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Knesset promotes bill to compensate employers for reservists’ pension contributions

ByEditor

Nov 20, 2023

The All-Israeli Association of Trade Unions Histadrut has appealed to Deputy Israel Eichler, the Chairman of the Parliamentary Commission on Labor and Social Security, to begin promoting a bill to reimburse employers for the pension contributions of workers called up for reservist duties. The request was made by Yossi Barabi, head of the trade union of employees of security companies, cleaning companies, and elderly care companies. The bill will be tabled within two weeks unless the Ministry of Finance and the Ministry of Defense formulate agreed government legislation before then. Barabi’s initiative is supported by the Minister of Labor and the Minister of Defense.

Currently, the National Insurance Law compensates the wages of reservists based on the “gross” salary of the employee who went to reservist duty, with the amount of compensation not including social conditions paid by the employer, such as contributions to the pension fund, severance pay, vacation pay, health benefits, sick days and much more. The amount of these deductions can be 22%-36% of the employee’s salary, making them non-reimbursable losses for employers.

According to MP Eti Atia, this problem exists in many areas, especially in the field of safety and security, where 100 thousand people are employed, of whom at least 20% are called up for reservist service and risk their lives in the Gaza Strip. When security companies are forced to pay 25% of the salaries of 20% of workers, this is a significant cost for an already unprofitable industry.

By Editor

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