Last update: 21.01.2025 | 18:23
Yesterday (Monday), the Knesset plenum approved in second and third reading the proposed National Insurance Law that seeks to amend the compensation mechanisms for reservists, with the support of 18 members of the Knesset and no opponents or abstentions. The Histadrut opposed the amendment on the grounds that it would harm reservists whose wages increased during service.
The amendments passed by the Knesset include an update of the minimum amount for a reservist from 310 shekels per day to 321 shekels (before the war the amount was 215 shekels), and an amendment to the method of calculating the remuneration for reservists who are self-employed for the years 2023 and 2024 so that they will be remunerated according to the best calculation in a way that prevents the creation of Debts as a result of the decrease in business income during the service period.
The bill also seeks to correct a distortion created due to the prolongation of the war: reservists who work at the same time as their reserve service, are entitled to compensation for reserve days as well as salary payment. As a result, their fixed salary is “inflated” because it is also based on the reserve rewards, and accordingly their reserve rewards are increasing every month sometimes by tens of percent. The Ministry of Finance asked to limit this increase to up to 20% of the salary.
The Histadrut opposed this amendment on the grounds that it might prevent the updating of reserve benefits for employees whose wages increased as a result of changes in their working conditions, collective agreements or seniority increases and not as a result of working concurrently with the reserves. The Histadrut claim that the law creates an unclear mechanism in which employees or employers will have to prove that their wages have increased by more than 20%, while those who do not submit the required forms will be found ‘between the chairs’ without compensation. This move is expected to affect a wide section of the working population – employees, self-employed and students.
According to the Director General of the Trade Union Division in the Histadrut, Adam Blumenberg: “Instead of finding budgetary sources that are based on reducing the costs of coalition agreements and closing unnecessary government offices, they choose to harm a broad public who donates their time and even risks their lives.” Blumberg, who also serves as Vice President of Economics and Policy at the Histadrut, added : “Precisely during this period, the State of Israel should also incentivize reserve servants who leave the Everything is behind them and they are going to fight for our sake, and on the other hand to incentivize the employers to keep the jobs.”
