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Salary Deductions for Israeli Reservists Spark Controversy

2/5/2026, 12:06:55 AM

Overview of the Issue

In May 2025, a new salary mechanism was implemented for reservists employed in the civil service, leading to significant salary deductions that have raised concerns among affected individuals and lawmakers. The Knesset Labor, Welfare, and Health Committee convened to address complaints from reservists who reported deductions amounting to tens of thousands of shekels. The Finance Ministry acknowledged that these deductions were a result of the new mechanism but assured that the funds would be returned as an advance payment pending further review.

Impact on Reservists

Reservists have expressed frustration over the financial implications of the salary deductions. One reservist, who served over 260 days, reported incurring a debt of 30,000 shekels due to the deductions, which also led to a reduction in his unemployment benefits by an additional 30,000 shekels. He stated, “The decision to step up and serve the state cost me tens of thousands of shekels.” This sentiment reflects the broader concerns among reservists who feel that their commitment to national service has resulted in financial hardship.

Official Responses

Attorney Michal Ettinger from the Histadrut labor federation described the situation as a scandal, highlighting the numerous complaints received from reservists. She emphasized that the deductions were unlawful, particularly affecting a large group of employees within the Tax Authority. MK Sharon Nir, acting chair of the committee, criticized the government's actions as a violation of workers' rights, stating, “This must not happen to any group, and certainly not to reserve soldiers who left their homes, families, and jobs to repeatedly report for duty and serve the state.”

Criticism of the New Salary Mechanism

Ofir Tal from the Association for Reserve Soldiers noted that the new salary mechanism, intended to resolve existing issues, has instead led to confusion and chaos. He reported that many individuals received unexpected notices regarding substantial debts. MK Nir has called for the Finance Ministry to conduct a thorough review of the situation, urging an accurate assessment of the alleged debts and a self-examination of its handling of the matter.

Conflicting Reports & Gaps

While the Finance Ministry has committed to reviewing the deductions and returning the funds, the extent of the financial impact on reservists remains unclear. There are discrepancies in the reported amounts of debt and the number of affected individuals, indicating a need for comprehensive data to fully understand the situation.

Verbatim Quotes

  • “Dozens of complaints, and more, have reached us,” — Michal Ettinger, Attorney, Histadrut Labor Federation
  • “This must not happen to any group, and certainly not to reserve soldiers who left their homes, families, and jobs to repeatedly report for duty and serve the state,” — MK Sharon Nir, Acting Chair, Knesset Labor, Welfare, and Health Committee
  • “in practice it created chaos.” — Ofir Tal, Association for Reserve Soldiers

The ongoing discussions in the Knesset reflect a critical examination of the government's treatment of reservists and the need for accountability in the implementation of salary policies.