National Insurance Officials Highlight Post-October 7 Budget Surge and Hostage Stipends
National Insurance Institute official Yrona Shalom discussed the rising deficit, surging compensation payments reaching 3.5 billion NIS, and lifetime stipends for terror victims and hostage survivors.
Yrona Shalom, Head of Disability and Rehabilitation at the National Insurance Institute (Bituach Leumi), addressed the national budget deficit, the surge in compensation payments since October 7, and allowances for hostages freed from captivity in an interview on 103FM.
Budget Deficit and State Obligations
Addressing the Ministry of Finance, Shalom emphasized the state's profound obligation to terror victims.
"The state owes these people in the truest sense of the word, and it will pay. There are many ways to fund this deficit, and the Treasury needs to budget us accordingly so we can provide optimal service."
She noted that the institution currently recognizes 87,266 individuals as victims of hostilities, with 40,000 granted disability status due to physical or psychological trauma. Official figures also account for 1,029 civilian fatalities, including 63 children and teenagers, alongside 88 foreign nationals. Furthermore, the statistics include 100 families that lost multiple members, numerous widows, and 1,216 orphans.
Compensation Payments and Rehabilitation
Detailing the staggering financial scope, Shalom revealed that annual compensation payouts escalated dramatically from 800 million NIS in 2023 to 2 billion NIS in 2024, and reached 3.5 billion NIS in 2025. These figures exclude separate rehabilitation expenditures totaling nearly 75 million NIS.
Regarding disability classifications, Shalom explained that about 50% of recognized disabled individuals have already been assigned permanent disability status, while younger claimants whose conditions might improve initially receive temporary classifications.
Support for Hostage Survivors
Shalom outlined special legislative measures designed to provide comprehensive support packages for hostage survivors, amounting to 9,000 NIS monthly. This baseline is augmented by extensive benefits, including vehicle and housing assistance, lifelong psychological care, and alternative therapies. Concluding on financial sufficiency, she stressed the importance of creating workplace incentives and safeguarding allowances to help survivors reintegrate into the workforce.
