Minister of Finance Bezalel Smotrich and Minister of Defense Yoav Gallant have presented a financial assistance plan for those serving in the army reserves with an annual cost of NIS 9 billion. The plan has been presented even before clear sources have been found for the revised 2024 state budget, work on which is currently being held up over disagreements between Smotrich and his senior officials in the Ministry of Finance on the required spending cuts.
The plan includes continued monthly grants of NIS 1,400 for combat soldiers and NIS 800 for non-combatants and a daily payment of NIS 133 for those serving over 60 days, as well as a one-time 'household payment' for assistance in paying municipal taxes and other expenses totaling NIS 2,500 for combat soldiers serving over 45 days.
The self-employed serving in the reserves or with a partner serving in the reserves will receive enlarged compensation. Smotrich says, "They will receive grants equivalent to the red track like the Gaza border residents who have been evacuated from their homes and will receive full compensation for their lost profits. This is not only for their period in the reserves but also for six months after their reserve duty in order to allow their business to recover." In addition, NIS 1 billion will be allocated to a state-guaranteed loan fund for the self-employed.
The plan also includes aid for the family. Smotrich and Gallant have promised a monthly grant of NIS 2,500 for combat soldiers and NIS 1,500 for non-combatants for parents of children up to the age of 14, a voucher worth between NIS 1,500 and NIS 4,500 for a family vacation and a NIS 4,500 grant as an alternative to unemployment pay for a partner of a reservist unable to work in order to look after children. The package also includes extending maternity leave through a compensation fund for those serving in the reserves and their families.
At a press conference presenting the plan, Gallant said, "The army reserves are a unique asset for the State of Israel. The reservists provide a decisive and clear answer to anyone who said it was possible to manage without them. The state has a responsibility to take care of their needs and today, in cooperation with the Minister of Finance, we are presenting an aid plan that will soon be approved by the cabinet. The reservists deserve respect and adequate compensation."
Published by Globes, Israel business news - en.globes.co.il - on December 27, 2023.
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