Elections in Israel are based on nationwide proportional representation. The electoral threshold is currently set at 3.25%, with the number of seats a party receives in the Knesset being proportional to the number of votes it receives. The Knesset is elected for a four-year term, although most governments have not served a full term and early elections are a frequent occurrence. Israel has a multi-party system based on coalition governments as no party has ever won a majority of seats in a national election, although the Alignment briefly held a majority following its formation by an alliance of several different parties prior to the 1969 elections. The legal voting age for Israeli citizens is 18. Elections are overseen by the Central Elections Committee and are held according to the Knesset Elections Law.
National elections for the Knesset must take place once every four years, though early elections have occurred more often and few governments have reached the four year limit. Early elections can be called by a vote of the majority of Knesset members, or by an edict of the President, and normally occur on occasions of political stalemate and of the inability of the government to get the parliament's support for its policies. Failure to get the annual budget bill approved by the Knesset by March 31 (3 months after the start of the fiscal year) also leads automatically to early elections.
Israel uses the closed-list method of party-list proportional representation; thus citizens vote for their preferred party and not for any individual candidates. The 120 seats in the Knesset are then assigned (using the D'Hondt method) proportionally to each party that received votes, provided that the party gained votes which met or exceeded the electoral threshold. Parties are permitted to form electoral alliances so as to gain enough collective votes to meet the threshold (the alliance as a whole must meet the threshold, not the individual parties) and thus be allocated seats. The low threshold makes the Israeli electoral system more favourable to minor parties than systems used in most other countries. Two parties can make an agreement so that both parties' sum of surplus votes are combined, and if the combined surplus votes amount to an extra seat, the extra seat goes to the party with the greater number of surplus votes.