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The Knesset Immigration and Absorption Committee yesterday approved for preliminary reading a bill that would increase disposable income for needy Holocaust survivors.

The bill, which passed unanimously, states that payments from Germany would not be considered taxable income or liable for other government deductions. They would also not be considered income for the purpose of calculating National Insurance Institute pensions or public housing rental assistance.

The bill, which was proposed by MKs Marina Solodkin and Michael Nudelman (Kadima), would mean that survivors who receive compensation payments from Germany would no longer lose out on other government allowances or benefits as a result.

Nudelman said that last year he persuaded Housing and Construction Minister Meir Sheetrit to order an immediate cessation of the 8-percent deductions taken from the German compensation payments made out to survivors living in public housing.