Israel Pays Billions in Reserve Duty as War Extends
Translated & summarized from Bizportal by baba
The story in 5 lines · by baba
- Israel has paid 58 billion shekels for reserve duty since the war started.
- Nearly half of reservists have served more than 150 days.
- Extended service significantly impacts reservists' careers and businesses.
- The compensation does not cover all broader economic costs.
- Reserve duty has become a near-permanent fixture in the economy.
Israel has paid out 58 billion shekels in reserve duty compensation since the start of the war, according to a new report from the National Insurance Institute. This figure represents the largest expenditure item and highlights the significant impact of extended reserve service on the workforce and economy.
During the first ten months of the war, payments reached approximately 20 billion shekels. The substantial increase to 58 billion shekels is primarily due to the prolonged duration of service, with nearly half of reservists accumulating over 150 days of duty. Around 27% have served between 150 and 300 days, and an additional 20% have exceeded 300 days.
Self-employed reservists face even longer service periods, with about 28% serving over 300 days and 23% serving between 150 and 300 days. More than half of self-employed individuals who served have passed the 150-day mark. While the National Insurance Institute compensates for lost income, the ongoing demands of running a business while the owner is away for extended periods present significant challenges.
For salaried employees, the system involves employers continuing to pay salaries and receiving reimbursement. However, extended service can delay projects, hinder career advancement, halt training, and even lead to job role changes. The impact is particularly pronounced for reservists aged 20-30, who are in critical career-building years. The median age of reservists is 29.
The 58 billion shekel figure reflects direct financial compensation and does not encompass the broader economic costs, such as lost business opportunities, delayed projects, or extended study periods. Israel has expanded its payment package for reservists in recent years, including monthly payments during service to ensure families maintain cash flow. The report indicates that reserve duty has transitioned from a temporary wartime measure to a near-permanent fixture in the labor market and national budget, raising questions about the long-term professional trajectory of hundreds of thousands of reservists.
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