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Minimum Wage Doesn’t Cover the Minimum Cost of Living: Report

A new report from Latet shows a significant increase in people living in poverty in 2024, with one in five families in Israel experiencing food insecurity

עגלה ריקה (צילום אילוסטרציה: Shutterstock)
(Illustrative photo: Shutterstock)
By Hadas Yom Tov

A recent report reveals that 28.7% of Israel’s population lives in poverty, with nearly forty percent of Israel’s children affected. These statistics reflect a significant rise compared to 2023, with approximately 150,000 more people and 40,000 more children now living in poverty. The Alternative Poverty Report, published last week by Latet, Israel’s largest nonprofit organization combating poverty and food insecurity, was presented during a special day in the Knesset dedicated to addressing the issue.

As the crisis deepens, Latet’s findings present a stark call to action for policymakers to prioritize combating poverty and supporting Israel’s most vulnerable populations.

According to Latet’s data, 680,500 families (21.1% of all families), and 1,075,500 children (34.1% of all children) in Israel experience food insecurity. Food insecurity is defined by the United Nations Food and Agriculture Organization as a lack of consistent access to safe and nutritious food necessary for proper growth, development, and healthy, active life. Among those affected, 325,700 families (10.1%) and 627,600 children (19.9%) are in a state of severe food insecurity.

The report sets a minimum and normative cost of living in Israel, calculated based on a basket of basic and normative goods and services for individuals and households consisting of two parents and two children. The basic basket includes only essential items, such as food, medicine, clothing, housing, and healthcare, excluding luxuries. According to this index, the minimum cost of living in Israel in 2024 is 5,355 shekels per person and 13,617 shekels per household per month. This represents an increase of almost 1,000 shekels per month per family compared to the previous year.

The minimum wage in Israel, set at 5,800 shekels per month, fails to cover the minimum cost of living for a household with two earners. This disparity is exacerbated by the average number of earners per household in Israel, which stands at 1.36. Based on this average, the minimum cost of living for a household is 1.7 times higher than the minimum wage income.

The disability allowance received by those considered severely disabled (4,291 shekels per month), received by approximately one-third of aid recipients, is approximately 20% lower than the minimum cost of living per person, leaving recipients unable to meet basic needs.

The report also highlights the impacts of war and poverty on personal resilience. Aid recipients were disproportionately affected, with over twice the rate of low personal resilience compared to the general population. Nearly half of aid recipients reported a deterioration in health since the war, compared to only 18% in the general population.

Children and the elderly were also hit harder by the war. Among elderly aid recipients, 60% were forced to forgo medication or medical treatment due to financial constraints. Among children receiving aid, 45% reported that their academic achievements suffered, compared to 14% among the general population, and 47% reported a decline in mental health, compared to 15% in the general population. Additionally, 85% of aid recipients had to forgo enrichment activities, school trips, and youth movement participation for their children due to financial limitations.

The report underscores the widespread public concern over the government’s handling of poverty. More than two-thirds of the public believes that the government is responsible for tackling poverty, but only 8% think the government is actually addressing the issue.

Latet operates as an umbrella organization for 210 partner organizations providing food assistance across Israel. Among the aid recipients of these organizations, 65% reported a worsening financial situation over the past year. Despite this, 94.2% of these partner organizations received no government assistance, and most reported a decline in donations.

This article was translated from Hebrew by Marina Levy. 

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