Israel’s Treasury Revises Reserve Soldiers’ Economic Cost to 68,000 Shekels Monthly

New data from Israel’s Treasury Chief Economist, Shmuel Abramzon, reveals that the economic cost to the state of one month of reserve duty for a Jewish non-Haredi male aged 31 to 39 is approximately 68,000 shekels, significantly higher than the previous estimate of 54,000 shekels made in March 2024. For younger reservists aged 22 to 30, the cost rose from 33,000 to about 39,000 shekels per month. The main reason for this upward revision is the discovery that reservists who miss work earn substantially more than their non-reserving peers, with an average monthly income of 18,800 shekels compared to 13,300 shekels, a 42% difference.

The Treasury’s updated calculation uses 2023 income data to exclude bonuses and benefits related to extended reserve service. The analysis also highlights that 83% of those absent from work due to reserve duty are Jewish non-Haredi men, who represent only 36% of the workforce. Additionally, 75% of absences occur among those aged 25 to 44, compared to 43% in the workforce. The economic impact extends beyond the individual soldier, as about 70% of reservists live in households with children, often leading spouses to reduce their work hours, amplifying the financial burden on families.

The report notes that 13% of reservists are students, compared to 7% of non-reserving workers, indicating that prolonged reserve service may disrupt education and increase long-term personal and economic costs. Conversely, only 8% of reservists are self-employed, versus 14% in the comparable demographic, possibly due to the greater financial risks self-employed individuals face during extended absences.

It is important to clarify that the 68,000 shekels figure represents the broader economic cost to the economy, including lost productivity, diminished seniority and future earnings, and reduced spousal work hours, rather than direct reserve duty payments by the government. Since the war’s outbreak, the number of workers absent due to reserve duty has fluctuated with security developments, peaking at around 154,000 in November 2023, dropping to 28,000 in August 2024, rising again to 70,000 during escalations, falling to 16,000 by late 2025, and surging to 71,000 in March 2026 with the start of the "Roar of the Lion" war.