Israel to Expand Benefits for IDF Reservists

Photo Credit: IDF

IDF fighter in southern Lebanon.

Finance Minister Bezalel Smotrich and Defense Minister Israel Katz have announced a new plan to expand benefits for reserve service members and their families.

The plan was presented Wednesday to the ministerial committee on the reserve system, headed by Katz.

The outline, developed in a joint effort by the Defense Ministry and the Finance Ministry, includes an addition of approximately NIS 3 billion for steps to deepen recognition and assistance for service members, provide financial support for their families and strengthen employers who integrate reserve service members into the labor market.

The plan also includes the establishment of a new division in the Defense Ministry to handle discharged and reserve soldiers.

The new division will work in collaboration with the IDF and government ministries to promote legislation, government decisions, and collaborations with local governments and the private sector, in order to improve the system of rights and benefits for reservists.

New Economic Benefits for Reservists
The outline brings with it a number of new measures enshrining the status of reservists in Israeli society and the economy, while increasing recognition, focusing on career service members, and focusing on long-term goals.

1. Launch of a personal digital wallet to provide freedom of choice in realizing benefits:
For the first time, reservist fighters will be entitled to a benefits club that includes a personal digital wallet, which will be dynamically loaded based on the number of days the reserve fighters have served. Service members will be able to use the wallet for various government services, entertainment and leisure benefits, and additional purchases in accordance with regulations. The move is intended to reduce bureaucracy in the realization of benefits and make them accessible to all service members.

2. Tax credit points: For the first time, a benefit for the combat fighter system based on the duration of service.
For the first time in Israel, the government is granting income tax credit points solely to reservists who serve as combat fighters, based on the length of their service. Until now, reserve soldiers have not received a tax benefit for their service. Now, for the first time, they will be given fixed and graduated credit points, so that their net salary will be higher the more days they serve. This step constitutes significant economic recognition of the reserve fighters’ contribution and the effort they invest in defending the country.

3. Grants for employers: Another step to strengthen economic support for employers of service members.
As an additional step to compensate for the existing social security contributions and insurance premiums, financial grants will be given to employers who allow their employees to serve in the reserves without affecting their terms of employment. The grants will be determined according to the number of employees serving in the military and the number of days they have served. Beyond the recognition of the service members, this step provides clear incentives for employers to integrate reservists into the workplace and support them throughout their professional careers.

4. Commanders’ Grants: Unique Recognition for Commanders of the Combat Reserve System.
In recognition of the importance of commanders in the combat system, commanders’ grants will be awarded to reservists in command positions. These grants are intended to reward those who take on significant command responsibility on the battlefield and lead fighters in extended reserve service.