The Knesset on Monday approved a bill initiated by the National Insurance Institute, which would enable senior citizens to receive payment of their nursing benefits directly rather than through nursing companies.

The bill, which was approved by the Knesset Labor and Welfare Committee ahead of a final readings in the Knesset plenum, would be implemented on July 1 for a two-year period in four regions.

Participants in the pilot program would receive 80 percent of their NIS 2,500 budget directly. Currently, the nursing companies receive the NIS 2,500 and transfer NIS 1,500 to the seniors. The remaining NIS 1,000 is meant to pay for various social benefits in the nursing company, such as compensation, vacation pay and convalescence.

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The 23,000 foreign workers employed in nursing work in Israel receive less in salary than their Israeli counterparts, who number at about 58,000. Despite the differential wage, the nursing companies pick up the same sum from the National Insurance Institute for foreign as well as native nurses.

Moreover, the families of the senior citizens are expected to make up the unallocated funds from their own pocket in order to pay the caretakers salaries and due benefits.

The National Insurance Institute claims that the current practice lets nursing companies pocket at least 20 percent of the allocated funds, The companies say their profits are low and that the funds unallocated to seniors are used to pay the workers social benefits as well as wages and supervision.