About two million Israelis, including roughly 900,000 children, are living below the poverty line, according to the National Insurance Institute’s 2024 poverty report published on Friday.

According to the report, child poverty stands at 28%, and the overall incidence in 2024 stayed similar to 2023, despite wartime disruption and rising costs, with approximately one million children facing food insecurity.

Poverty rates remain especially high among Arab and haredi (ultra-Orthodox) populations, who together account for 65.1% of people in poverty, nearly double their share of the population. Among non-haredi Jewish families, the poverty rate is 14%.

Modi’in Illit, Jerusalem, Beit Shemesh, and Bnei Brak ranked as Israel’s poorest cities. Poverty rates in the Jerusalem, North, and South districts exceeded the national average at 36.5%, 21.6%, and 22.3% respectively, while Tel Aviv and the Central districts had lower rates. 

Among cities with more than 80,000 residents, Modi’in Illit recorded a 48.2% poverty rate, followed by Jerusalem at 38.6%, Beit Shemesh at 36.3%, and Bnei Brak at 31.1%.

Israel’s 2024 poverty line is set at NIS 3,547 per person, up NIS 229 from 2023. The line is NIS 7,095 for a couple, and NIS 13,303 for a couple with three children. In 2024, 28.1% of Israelis experienced food insecurity related to economic factors, including 9.9% in very severe food insecurity, while 26% could afford only food that may harm health, down from 33.4% in 2023.

Some 27.8% of households cannot meet all monthly expenses. About 9% forgo medical treatment due to financial hardship, and 4.7% skip a hot meal at least once every two days. Roughly half of Arab households and 29% of haredi households report they cannot cover monthly costs.

Preliminary 2025 estimates based on partial data point to further deterioration. Net poverty incidence rose from 20.7% in 2024 to 21.0% in 2025, and child poverty from 28.0% to 28.8%. Poverty among families overall remains stable.

How Israelis reduce their poverty levels

Old-age and survivors’ benefits have the largest impact on reducing poverty, contributing 24.0%, followed by disability benefits at 13.9%. Income assurance and child allowances contribute 1.2% and 2.2%, respectively.

A 5.6% rise in disability-related benefits from January 1, 2024, increased their impact, while wartime grants paid by the NII reduced poverty in 2024 by 0.8%.

Poverty is particularly acute in large families. In 2024, poverty incidence among families with four or more children reached 41.4%, more than double the 17.8% rate in families with up to three children.

Government intervention reduced poverty among large families by 20.7%, a relatively modest effect, raising broader concerns given that Israel’s fertility is high by OECD standards.

Employment alone does not guarantee escape from poverty when wages are low. Poverty stands at 22.1% among single-earner families and 8.9% among two-earner families. At least one adult was working in 71.7% of poor working-age families in 2024.

The report called for coordinated government investment in employment, welfare, education, housing, and health, alongside infrastructure upgrades, better public transport, expanded vocational training, and lower-cost early childhood care. It framed the findings as a wake-up call for decision-makers and society to take sustained action.

Acting NII director-general Tzvika Cohen said poverty has remained broadly stable over multiple years, noting that war and cost-of-living pressures worsened an existing problem. “Without focused investment in children, young families, and social services, poverty in Israel will continue to pass from generation to generation,” he said. NII research and planning deputy director Nitsa Kasir added that the unequal economic burden demands investment in education, employment, and fair wages to close gaps and strengthen society.