Parental Rights: Birth Grant, Maternity Pay and Child Allowance

A birth is a joyful event — and an expensive one. What many people do not know is that from the moment of birth an entire package of financial entitlements opens up: a one-off grant, a monthly payment during maternity leave, an ongoing monthly benefit, and a savings account opened automatically for every child. Some are paid automatically; others require you to apply.

This guide maps every financial entitlement around birth and parenthood in one place: who qualifies for each, how much money is involved, and how to claim it.

Disclosure: The information in this guide is provided as an educational aid only and does not constitute advice. Benefit and grant amounts are updated annually according to the index — verify the exact figures with the National Insurance Institute. Any action you take is your own responsibility.

The map of entitlements — an overview

Before the detail, here is the whole picture for a young family:

Birth grant

The birth grant is a one-off payment from the National Insurance Institute intended to help with the initial costs of the birth. It is paid automatically — no application is needed — within about a month of the birth, into the bank account where child allowance will be paid.

The amount depends on the birth order of the child in the family, as of 2026:

Amounts are updated annually according to the index. The higher figure for twins recognises the greater cost of a multiple birth.

Maternity allowance

Maternity allowance (dmei leida) is probably the most significant financial component. It is a payment from Bituach Leumi compensating a parent who worked before the birth, whether employed or self-employed, for the income lost during maternity leave — effectively a salary from the state while you are at home with the baby.

Entitlement and the amount depend on the period of work and National Insurance contributions before the birth, and the payment is calculated from the previous salary, up to a ceiling. The more months you worked and contributed, the longer the entitlement period.

Employed mothers usually receive the payment semi-automatically, on the basis of the employer's report, while self-employed mothers generally need to submit a claim.

An important point: self-employed women are also entitled to maternity allowance, provided they met the National Insurance contribution conditions. Many are unaware of this. See also the self-employed section.

Maternity leave (birth and parenthood period)

Maternity leave is the protected period of absence from work around the birth. The first part of it is paid, through maternity allowance, usually around 15 weeks for those with full entitlement, after which it can be extended without pay. During the leave there is protection against dismissal, along with associated rights.

Fathers are entitled too: a partner can replace the mother for part of the leave, usually from the seventh week, or take a short period of leave alongside her. This is an entitlement many families never use. Maternity leave also touches the tax world — for instance a tax refund for a year that included unpaid leave.

Child allowance

Child allowance is an ongoing monthly payment, made automatically to every parent for each child until age 18. No application is needed — it arrives in the account where the birth grant was paid.

The amount per child depends on the number of children and the birth order, as of 2026: 173 ₪ for the first child, and 219 ₪ for each of the second through fourth children. Amounts are updated according to the index. The more children, the larger the total monthly benefit.

Savings for Every Child

Alongside child allowance, the state deposits a monthly sum into Savings for Every Child — a long-term savings programme opened automatically for every child receiving child allowance.

Parents can choose the managing institution and the investment track, and can even double the monthly deposit out of the child allowance. The savings accumulate until age 18, and under conditions until 21, earning returns across the years.

This is a savings opportunity worth not ignoring: choosing the right track is worth real money over eighteen years. See the logic of long-term investing in the capital market.

Further benefits for parents

Beyond the central components, several associated entitlements are worth knowing: tax credit points for parents of young children, see credit points; subsidies for day care and after-school care subject to income and employment tests; and further benefits for single-parent families, see single parents. Anyone meeting several definitions may claim through several routes simultaneously.

How to claim — the order of operations

Some entitlements are automatic and some require initiative. Here is the logical order.

First, the birth grant and child allowance are paid automatically — simply confirm your bank details are up to date with Bituach Leumi. Second, maternity allowance — employed mothers should confirm the employer reported; self-employed mothers should submit a claim. Third, maternity leave — coordinate with the employer and Bituach Leumi. Fourth, Savings for Every Child — choose a managing institution and track, and do not leave the default unexamined. Fifth, check the associated benefits: credit points and childcare subsidies.

Timeline: what arrives and when

Around the birth, at the hospital — the hospitalisation grant is paid directly to the hospital. You need do nothing.

Within about a month of the birth — the one-off birth grant arrives automatically in your account.

During maternity leave — maternity allowance is paid, to those who worked before the birth.

From the month after the birth onward — the monthly child allowance begins, and Savings for Every Child is opened alongside it.

Later — the entitlements requiring initiative: choosing a savings track, childcare subsidies on returning to work, and marking credit points.

Understanding the timeline helps confirm that each payment actually arrived, and to act if something has stalled.

Common mistakes by new parents

1. Not updating bank details with Bituach Leumi, which delays automatic payments.

2. A self-employed mother not submitting a maternity allowance claim — forfeiting a significant sum.

3. Not using the father's entitlement to part of the maternity leave.

4. Ignoring Savings for Every Child — not choosing a track leaves the money in a suboptimal default.

5. Not marking parental credit points on Form 101 — unnecessary tax.

6. Missing childcare subsidies — an entitlement conditional on applying and on income tests.

Summary — do not leave money on the table

The entitlements around birth and parenthood are among the most significant available, and among the easiest to claim. Some arrive automatically, but others — maternity allowance for the self-employed, the father's entitlement, choosing a savings track, childcare subsidies, credit points — require you to act. A few minutes of checking is worth thousands of shekels.

Continue with whatever is relevant to you: update your details with Bituach Leumi, check the credit points due to you as a parent, and see further entitlements by population in the benefits section. We provide the knowledge — the claiming is in your hands.