What Is the Child Allowance?
The child allowance, known as קצבת ילדים (Kitzvat Yeladim) , is a monthly cash benefit paid by ביטוח לאומי (Bituach Leumi) (the National Insurance Institute) to every family with children in Israel. It is universal, meaning every resident family receives it regardless of income, employment status, or country of origin. As a new oleh with children, you are entitled to this benefit from the moment your aliyah is registered.
The allowance is paid on the 1st of each month directly to the mother's bank account by default, though families can request it be deposited to the father's account or a joint account. It continues until each child turns 18.
How much is the child allowance in 2026?
The child allowance amount varies based on the number of children in the family. Bituach Leumi periodically adjusts these figures for inflation (the amounts were frozen in 2025 and rose with the consumer price index in 2026). As of 2026, the monthly amounts are tiered:
- First child: NIS 173/month
- Second child: NIS 219/month
- Third child: NIS 219/month
- Fourth child: NIS 219/month
- Fifth child and beyond: NIS 173/month each
Total monthly examples: a family with two children receives approximately NIS 392/month (NIS 173 + NIS 219); a family with four children receives approximately NIS 830/month (NIS 173 + NIS 219 × 3). These amounts are modest, but over 18 years they add up to a meaningful sum, especially when invested wisely.
Contrary to a common misconception, the per-child amount is not flat: since 2015 the second, third, and fourth child each draw a higher rate than the first child, while the fifth child onward returns to the first-child rate.
Who is eligible for the child allowance?
To receive the child allowance, you must meet these criteria:
- Residency: Be a resident of Israel (your aliyah registration automatically qualifies you)
- Child's age: The child must be under 18
- Registration: Your child must be registered with the Israeli Population Authority (Misrad HaPnim). Children born in Israel are registered automatically at birth. For children who made aliyah with you, registration happens as part of the aliyah process.
There is no income test and no employment requirement. Whether you earn NIS 5,000 or NIS 50,000 per month, the allowance is the same. It is also not taxable income.
How do you start receiving the allowance?
If your children were born in Israel, the hospital files a birth notification and Bituach Leumi automatically opens a claim. You typically start receiving payments within 1-2 months of the birth without doing anything.
If you made aliyah with children, the process may require a manual claim. Visit your local Bituach Leumi branch with your Teudat Oleh, children's birth certificates (translated if needed), and your bank account details. Many olim find that the allowance begins automatically after aliyah processing, but check your bank statements in the second month. If payments have not started, file the claim proactively.
What is the Gemel Yeladim savings option?
One of the most valuable features of the child allowance system is the linked savings program called גמל ילדים (Gemel Yeladim). Instead of receiving the cash directly, you can direct a portion of the allowance into a long-term investment account for each child.
Bituach Leumi deposits NIS 58 per month per child into a savings account managed by a provident fund (Kupat Gemel). Parents can choose to add a matching NIS 58 per month from the allowance, which doubles the deposit to NIS 116 per month. The extra NIS 58 is taken out of the child allowance rather than added on top, so opting in trades current cash for a larger long-term balance.
The money is invested according to the track you select (stocks-heavy, balanced, or conservative) and grows tax-advantaged until the child turns 18. At that point, the young adult can withdraw the accumulated balance. Over 18 years with moderate market returns, even the base government deposit of NIS 58/month can grow to roughly NIS 25,000 to 30,000. With the doubled NIS 116/month deposit, the balance can reach NIS 50,000 to 60,000 or more, depending on market performance.
How do you choose or change your Gemel Yeladim fund?
By default, Bituach Leumi assigns a fund manager. However, you have the right to choose any licensed fund manager and any investment track. To change:
- Log into your Bituach Leumi personal account online, or call the Bituach Leumi hotline at *6050
- Navigate to the Gemel Yeladim section
- Select your preferred fund manager and investment track for each child
- Changes take effect from the following month
Fund performance and fees vary across managers. Over a full 18-year time horizon, lower-fee funds with a stock-oriented track have historically generated higher long-term results. Several comparison websites track Gemel Yeladim performance across all fund managers.
How has the child allowance changed over the years?
The child allowance has undergone significant changes over the decades. Understanding the history helps explain why older Israelis may give you different information about amounts:
- Pre-2003: The allowance was considerably higher, especially for larger families. Families with 5+ children received substantial monthly payments.
- 2003 cuts: Major austerity reforms (under Finance Minister Netanyahu) slashed child allowances significantly, reducing the per-child amounts and removing the progressive scaling.
- 2015: Partial restoration, including the introduction of the higher rate for the second through fourth child that still applies today.
- 2017: The Gemel Yeladim (Savings for Every Child) program was introduced, adding a long-term savings account alongside the cash allowance.
Where the money can go
Roughly NIS 173 to 219 per child is not going to cover major expenses. But treated as a long-term savings vehicle, it becomes meaningful. Here are common approaches:
- Maximize Gemel Yeladim: Opting in to double the deposit puts more into a tax-advantaged account, where 18 years of compound growth can transform modest monthly deposits into a real nest egg for your child. The trade-off is that the extra NIS 58 comes out of the cash allowance.
- Supplement monthly budget: Some families, especially during the initial adjustment period after aliyah, use the allowance to cover everyday costs. There is no shame in this, particularly while Sal Klita payments are still active.
- Dedicate to specific child expenses: Some parents funnel the allowance toward extracurricular activities (chugim), school supplies, or clothing costs.
Key Takeaways
The child allowance is modest but guaranteed and universal, and it comes with a long-term savings vehicle in the Gemel Yeladim program. Families that opt into the doubled deposit early give the money the longest runway to compound, and fund fees and the chosen investment track are the main levers on how much the account is worth at 18.
Kitzvat Yeladim is a universal monthly child allowance paid by Bituach Leumi to every resident family in Israel, regardless of income, employment, or country of origin. As of 2026 it is tiered: NIS 173 per month for the first child and NIS 219 per month for each of the second through fourth child, with the fifth child onward returning to NIS 173. It is paid into the mother's bank account by default until each child turns 18, is not taxable income, and you qualify automatically from the month your aliyah is registered. The linked Gemel Yeladim (Savings for Every Child) program is a long-term savings track: Bituach Leumi deposits NIS 58 per child each month, and you can add a matching NIS 58 from the allowance to double the deposit to NIS 116 per month.
As of 2026 the allowance is tiered: NIS 173 per month for the first child and NIS 219 per month for each of the second, third, and fourth child, while the fifth child onward returns to the NIS 173 first-child rate. So a family with two children receives about NIS 392 per month (NIS 173 plus NIS 219) and a family with four children receives about NIS 830 per month (NIS 173 plus NIS 219 three times). Bituach Leumi periodically adjusts these figures for inflation; they were frozen in 2025 and rose with the consumer price index in 2026. The amounts are modest, but over the 18 years a child is eligible they add up to a meaningful sum, especially if invested.
It depends. If your child is born in Israel, the hospital files a birth notification and Bituach Leumi opens the claim automatically, with payments usually starting within one to two months. If you made aliyah with children, the process may require a manual claim: visit your local Bituach Leumi branch with your Teudat Oleh, the children’s birth certificates (translated if needed), and your bank account details. Many olim find payments begin automatically after aliyah processing, but check your bank statements in the second month and file the claim proactively if nothing has arrived.
No. There is no income test and no employment requirement, so whether you earn NIS 5,000 or NIS 50,000 per month the allowance is the same. It is also not taxable income and has no effect on your tax obligations. The benefit is universal: every resident family with children under 18 receives it regardless of income, employment status, or country of origin.
Gemel Yeladim, officially the Savings for Every Child program, is the long-term savings plan linked to the child allowance. Bituach Leumi deposits NIS 58 per month per child into a provident fund (Kupat Gemel) account. You can choose to add a matching NIS 58 per month from your allowance, which doubles the deposit to NIS 116 per month; note that the extra NIS 58 comes out of the cash allowance rather than being added on top. The money is invested in the track you select and grows tax-advantaged until the child turns 18. Over 18 years with moderate market returns, the base government deposit alone can grow to roughly NIS 25,000 to 30,000, and with the doubled NIS 116 monthly deposit the balance can reach NIS 50,000 to 60,000 or more, depending on market performance.
Yes. By default Bituach Leumi assigns a fund manager, but you have the right to choose any licensed fund manager and any investment track. To change, log into your Bituach Leumi personal account online or call the hotline at *6050, navigate to the Gemel Yeladim section, and select your preferred fund manager and track for each child. Changes take effect from the following month. Fund performance and fees vary across managers, and over a full 18-year horizon lower-fee funds with a stock-oriented track have historically produced higher long-term results.
The allowance continues until each child turns 18 and then stops, regardless of whether the child enters army service. The Gemel Yeladim savings balance, however, remains available: it can continue to be invested until the young adult decides to withdraw the accumulated amount.
Generally yes, if the delay was due to administrative processing. Bituach Leumi will pay arrears for the period between your eligibility date and when payments actually begin. You also do not need a separate claim for each child: one claim covers all your children, and additional children are added as they are born or registered.
