The Minister of Finance and the Ministry of Defense signed an agreement today that will form the basis of the Ministry of Defense and the IDF’s multi-year planning.
Under the agreement, compulsory military service will be shortened differentially, in accordance with security needs and the nature of the role in question. In 2030, the average length of service will be 28 months. A full period of service will be defined as 24 months, and will be the same for men and for women. The ministries’ announcement says that the length of service for the different roles will be set later. Earlier release will enable discharged soldiers to begin their civilian careers earlier, with significant consequences for economic growth in the long term.
Soldiers’ pay will rise substantially. From the 25th month (the third year of service) it will rise by 25% starting in June 2024, and by 50% from January 2025. Starting from June 2026, differential pay supplements will be made depending on the area of service. Nevertheless, it appears that pay for those doing compulsory service will remain below the minimum wage, which is currently NIS 5,571 monthly.
The joint statement further states: "In order to enable the IDF to keep high-quality manpower, it has been decided that NIS 1 billion will be allocated to a special pay agreement, as pay supplements and grants for young career personnel and for combat soldiers." This will raise the pay for junior career officers, from the rank of second lieutenant to captain, who currently earn NIS 11,000 a month on average. In addition, the IDF and the Ministry of Finance are working on an agreement whereby the automatic pay rise that career personnel receive following pay rises in the public sector will no longer be automatic, but the IDF will have discretion to choose to award larger pay rises for professions for which it has greater need, at the expense of rises for professions in which there is no shortage of career personnel.
In addition, the IDF will be able to offer people in certain areas higher pay instead of a bridging pension when they leave. In February it was agreed that bridging pensions will be payable up to age 60 only, and not 67, the general retirement age for men, as hitherto.
Minister of Defense Yoav Gallant said, "The multi-year plan will provide the basis for strengthening the IDF and for procurement, and for preserving Israel’s qualitative advantage over its enemies in security, the military, technology and intelligence. We shall invest particularly in manpower, in order to preserve the source of our strength, and we will adopt policies that allow higher pay to those who serve at the combat front and for longer, in compulsory service and in the career army."
Published by Globes, Israel business news - en.globes.co.il - on June 22, 2023.
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