The National Insurance Institute cannot cut income support (welfare) payments to a recipient merely because he or she also receives regular financial support from family members, the Tel Aviv Labor Court has ruled.
The suit was filed by a single mother who quit her job as a vehicle engineer in order to stay home to raise her young twins. Her parents, retirees with modest pensions, began helping her financially in order to meet the basic needs of her family.
The claimant applied for income support from the NII, which decided to grant her NIS 3,182 a month in allowances.
Yet the NII also decided to look into her financial status, and found that her parents were depositing an average of NIS 2,300 a month into her bank account. In response, it decided to take back a total of NIS 10,000.
The woman appealed to NII, but the institution rejected her claim. She then filed a claim in the Tel Aviv labor court against the agency.
The NII argued that the funds from the claimant’s parents' should be considered income for the purpose of calculating her welfare allowance.
Judge Neta Ruth sided with the claimant. She ruled that the claimant was eligible for guaranteed income support and that the support from her parents should not be considered income for the purpose of determining her welfare eligibility.
The judge ordered the NII to pay the claimant any and all amounts it had withheld from her.