Reserve Soldier Service Costs Israeli Economy 68,000 Shekels Monthly per Individual

A new report by Shmuel Abramzon, Chief Economist at the Israeli Ministry of Finance, reveals that the economic cost of one month of reserve military service for a Jewish non-Haredi man aged 31 to 39 reaches approximately 68,000 shekels. This figure marks a significant increase from the previous estimate of about 54,000 shekels per month. For men aged 22 to 30, the updated cost is around 39,000 shekels monthly, up from the earlier estimate of 33,000 shekels.

The report highlights that the main burden of work absence due to reserve duty falls on Jewish non-Haredi men aged 25 to 44, who make up about 83% of those absent despite representing only 36% of the workforce. The study also identifies demographic differences among reservists: 13% are students compared to 6% among those not absent for reserve duty, 63% are fathers of young children versus 51% among non-reservists, and only 8% are self-employed compared to 14% of non-reservists. Additionally, reservists earn approximately 42% more than their counterparts who do not miss work for reserve service.

According to Bank of Israel calculations, the monthly cost of reserve service for about 60,000 soldiers currently serving amounts to roughly 2.3 billion shekels. The report emphasizes that the economic impact extends beyond workplace absence, affecting households, spouses, and the career and educational trajectories of reservists.