In light of the continued repercussions of the war on Gaza, the Israeli Labor and Welfare Committee agreed to extend the financial support provided to employers to partially compensate them for the salaries of reserve soldiers who are called to military service.
According to a report by the newspaper “Kallest”, the government will continue to pay only 20% of the total wage of these soldiers until the end of 2025, a decision that sparked widespread criticism from the private sector, which considers this help insufficient and does not cover the real costs incurred by employers.
Excessive cost and limited compensation
This compensation has been provided since the beginning of the war on October 7, 2023, with a budget of 3.3 billion shekels (about 900 million dollars). With its extension for 2025, the estimated cost will increase to 1.2 billion shekels (about 325 million dollars).
Despite these large numbers, government support – according to Calist – is still much lower than the actual burdens borne by employers, as expert estimates indicate that the additional costs that are not covered in government support may reach 4 billion shekels (1.1 billion dollars) annually.
“When we take into account all financial obligations such as retirement insurance, savings funds, vacation dues, and holidays, the 20% that the government pays only covers a small part of the actual costs,” Lawyer Moria Brabi of the Industrial Union told the Calist website.
She added that “employers bear the greatest burden, and there are increasing concerns that many of them will start to avoid employing workers who serve the reserve forces.”
The absence of a long -term plan
Although the government provides this support as an emergency measure, the absence of a sustainable strategy sparked widespread criticism, especially with the escalation of reserve service for long periods.
The reserve soldiers were serving for intermittent periods, but as the war continued, they became required to spend up to 70 days annually in military service, which constitutes a great burden on employers.
“The current situation is not sustainable. In the past, the reserve soldiers were serving every 3 years, but now we are talking about longer and frequent service periods, which makes many companies hesitate to employ them due to financial burdens The result of their repeated absence. “
This problem has already led to a silent discrimination against the reserve forces, as some companies began to avoid employing them due to the frequent absence and high costs that are not fully compensated by the government, according to the newspaper.
Peruviation delays that hinder implementation
Despite the approval of the extension of the decision, it has not yet entered into force, as its activation depends on the signature of the Minister of Labor Yova Bin Tsour and Security Minister Israel Katz, which means that employers are still facing a period of financial uncertainty until the decision is officially passed, the newspaper says.
According to the sources of Kallest, the compensation calculation mechanism imposes additional restrictions, as the amount will be calculated based on the average salary in the last 3 months before military service, which may reduce compensation to some of the employees who have received promotions or increases in salaries recently.
The newspaper believes that while the government promotes this decision as a step to support operators, the data indicates that this support is not enough at all. As the reserve continues to summon, the financial burdens are expected to worsen on employers, which may lead to increased unemployment, slow economic growth, and the closure of some companies that are unable to withstand these pressures.