The National Insurance Law (1954) grants the population a wide range of benefits which are provided by the National Insurance Institute (NII), an autonomous body operating under the aegis of the Ministry of Labor and Social Affairs. Its activities are financed by obligatory payments from employers, employees and self-employed persons, in addition to government budget allocations.

The government's income-maintenance policy is carried out by the NII with supplementary assistance to families and individuals whose income is below the determined minimum.

Universal child allowances boost family incomes, especially those with four or more children. An amendment to the National Insurance Law provides long-term care for elderly persons dependent on daily help, either at home or in residential facilities. The NII also administers Israel's national health insurance program.