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Ongoing Story· Day 41

Israel's Upcoming Knesset Elections to Cost State Budget 4 Billion Shekels

16 developments

CalcalistPolitics

Israel Debates Costly Election Day Holiday Amid Calls for Reform

Translated & summarized from Calcalist by baba

BusinessNeutral tone

Hebrew · 1 newsroom

Israel's election day holiday, a tradition since 1949, is under scrutiny due to its significant economic cost, estimated at billions of shekels in lost productivity and wages. While intended to boost voter turnout, proposals to abolish or shorten the holiday are gaining traction, citing financial burdens and international comparisons. Alternative ideas include tying the paid holiday to actual voting or holding elections on weekends, but practical and privacy concerns remain.

The story in 5 lines · by baba

  • Israel's election day holiday costs the economy an estimated 2.5 to 2.7 billion shekels annually.
  • Proposals to abolish or shorten the election day holiday are increasing due to rising costs.
  • Some suggest tying the paid holiday to actual voting, a move supported by public opinion.
  • Israel is one of few democracies worldwide that holds elections on a weekday with a national holiday.
  • International comparisons show most democracies hold elections on weekends or weekdays without a holiday.

Israel's tradition of declaring election day a national holiday, known as "Shabaton," has been a cornerstone of its democratic process since the first elections in 1949. This tradition, enshrined in law, aims to allow citizens to vote without losing a workday, fostering a sense of civic holiday. However, recent election cycles, particularly between 2019 and 2022, have highlighted the substantial economic cost associated with this practice.

The economic impact is twofold. The Manufacturers Association of Industries estimates the cost of wages paid on election day at approximately 2.7 billion shekels (1.8 billion in the business sector, 860 million in the public sector). Concurrently, the Israel Democracy Institute (IDI), using a model from the Ministry of Finance's chief economist, estimates the loss in national product on election day at around 2.5 billion shekels, an increase from 1.7 billion in 2022. This calculation suggests a drop in daily product from 8.6 billion shekels on a normal day to 6.1 billion on election day.

These escalating costs have fueled proposals to abolish or reduce the election day holiday. In December 2019, MK Miki Zohar proposed amending the Basic Law: The Knesset to eliminate the Shabaton entirely, citing a cost of 5 billion shekels, a burden on employers, and a lack of proven impact on voter turnout. Arguments against the holiday also include the extended polling hours (7 a.m. to 10 p.m.) and the absence of early or mail-in voting options for the general public, which IDI researchers argue justifies the holiday.

Alternative proposals include shortening the holiday to a half-day, similar to a "holiday eve." This idea, first raised in 2008 and later adopted by United Torah Judaism, has led to multiple legislative attempts to shorten the holiday and open polls at 1 p.m. Another approach, proposed by former Finance Minister Moshe Kahlon in 2019, suggested canceling the holiday, holding school until noon, and opening polls from 2 p.m. to midnight. However, shortening the holiday presents practical challenges, such as the placement of many polling stations in schools, which could disrupt education or necessitate parents taking time off work.

A third path suggests tying the paid holiday to actual voting. Since 2006, numerous bills have proposed withholding pay from those who cannot prove they voted. A 2020 IDI poll indicated significant public support for this idea, with 69% favoring a holiday only for those who vote. However, IDI researchers caution that this could infringe on privacy and voting secrecy, potentially allowing employers to pressure employees not to vote.

Internationally, Israel is an outlier. Out of 104 democracies studied by the Pew Research Center, 60 hold elections on weekends. Another 28, including the U.S., hold elections on weekdays without a full holiday, though with some accommodations. Among OECD countries, Israel and South Korea are unique in holding elections on weekdays declared as official holidays. While South Korea maintains high turnout (around 75%), the U.S. has lower turnout (48%) despite voting on a Tuesday without a holiday. The tradition of a weekday election holiday in Israel, originating from the need to maximize voter participation, appears set to continue without broad political consensus for change.

CalcalistOther · Tel Aviv

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