second-chance opportunities. For example, students can enroll for an additional year before their undergraduate studies, with their grades from exams taken during that year serving as a substitute for general graduation exams.
Citations:
Knesset Research Center. 2015. “The Education System in Israel (Hebrew).” https://m.knesset.gov.il/activity/info/mmmsummaries19/education.pdf
Knesset Research Center. 2023. “Data on Average Cost per Student by Legal Status and Supervision (Hebrew).” https://fs.knesset.gov.il/globaldocs/MMM/6935acd2-de94-ed11-8152-005056aac6c3/2_6935acd2-de94-ed11-8152-005056aac6c3_11_19881.pdf
Preschool teachers are qualified and supervised by the Ministry of Education. The preschool curriculum aims to prepare all children for primary education. Children from peripheral areas and localities with low socioeconomic status are also eligible for after-school programs. In other localities, after-school programs are partially subsidized by the central government and, in some cases, by the local authority.
Most daycare services for children aged under three are private. Some semi-public daycare services are supervised and subsidized by the Ministry of Labor. Low-income families pay subsidized tuition based on various criteria. Private daycare services are not supervised. Recently, the government introduced subsidies for children aged three and under who attend private daycare, although primarily through tax exemptions that benefit high earners.
Alongside the public education system, there is a private education system for ultraorthodox children. Some schools within this system are not supervised at all by the Ministry of Education, while are partially supervised. Boys’ schools that lack supervision do not teach mathematics or English. This contributes to severe inequalities, as graduates from these schools face challenges integrating into the labor market and society. The partially supervised schools offer minimal mathematics and English instruction, and their graduates also struggle in integrate into the labor market. Although girls’ schools also lack supervision, they do teach mathematics and English, and their graduates often take the general graduation exams, allowing them to enroll in universities. Notably, the current government has decided to increase funding for unsupervised schools, despite the refusal of such schools to accept any supervision or changes to their curriculum.
The regular education system is divided into three branches: general, religious and Arab. Pupils in religious schools receive preferential budgeting of approximately 30% more compared to pupils in general schools, while pupils in Arab schools suffer from reduced budgeting of about 9% less compared to pupils in general schools (Knesset Research Center 2023).
Opportunities for second-chance education exist predominantly at the local level. These programs, typically operated by nonprofit organizations and subsidized by the Ministry of Education, receive minimal funding. Universities also offer second-chance opportunities. For example, students can enroll for an additional year before their undergraduate studies, with their grades from exams taken during that year serving as a substitute for general graduation exams.
Citations:
Knesset Research Center. 2015. “The Education System in Israel (Hebrew).” https://m.knesset.gov.il/activity/info/mmmsummaries19/education.pdf
Knesset Research Center. 2023. “Data on Average Cost per Student by Legal Status and Supervision (Hebrew).” https://fs.knesset.gov.il/globaldocs/MMM/6935acd2-de94-ed11-8152-005056aac6c3/2_6935acd2-de94-ed11-8152-005056aac6c3_11_19881.pdf
Graph View
To what extent do existing institutions ensure equal access to essential services and basic income support for those in need?
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Existing essential public services and basic income support are fully aligned with the goal of ensuring equal access for those in need.
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Existing essential public services and basic income support are largely aligned with the goal of ensuring equal access for those in need.
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Existing essential public services and basic income support are only somewhat aligned with the goal of ensuring equal access for those in need.
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Existing essential public services and basic income support are not at all aligned with the goal of ensuring equal access for those in need.
The main agency tasked with managing social security benefits and subsidies for people in poverty in Israel is the National Insurance Institute (NII). In recent years, the NII has proactively attempted to inform eligible individuals of their rights and benefits. The institute was very active throughout the COVID-19 crisis and has remained so following the outbreak of Israel’s war with Hamas in October 2023. The NII has also established a special center to further increase take-up and inform individuals of their social rights. The Ministry of Finance, which is responsible for the income tax credit, has also taken a proactive approach, notifying people of their eligibility for the benefit and urging them to apply. However, the basic income paid to individuals and households is low, and has not kept pace with the rise in the average wage.
Israel’s public housing policy is very thin. There is very little public housing, and many properties require significant repairs and are located in peripheral areas where there are fewer job opportunities. The waiting list for public housing is very long, often taking several years.
The waiting list for public housing is composed of two types of populations: people in poverty and elderly individuals who immigrated from Russia in the 1990s. These two groups are on different waiting lists. Elderly immigrants from Russia are eligible for public housing or elderly care. Some of the elderly care facilities they are eligible for are run by the Ministry of Housing, but most are private.
While waiting for public housing, the two eligible groups receive rent assistance. However, due to Israel’s very high property prices, the amount of the benefit is, in most cases, insufficient.
Individuals receiving benefits from the NII are eligible for reduced electricity and water rates. In addition, the electricity company cannot disconnect their service if they do not pay their bills on time. They are also eligible for reduced public transport and city taxes.
There are no benefits related to digital services, and issues such as debt relief are discussed with an individual’s bank and are not under a government mandate.
Israel’s public housing policy is very thin. There is very little public housing, and many properties require significant repairs and are located in peripheral areas where there are fewer job opportunities. The waiting list for public housing is very long, often taking several years.
The waiting list for public housing is composed of two types of populations: people in poverty and elderly individuals who immigrated from Russia in the 1990s. These two groups are on different waiting lists. Elderly immigrants from Russia are eligible for public housing or elderly care. Some of the elderly care facilities they are eligible for are run by the Ministry of Housing, but most are private.
While waiting for public housing, the two eligible groups receive rent assistance. However, due to Israel’s very high property prices, the amount of the benefit is, in most cases, insufficient.
Individuals receiving benefits from the NII are eligible for reduced electricity and water rates. In addition, the electricity company cannot disconnect their service if they do not pay their bills on time. They are also eligible for reduced public transport and city taxes.
There are no benefits related to digital services, and issues such as debt relief are discussed with an individual’s bank and are not under a government mandate.
To what extent do existing institutions and policies ensure high-quality services and basic income support?
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Existing essential public services and basic income support are fully aligned with the goal of satisfying basic human needs.
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Existing essential public services and basic income support are largely aligned with the goal of satisfying basic human needs.
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Existing essential public services and basic income support are only somewhat aligned with the goal of satisfying basic human needs.
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Existing essential public services and basic income support are not at all aligned with the goal of satisfying basic human needs.
The basic income is insufficient to fulfill basic needs. It ranges from ILS 1,569 per month to ILS 4,990 per month. The current average salary is ILS 12,492 per month and the minimum wage is ILS 5,880 per month. The 2023 Alternative Poverty Report argued that the minimum cost of living for a family is ILS 12,900 per month.
Rent assistance for a family with three children, which is eligible for the basic income, is ILS 1,170 per month. The average rent for a two-bedroom apartment in the city center of Tel Aviv is about ILS 4,000 per month.
“Families are eligible for a 50% discount on their electricity bill. They are also eligible for a 50% discount on public transportation. There are no discounts or reduced rates for digital services or financial services.”
High poverty rates among the country’s Arab and ultraorthodox populations reduce public support for expanding assistance to poor families.
Rent assistance for a family with three children, which is eligible for the basic income, is ILS 1,170 per month. The average rent for a two-bedroom apartment in the city center of Tel Aviv is about ILS 4,000 per month.
“Families are eligible for a 50% discount on their electricity bill. They are also eligible for a 50% discount on public transportation. There are no discounts or reduced rates for digital services or financial services.”
High poverty rates among the country’s Arab and ultraorthodox populations reduce public support for expanding assistance to poor families.
Graph View
To what extent does current health policy hinder or facilitate health system resilience?
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Health policies are fully aligned with the goal of achieving a resilient health system.
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Health policies are largely aligned with the goal of achieving a resilient health system.
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Health policies are only somewhat aligned with the goal of achieving a resilient health system.
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Health policies are not at all aligned with the goal of achieving a resilient health system.
Israel’s healthcare system is highly centralized and digitalized and operates mainly through four health funds. The high level of centralization and digitalization facilitated effective monitoring of COVID-19 outbreaks, as well as vaccination and response efforts.
Strategically, Israel’s healthcare system is based on the 1994 State Health Insurance Law, which aims to provide accessible healthcare to all Israeli residents. To ensure the continued expansion of healthcare services and technologies, a special intersectoral committee under the auspices of the Ministry of Health meets annually to decide on additions to the healthcare services “basket” available to the Israeli public.
One of the main challenges facing Israel’s healthcare system, which has been further exacerbated by the COVID-19 crisis and Israel’s war with Hamas since October 2023, is the availability and diversity of public mental health services. Both crises increased the need for mental health services and the system is struggling to meet the demand. A significant step toward addressing this issue involved providing special grants for psychologists in the public healthcare system to boost the availability of their services and encourage them to work in the public rather than the private sector.
To offset the costs of an aging population, the Ministry of Health has developed a strategic plan with measurable goals and indicators to monitor the health situation of elderly people and relevant services. Among the programs being implemented are collaborative initiatives with local authorities to promote healthier lifestyles among elderly people. In addition, health funds proactively monitor the health situation, detecting chronic diseases, and improving rehabilitation facilities and services.
Strategically, Israel’s healthcare system is based on the 1994 State Health Insurance Law, which aims to provide accessible healthcare to all Israeli residents. To ensure the continued expansion of healthcare services and technologies, a special intersectoral committee under the auspices of the Ministry of Health meets annually to decide on additions to the healthcare services “basket” available to the Israeli public.
One of the main challenges facing Israel’s healthcare system, which has been further exacerbated by the COVID-19 crisis and Israel’s war with Hamas since October 2023, is the availability and diversity of public mental health services. Both crises increased the need for mental health services and the system is struggling to meet the demand. A significant step toward addressing this issue involved providing special grants for psychologists in the public healthcare system to boost the availability of their services and encourage them to work in the public rather than the private sector.
To offset the costs of an aging population, the Ministry of Health has developed a strategic plan with measurable goals and indicators to monitor the health situation of elderly people and relevant services. Among the programs being implemented are collaborative initiatives with local authorities to promote healthier lifestyles among elderly people. In addition, health funds proactively monitor the health situation, detecting chronic diseases, and improving rehabilitation facilities and services.
To what extent does current health policy hinder or facilitate achieving high-quality healthcare?
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Health policies are fully aligned with the goal of achieving high-quality healthcare.
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Health policies are largely aligned with the goal of achieving high-quality healthcare.
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Health policies are only somewhat aligned with the goal of achieving high-quality healthcare.
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Health policies are not at all aligned with the goal of achieving high-quality healthcare.
Israel’s healthcare system invests in preventive treatment. The “health basket” (i.e., basic services provided to the entire population) includes early check-ups for various types of cancer, a Papilloma vaccine and treatments for tobacco addiction, among other things. In the last couple of years, more preventive treatments have been added to the health basket and medicine basket (i.e., the drugs and technologies provided to all citizens).
Policies for adopting a healthy lifestyle are less developed; however, there are various programs and vouchers available to encourage beneficiaries to be more physically active.
One of the main problems facing Israel’s healthcare system is the waiting period for various healthcare services, such as MRI scans or appointments with specialist physicians. These issues are particularly severe in peripheral regions, where individuals can wait several months for an MRI appointment and over a month to see a specialist. Despite these delays, the services provided are of high quality.
The healthcare system is highly digitalized, which enables integrated treatment, and the flow of information between experts and healthcare facilities.
Policies for adopting a healthy lifestyle are less developed; however, there are various programs and vouchers available to encourage beneficiaries to be more physically active.
One of the main problems facing Israel’s healthcare system is the waiting period for various healthcare services, such as MRI scans or appointments with specialist physicians. These issues are particularly severe in peripheral regions, where individuals can wait several months for an MRI appointment and over a month to see a specialist. Despite these delays, the services provided are of high quality.
The healthcare system is highly digitalized, which enables integrated treatment, and the flow of information between experts and healthcare facilities.
To what extent does current health policy hinder or facilitate equitable access to high-quality healthcare?
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Health policies are fully aligned with the goal of achieving equitable access to high-quality healthcare.
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Health policies are largely aligned with the goal of achieving equitable access to high-quality healthcare.
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Health policies are only somewhat aligned with the goal of achieving equitable access to high-quality healthcare.
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Health policies are not at all aligned with the goal of achieving equitable access to high-quality healthcare.
There are differences in the availability of healthcare services between the center and periphery of the country. The average distance to the closest healthcare facility in the center is 29.7 km, while the average distance in the north is 133 km. The number of hospital beds is also lower in peripheral regions than in the center, as are waiting times for specialist services.
In 2018, the Ministry of Health issued a directive that health equity should be considered in all healthcare policymaking. The ministry has provided guidelines on promoting health equity when designing policies. Additionally, it created a database on health inequalities and gaps among various populations, which is periodically updated.
One of the barriers to equitable health treatment is the availability of expert physicians in peripheral areas. To address this issue, expert physicians working in these regions and specializing in fields where there is a shortage of physicians will be eligible for a special grant.
Equality in healthcare provision is somewhat hindered by the availability of private medical services, which operate within some semi-public hospitals, and are financed by private and semi-private insurance. These services and insurance plans mainly serve middle-class families and allow them, for example, to choose a surgeon or to receive medical treatments that are not included in the universal healthcare basket (Filc 2018).
Citations:
Filc, D. 2018. “Transformation and Commodification of Healthcare Services: The Israeli Case.” In A. Paz-Fuchs, R. Mandelkern, and I. Galnoor, eds. The Privatization of Israel: The Withdrawal of State Responsibility. 123-145. Palgrave Macmillan US. https://doi.org/10.1057/978-1-137-58261-4_6
In 2018, the Ministry of Health issued a directive that health equity should be considered in all healthcare policymaking. The ministry has provided guidelines on promoting health equity when designing policies. Additionally, it created a database on health inequalities and gaps among various populations, which is periodically updated.
One of the barriers to equitable health treatment is the availability of expert physicians in peripheral areas. To address this issue, expert physicians working in these regions and specializing in fields where there is a shortage of physicians will be eligible for a special grant.
Equality in healthcare provision is somewhat hindered by the availability of private medical services, which operate within some semi-public hospitals, and are financed by private and semi-private insurance. These services and insurance plans mainly serve middle-class families and allow them, for example, to choose a surgeon or to receive medical treatments that are not included in the universal healthcare basket (Filc 2018).
Citations:
Filc, D. 2018. “Transformation and Commodification of Healthcare Services: The Israeli Case.” In A. Paz-Fuchs, R. Mandelkern, and I. Galnoor, eds. The Privatization of Israel: The Withdrawal of State Responsibility. 123-145. Palgrave Macmillan US. https://doi.org/10.1057/978-1-137-58261-4_6
Graph View
How committed is the government to ensuring gender equality in all respects?
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The government is clearly committed to the goal of ensuring gender equality.
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The government is largely committed to the goal of ensuring gender equality.
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The government is only somewhat committed to the goal of ensuring gender equality.
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The government is not at all committed to the goal of ensuring gender equality.
There is no comprehensive strategy to achieve gender equality. Gender equality has not been declared one of the government’s official goals, nor has the government set any goals or measurable targets. Moreover, gender equality and the commitment to promote it have decreased since the current government came to power. The number of women in senior positions has significantly declined. Of the 34 government ministries, only one has a female general director, compared to 10 under the previous government. Additionally, senior politicians consistently attack gender equality in the army and the opening of more positions for women. However, despite these attacks, the inclusion of women in more senior army positions continues.
The current government established a special ministry to promote the status of women. However, this ministry was closed after less than a year, although this had little impact on the status of women, as the ministry lacked both funding and authority.
In the civil service, there is an affirmative action directive to increase women’s representation. A taskforce is also examining the barriers facing women in academia.
The current government established a special ministry to promote the status of women. However, this ministry was closed after less than a year, although this had little impact on the status of women, as the ministry lacked both funding and authority.
In the civil service, there is an affirmative action directive to increase women’s representation. A taskforce is also examining the barriers facing women in academia.
Graph View
To what extent does the current family policy approach support or hinder unpaid family care work?
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Family policies are fully aligned with the goal of creating the conditions for strong families.
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Family policies are largely aligned with the goal of creating the conditions for strong families.
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Family policies are only somewhat aligned with the goal of creating the conditions for strong families.
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Family policies are not at all aligned with the goal of creating family-friendly conditions.
Israeli family policy includes 15 weeks of maternity leave on full pay for employees who have been employed for the last 12 months, along with an additional 11 weeks of unpaid leave. For families with more than one child, the mother is eligible for an additional three weeks of paid leave. After six weeks, the second partner can replace the mother and take parental leave. The second partner is also eligible for three sick days after the birth of a child. The employer cannot fire a woman returning from maternity leave for 60 days following the end of the leave.
Parents have eight sick days to care for children and elderly parents. However, Israeli policies largely fail to promote shared responsibility. For example, the second partner can only take parental leave by replacing the first partner.
Childcare is accessible and available for children from the age of three, with mandatory free public education. For children under three years old, there are very few publicly subsidized childcare slots and those that do exist are provided by non-governmental organizations. These organizations face difficulties recruiting staff due to low wages, which also limits the number of available slots. Single-parent and low-income families are eligible for reduced tuition fees. Tuition for other families is relatively high but not as high as in private childcare centers. Most childcare for children under three is private. In some areas, there are waiting lists of several months for childcare. Tuition in private childcare centers is extremely high and can be 1.5 times more than in public childcare centers.
All parents receive a child allowance from the National Insurance Institute. These allowances are universal and automatic upon the child’s formal registration at birth. Therefore, their take-up is high. Additionally, working parents receive tax exemptions for children under the age of five.
Parents have eight sick days to care for children and elderly parents. However, Israeli policies largely fail to promote shared responsibility. For example, the second partner can only take parental leave by replacing the first partner.
Childcare is accessible and available for children from the age of three, with mandatory free public education. For children under three years old, there are very few publicly subsidized childcare slots and those that do exist are provided by non-governmental organizations. These organizations face difficulties recruiting staff due to low wages, which also limits the number of available slots. Single-parent and low-income families are eligible for reduced tuition fees. Tuition for other families is relatively high but not as high as in private childcare centers. Most childcare for children under three is private. In some areas, there are waiting lists of several months for childcare. Tuition in private childcare centers is extremely high and can be 1.5 times more than in public childcare centers.
All parents receive a child allowance from the National Insurance Institute. These allowances are universal and automatic upon the child’s formal registration at birth. Therefore, their take-up is high. Additionally, working parents receive tax exemptions for children under the age of five.
Graph View
To what extent does the current pension policy approach prevent poverty among senior citizens?
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Pension policies are fully aligned with the goal of preventing old-age poverty.
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Pension policies are largely aligned with the goal of preventing old-age poverty.
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Pension policies are only somewhat aligned with the goal of preventing old-age poverty.
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Pension policies are not at all aligned with the goal of preventing old-age poverty.
Each elderly citizen in Israel is eligible for a monthly allowance of ILS 2,337. Elderly citizens without an additional pension receive a supplementary benefit, bringing their total monthly allowance to ILS 3,237. Unlike in many other OECD countries, most elderly people’s income in Israel comes from private, not public, sources. Consequently, about 65% of elderly people continue to work past the official retirement age. Among those who do not work, 54% lack pension savings and thus depend on government support, with many falling below the poverty line (Macro 2021).
The average income of an elderly person is ILS 7,381 per year, while their average expenses amount to ILS 8,563 per year. One in five elderly citizens lives in poverty.
Following the large wave of immigration from Russia in the 1990s, a significant proportion of the population lacks any pension at all. Additionally, a sizable veteran population lacks pension savings. Mandatory pension coverage has only been in place since 2008 and applies exclusively to employed individuals. As a result, the pension savings of those in precarious jobs are low and their rights are sometimes compromised due to inconsistent payments (Lurie 2018).
Taken together, the existing pension system does not cover the basic needs of Israel’s elderly population. While the mandatory pension improves the situation for workers entering the labor market, it is insufficient for older people who did not have enough time to save for a pension, including immigrants who do not receive pensions from their countries of origin.
Citations:
Lurie, L. 2018. “Pension Privatization in Israel.” In A. Paz-Fuchs, R. Mandelkern, and I. Galnoor, eds., The Privatization of Israel: The Withdrawal of State Responsibility, 101–121. Palgrave Macmillan. https://www.palgrave.com/gp/book/9781137601568#otherversion=9781137582614
Macro-center for policy and economy – Elderly in Israel. 2021. https://www.macro.org.il/images/upload/items/33224296121214.pdf
The average income of an elderly person is ILS 7,381 per year, while their average expenses amount to ILS 8,563 per year. One in five elderly citizens lives in poverty.
Following the large wave of immigration from Russia in the 1990s, a significant proportion of the population lacks any pension at all. Additionally, a sizable veteran population lacks pension savings. Mandatory pension coverage has only been in place since 2008 and applies exclusively to employed individuals. As a result, the pension savings of those in precarious jobs are low and their rights are sometimes compromised due to inconsistent payments (Lurie 2018).
Taken together, the existing pension system does not cover the basic needs of Israel’s elderly population. While the mandatory pension improves the situation for workers entering the labor market, it is insufficient for older people who did not have enough time to save for a pension, including immigrants who do not receive pensions from their countries of origin.
Citations:
Lurie, L. 2018. “Pension Privatization in Israel.” In A. Paz-Fuchs, R. Mandelkern, and I. Galnoor, eds., The Privatization of Israel: The Withdrawal of State Responsibility, 101–121. Palgrave Macmillan. https://www.palgrave.com/gp/book/9781137601568#otherversion=9781137582614
Macro-center for policy and economy – Elderly in Israel. 2021. https://www.macro.org.il/images/upload/items/33224296121214.pdf
To what extent does the current pension policy approach hinder or promote intergenerational equity?
10
9
9
Pension policies are fully aligned with the goal of achieving intergenerational equity.
8
7
6
7
6
Pension policies are largely aligned with the goal of achieving intergenerational equity.
5
4
3
4
3
Pension policies are only somewhat aligned with the goal of achieving intergenerational equity.
2
1
1
Pension policies are not at all aligned with the goal of achieving intergenerational equity.
Current policies encourage people to continue working after the retirement age of 67. For each additional year of work, the old-age benefit provided through the National Insurance Institute increases. Since 2019, people receive an additional 2% to the old-age benefit for every year they pay into the insurance scheme, up to a maximum of 50%. Additionally, if a senior citizen decides to postpone eligibility for an old-age benefit, they will receive an additional 5% for each year.
The retirement age is currently 65 for women and 67 for men. Only after this age can people receive their pension and old-age benefits.
The pension system does not guarantee elderly people sufficient income following retirement, because pension payments are based on defined contributions not defined benefits. As a result, people who did not start saving early enough for their pensions or who did not save enough will not have sufficient income following retirement.
National Insurance Institute funding is insufficient and, unless this situation changes (e.g., an increase in payments or a curtailment of rights), the institute will run out of resources in the next 10–20 years (Koreh 2019).
Citations:
Koreh, Michal. 2019. “The Deficit Crisis in the National Insurance Budget Towards the Year 2027 - Description of the Causes, Analysis of the Consequences and Proposed Solutions” (Hebrew). Social Security 108.
The retirement age is currently 65 for women and 67 for men. Only after this age can people receive their pension and old-age benefits.
The pension system does not guarantee elderly people sufficient income following retirement, because pension payments are based on defined contributions not defined benefits. As a result, people who did not start saving early enough for their pensions or who did not save enough will not have sufficient income following retirement.
National Insurance Institute funding is insufficient and, unless this situation changes (e.g., an increase in payments or a curtailment of rights), the institute will run out of resources in the next 10–20 years (Koreh 2019).
Citations:
Koreh, Michal. 2019. “The Deficit Crisis in the National Insurance Budget Towards the Year 2027 - Description of the Causes, Analysis of the Consequences and Proposed Solutions” (Hebrew). Social Security 108.
Graph View
To what extent does the current policy approach hinder or facilitate the inclusion of migrants into society and the labor market?
10
9
9
Integration policies are fully aligned with achieving the sustainable inclusion of migrants in society.
8
7
6
7
6
Integration policies are largely aligned with achieving the sustainable inclusion of migrants in society.
5
4
3
4
3
Integration policies are only somewhat aligned with achieving the sustainable inclusion of migrants in society.
2
1
1
Integration policies are not at all aligned with achieving the sustainable inclusion of migrants in society.
In Israel, integration policy is targeted exclusively at Jewish immigrants who immigrate under the Law of Return. These immigrants receive Israeli citizenship upon arrival and are thus eligible for all social benefits provided to veteran citizens. Additionally, a comprehensive integration policy is coordinated by the Ministry of Immigrant Absorption. Each immigrant is eligible for free Hebrew classes for the first six months. The classes are offered either by the Ministry of Education or through private organizations via vouchers. Furthermore, more advanced classes are available to specific sectors, aimed at improving the language skills needed for employment as physicians or other professionals.
Each immigrant is also eligible for a vocational training voucher, which they can use to enroll in one of the many available private training programs. Immigrants who wish to become self-employed are eligible for a business loan, and several hours of guidance and consultation at entrepreneurship centers located across the country. For scientists, there are programs in which the Ministry of Immigrant Absorption pays the scientist’s salary for several years. Additionally, there are programs in which the ministry pays the salary of immigrants for six months at governmental departments and institutions.
The accreditation of skills acquired abroad falls under the responsibility of the Ministry of Education, which examines the academic degree. In addition, physicians must pass several exams to practice medicine. The ministry provides a preparation course for the exams and pays an allowance during the preparation time. Some parts of the exam can be taken in the immigrant’s native language. Exams are also mandatory for other professions, such as psychologists and architects. Accreditation in these professions is managed by the respective professional organizations.
Under the Law of Return, immigrants eligible to enter Israel must provide evidence that they, one of their parents, or one of their grandparents were Jewish. The spouse of an eligible immigrant under the Law of Return is also eligible to enter Israel and receive citizenship. However, a parent of an eligible immigrant is not eligible and must apply for permanent resident status, which is difficult to obtain.
Immigrants are eligible to vote upon arrival. In addition, the government supports various grassroots immigrant organizations that help immigrants integrate into society.
The number of immigrants coming to Israel each year is relatively small. As a result, the ministry has adopted a “one-on-one” approach, providing each immigrant with a tailor-made integration program and a contact person to guide them during their first year following arrival.
A special Ministry of Immigrant Absorption department is responsible for university students, and provides tuition support, assists with bureaucracy and organizes various social activities.
The ministry’s annual work plan outlines the strategic goals for the upcoming year and the measures to achieve these objectives. For example, in 2023, one of the ministry’s goals was to improve the initial integration of immigrants by increasing the percentage of immigrants who meet a ministry representative three weeks after their arrival.
Integration policies are coordinated by the Ministry of Immigrant Absorption and implemented by a range of ministries. Therefore, several interministerial committees handle various immigrant absorption issues.
While integration policies for immigrants with a Jewish background are well developed, the opposite is true for non-Jewish immigrants. Most non-Jewish immigrants to Israel enter illegally and the government largely refrains from processing asylum requests. Immigrants who enter the country illegally are eligible only for very basic medical cover, have limited social rights and do not receive any public support to integrate into the labor markets. Nevertheless, their children can enroll in public schools.
Each immigrant is also eligible for a vocational training voucher, which they can use to enroll in one of the many available private training programs. Immigrants who wish to become self-employed are eligible for a business loan, and several hours of guidance and consultation at entrepreneurship centers located across the country. For scientists, there are programs in which the Ministry of Immigrant Absorption pays the scientist’s salary for several years. Additionally, there are programs in which the ministry pays the salary of immigrants for six months at governmental departments and institutions.
The accreditation of skills acquired abroad falls under the responsibility of the Ministry of Education, which examines the academic degree. In addition, physicians must pass several exams to practice medicine. The ministry provides a preparation course for the exams and pays an allowance during the preparation time. Some parts of the exam can be taken in the immigrant’s native language. Exams are also mandatory for other professions, such as psychologists and architects. Accreditation in these professions is managed by the respective professional organizations.
Under the Law of Return, immigrants eligible to enter Israel must provide evidence that they, one of their parents, or one of their grandparents were Jewish. The spouse of an eligible immigrant under the Law of Return is also eligible to enter Israel and receive citizenship. However, a parent of an eligible immigrant is not eligible and must apply for permanent resident status, which is difficult to obtain.
Immigrants are eligible to vote upon arrival. In addition, the government supports various grassroots immigrant organizations that help immigrants integrate into society.
The number of immigrants coming to Israel each year is relatively small. As a result, the ministry has adopted a “one-on-one” approach, providing each immigrant with a tailor-made integration program and a contact person to guide them during their first year following arrival.
A special Ministry of Immigrant Absorption department is responsible for university students, and provides tuition support, assists with bureaucracy and organizes various social activities.
The ministry’s annual work plan outlines the strategic goals for the upcoming year and the measures to achieve these objectives. For example, in 2023, one of the ministry’s goals was to improve the initial integration of immigrants by increasing the percentage of immigrants who meet a ministry representative three weeks after their arrival.
Integration policies are coordinated by the Ministry of Immigrant Absorption and implemented by a range of ministries. Therefore, several interministerial committees handle various immigrant absorption issues.
While integration policies for immigrants with a Jewish background are well developed, the opposite is true for non-Jewish immigrants. Most non-Jewish immigrants to Israel enter illegally and the government largely refrains from processing asylum requests. Immigrants who enter the country illegally are eligible only for very basic medical cover, have limited social rights and do not receive any public support to integrate into the labor markets. Nevertheless, their children can enroll in public schools.
Graph View
How committed is the government to helping build the capacity to reduce poverty and provide social protection in low- and middle-income countries?
10
9
9
The government’s development cooperation strategy is fully aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
8
7
6
7
6
The government’s development cooperation strategy is largely aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
5
4
3
4
3
The government’s development cooperation strategy is only somewhat aligned with the goal of improving capacity-building in poverty reduction in low- and middle-income countries.
2
1
1
The government’s development cooperation strategy is not all aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
The agency responsible for international development is the Agency for International Development Cooperation (MASHAV). It is located within the Ministry of Foreign Affairs. The agency is tasked with developing and implementing foreign aid policy. It provides guidance and consultation to various countries on issues where Israel has a relative advantage, such as agriculture, healthcare, education, innovation and entrepreneurship, and community planning. The agency trains local personnel on these issues and provides advice. Since its establishment in 1958, it has provided guidance to more than 350,000 people (MASHAV, 2024).
MASHAV’s main task is to facilitate access to knowledge and technology, either through training or consultation, as well as attract leaders from various fields to train in Israel.
In healthcare, MASHAV focuses on capacity-building, urgent care medicine, trauma care and mass casualty incidents, areas where Israel has a relative advantage. Additionally, in 2022, Israel established an emergency hospital in Poland near the border with Ukraine to assist refugees fleeing the war with Russia.
All activities are promoted in collaboration with local organizations and local leadership.
The department operates based on the United Nation’s 17 goals for international development, set in 2015 (SDGs). These also serve as the unit’s strategic goals.
The programs are not frequently monitored. While MASHAV publishes an annual report, the report only highlights the department’s various activities and does not evaluate any programs.
Israel’s funding for aid and development is low compared to other OECD countries. On average, Israel allocates $200–$250 million per year, which is only 0.07% of its GDP – the lowest share among OECD countries (OECD). To expand its activities, MASHAV collaborates with various international aid organizations.
Citations:
Israel’s Agency for International Development (MASHAV). 2024. “MASHAV – Aid from Israel.” https://www.gov.il/BlobFolder/generalpage/mashav-brief/en/PDF_ABOUT-MASHAV-ENGLISH.pdf
OECD. “Israel’s Official Development Assistance (ODA).” https://www.oecd.org/israel/israels-official-development-assistance.htm
MASHAV’s main task is to facilitate access to knowledge and technology, either through training or consultation, as well as attract leaders from various fields to train in Israel.
In healthcare, MASHAV focuses on capacity-building, urgent care medicine, trauma care and mass casualty incidents, areas where Israel has a relative advantage. Additionally, in 2022, Israel established an emergency hospital in Poland near the border with Ukraine to assist refugees fleeing the war with Russia.
All activities are promoted in collaboration with local organizations and local leadership.
The department operates based on the United Nation’s 17 goals for international development, set in 2015 (SDGs). These also serve as the unit’s strategic goals.
The programs are not frequently monitored. While MASHAV publishes an annual report, the report only highlights the department’s various activities and does not evaluate any programs.
Israel’s funding for aid and development is low compared to other OECD countries. On average, Israel allocates $200–$250 million per year, which is only 0.07% of its GDP – the lowest share among OECD countries (OECD). To expand its activities, MASHAV collaborates with various international aid organizations.
Citations:
Israel’s Agency for International Development (MASHAV). 2024. “MASHAV – Aid from Israel.” https://www.gov.il/BlobFolder/generalpage/mashav-brief/en/PDF_ABOUT-MASHAV-ENGLISH.pdf
OECD. “Israel’s Official Development Assistance (ODA).” https://www.oecd.org/israel/israels-official-development-assistance.htm