7,300 shekel net at the bottom, 49.5 thousand at the top: check which decile you belong to

The 2024 Central Bureau of Statistics survey shows a decline in the Gini index to 0.333, but the average income from work eroded by 1.4% in real terms. The gap was closed by a jump in allowances and subsidies, whose share of income rose from 12.9% to 14.8%. The upper-middle class eroded: the share of the ninth decile fell from 16.1% to 15.5%. The wealth gap widened: the value of apartments in the top decile rose by 7.8%, in the bottom by only 1.9%. The reduction in inequality rests on temporary public money.

The 2024 Household Expenditure and Income Survey by the Central Bureau of Statistics presents a complex picture: the Gini inequality index fell from 0.349 to 0.333, seemingly an improvement, but the average income from work eroded by 1.4% in real terms compared to 2023. The state closed the gap with a jump in allowances and subsidies, which rose by about 15% in real terms to 4,022 shekels per month. About three-quarters of the nominal increase in gross income came from allowances. Net cash income rose by 1.3% in real terms to 22,555 shekels, partly due to a decrease in mandatory payments. The upper-middle class eroded: the share of the ninth decile fell from 16.1% to 15.5%, the sharpest in the distribution. The wealth gap widened: the average apartment value in the top decile rose by 7.8% to 4.27 million shekels, in the bottom decile by only 1.9% to 1.544 million shekels. The homeownership rate fell from 64.1% to 62.5%, and the average rent rose by 6.3% to 3,924 shekels. The top decile received almost twice as much in allowances as the bottom (4,912 shekels versus 2,505 shekels), likely due to the composition of reserve soldiers and evacuees. The analysis emphasizes that the reduction in inequality rests on temporary public money and not on a stronger labor market, and is therefore expected to reverse in 2025 with the VAT increase to 18% and the freezing of tax brackets.