What is the poverty line?

The poverty line is drawn at "50 percent of the median disposable income." The median income is thought to represent a typical standard of living, because half of the population has less than the median, and half more. A poor family is one whose disposable income - after receiving wages and/or entitlements from the National Insurance Institute, and having paid taxes and health insurance - is half or less than half of the median income. In 2004, the poverty line for a single person was NIS 1,777. A couple was considered poor if its joint income was less than NIS 2,843; for a family of four its was NIS 4,548 and for a family of six, NIS 6,041. National Insurance Institute allowances are meant to supplement every needy citizen's income so that he or she will not fall below the poverty line. However, over the years allowances have eroded and been deliberately reduced, and many recipients remain well below the poverty line.

Allowances for the elderly and the disabled for a single person are, in fact, NIS 90 or NIS 110 higher than the poverty line (although last year they were NIS 130 and NIS 150 above the line respectively); however the guaranteed income allowance is NIS 440 lower than the poverty line since it was reduced in 2003. Guaranteed income for a couple is NIS 1,000 lower than the poverty line, and for a family of four it is NIS 2,300 lower than the poverty line.