1. Contents Distribution of Recipients Grounds for Income Support Conditions for Eligibility Current Processes Payments Population

2. Conditions for eligibility Both the claimant And the claimant’s spouse must meet ALL of the following conditions: –Minimum age - 20 years –Israeli resident for at least 24 months or a new immigrant residing in Israel for at least 12 months –A person unable to earn an income meeting the criteria determined by the law, and is not eligible for payment under any other law

3. Conditions for eligibility Cont. The following ARE NOT eligible for Income Support: –Soldiers –Members of Kibbutz –Owner of a car or one who uses a car regularly –Students in an institution of higher education or religious institution

4. Grounds for Income Support The Following grounds are subject to the employment test: –Unemployed – 90,600 –Permanently unable to be placed – 21,227 –Employed at low wage – 25,750 –A married mother or sole parent who has a child between the ages of 2-7 – 27,005

5. Distribution of Recipients Unemployed 125,299 Low Wage 25,750 Others 47,264 Unemployed 90,600 Low Wage 25,750 Others 81,963 Total Recipients – 198,313 As of August 2003Estimated for January 2004

6. Grounds for Income Support Cont. The following Recipients will not be included in the Program and are not subject to the employment test: –A man over the age of 65 or woman over the age of 60 that are not eligible for old age insurance – 216 –Suffering from a medical condition that inhibits them from working for more than 30 consecutive days And/Or caring for a sick family member (spouse, child, parent) – 3,180 –Undergoing vocational training – 2,755

7. Grounds for Income Support Cont. –Undergoing vocational rehabilitation or learning in ulpan (Hebrew lessons for new immigrants) – 1,253 –An orphan or abandoned child - 553 –A prisoner released after a prison sentence of at least 6 consecutive months - 341 –A convicted person serving a community service sentence - 457 –A prisoner under house arrest – 364 –A married mother or sole parent to a child under the age of 2 – 17,646

8. Grounds for Income Support Cont. –A pregnant woman (from the 13th week of pregnancy until the end of pregnancy) – 1,970 –Suffering from a drugs or alcohol addiction – 2,196 –A homeless person - 86 –A person undergoing rehabilitation from drugs or alcohol – 2,230 –A person in distress due to sudden disaster – 484

9. Current Process For Unemployed Local Branch Employment ServiceRegistration Payments according to attendance Vocational Rehabilitation Vocational Training Employment No Payment for 2 months Employment Unsuitable Employment Payments are made according to compliance Referral Non Compliance Referral

10. Current Process for low wage earners Local Branch Employment Service RegistrationReferral to additional or alternative employment Authorization that no additional or alternative employment has been found No payment for 2 months Payments according to cooperation Employment Income supplement ReferralNon Compliance

11. Age Groups Low WageUnemployment 0-29 = 10% 30-39 = 33% 40-49 = 35% 50-54% = 12% 55+ = 9% 0-29 = 20% 30-39 = 24% 40-49 = 28% 50-54% = 13% 55+ = 15%

12. Family Status Low WageUnemployment Single = 22% Single +1 = 36% Single +2 = 14% Couple = 2% Couple +1= 2% Couple +2 = 24% Single = 47% Single +1 =9% Single +2 = 2% Couple = 7% Couple +1= 5% Couple +2 = 25%

13. Citizens Vs. Immigrants Low WageUnemployed Veteran Citizens = 46% Immigrants = 54% Veteran Citizens = 72% Immigrants = 28% Immigrants – Since Jan 1996

14. Average Period on Income Support Total: 4.02 Years Unemployed: 3.68 Years Low Wage: 5.1 Years There is no restriction on the period of eligibility for income support as long as the Recipient meets the conditions for eligibility.

15. Payments Average monthly Salary: 6,964 NIS Minimum wage: 3,335 NIS Examples: Single: –Monthly benefit : 1,337 NIS –Income from which recipient is no longer eligible: 2,338 NIS

16. Payments Cont. Couple +2 children: –Monthly benefit: 2,239 –Income from which recipient is no longer eligible : 4,219 Single parent + 2 children: –Monthly benefit: 2,607 –Income from which recipient is no longer eligible: 5,014