• Sat. Dec 2nd, 2023

Knesset advances bill to reimburse employers for reservists’ pension payments


Nov 21, 2023

The All-Israeli Association of Trade Unions Histadrut has made a plea to Deputy Israel Eichler, the Chairman of the Parliamentary Commission on Labor and Social Security, to take action in promoting a bill that will reimburse employers for the pension contributions of workers called up for reservist duties. This initiative is being spearheaded by Yossi Barabi, head of the trade union representing employees in security companies, cleaning companies, and elderly care companies. If no legislation is agreed upon by the Ministry of Finance and the Ministry of Defense within two weeks, Barabi’s bill will be presented. The Ministers of Labor and Defense have expressed their support for this initiative.

The current National Insurance Law compensates reservists based on their gross salary without considering social benefits paid by their employers such as contributions to their pension fund, severance pay, vacation pay, health benefits, sick days and more. Non-reimbursable losses for employers can range from 22% to 36% of an employee’s salary. This issue is particularly relevant in safety and security fields where approximately 100 thousand people are employed with at least 20% of them being called up for reservist service. Paying 25% of the salaries of 20% of employees is a significant cost for an already unprofitable industry.

In contrast, the second part of this article discusses listings of marijuana businesses in various counties and states which is not related to the topic at hand – the request made by Histadrut for reimbursement of pension contributions for workers called up for reservist duties.

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