General elections were held in Israel on 29 May 1996. For the first time, the prime minister was elected on a separate ballot from the remaining members of the Knesset. The elections for Prime Minister resulted in a surprise victory for Benjamin Netanyahu, by a margin of 29,457 votes, less than 1% of the total number of votes cast, and much smaller than the number of spoiled votes. This came after the initial exit polls had predicted a Shimon Peres win, spawning the phrase "went to sleep with Peres, woke up with Netanyahu". Although Peres lost the prime ministerial vote – his fourth and last defeat as Labor leader – Labor emerged as the largest party in the Knesset, winning two more seats than the Likud–Gesher–Tzomet alliance.