Israel 2023 Expenditure Survey Highlights Deep Income and Wealth Disparities
Israel's 2023 expenditure survey reveals bottom decile households face monthly deficits averaging 4,260 NIS, while top decile earners save over half their 46,500 NIS net monthly income.
The 2023 household expenditure survey reveals deep disparities between Israel's top and bottom deciles. Households in the bottom decile earn an average net monthly income of approximately 6,360 NIS while spending about 10,600 NIS, resulting in a monthly deficit of 4,260 NIS. Conversely, the top decile boasts an average net income of around 46,500 NIS against expenditures of 21,800 NIS, leaving a massive surplus for savings, investments, and loan repayments.
Income Versus Expenditure Disparities
Across the entire socioeconomic spectrum, the income gap between the top and bottom deciles stands at 7.3 times, while the expenditure gap is merely twofold. The survey indicates that the bottom two deciles spend more than they earn. From the third decile onward, the financial equation reverses: income exceeds expenses by roughly 7%, climbing to between 30% and 44% in the middle deciles, and more than doubling in the top decile.
"The top decile holds 22.1% of total net household income, whereas the bottom decile accounts for just 2.6%."
Methodological changes heavily influenced the latest figures. For the first time, incomes were extensively compiled using data from the Tax Authority and National Insurance Institute, pushing the average net monthly income per household to 21,606 NIS. Consequently, comparisons with previous self-reported surveys are limited. Average monetary consumption expenditure stood at 14,823 NIS, representing about 69% of net income.
Decile Rankings and Demographic Structure
Deciles are ranked according to net standard person income rather than total household earnings, accounting for economies of scale in larger families. For wage-earning households, the bottom decile threshold ends at 3,158 NIS net per standard person, the fifth decile at 7,912 NIS, and the top decile begins above 15,869 NIS.
Demographic differences further explain the economic gap:
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Bottom Decile: An average of 4.2 persons per household, with 0.9 earners. Around 60% of income stems from work, and 38% from government allowances and support.
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Top Decile: An average of 2.4 persons per household, featuring 1.7 earners. Work accounts for 82% of income, while allowances contribute only 5.6%.
Housing remains the largest expenditure item, absorbing 25.3% of consumption spending, followed by transport and communication at 18.6%, and food at 17.9%. Furthermore, 85.9% of top-decile households own their homes, compared to just 37.6% in the bottom decile.
