• Sun. Dec 3rd, 2023

Knesset Advances Legislation for Reimbursing Employers for Reservists’ Pension Payments


Nov 21, 2023

The All-Israeli Association of Trade Unions, Histadrut, has made a call to Deputy Israel Eichler, the Chairman of the Parliamentary Commission on Labor and Social Security, to push for a bill that will reimburse employers for the pension contributions of workers called up for reservist duties. This initiative was spearheaded by Yossi Barabi, head of the trade union representing employees in security companies, cleaning companies and elderly care companies.

The bill is supported by both the Minister of Labor and Defense. Currently, under the National Insurance Law, reservists are compensated based on their “gross” salary but do not receive social conditions paid by their employers such as contributions to their pension fund, severance pay, vacation pay and health benefits among others. These non-reimbursable losses can amount to 22%-36% of an employee’s salary.

MP Eti Atia emphasized that this issue is especially relevant in fields such as safety and security where at least 100 thousand people are employed and around 20% of them are called up for reservist service. This puts a significant financial burden on already struggling industries like security companies who have to pay 25% of the salaries of 20% of their workforce.

Unfortunately, it appears that the second section of this content focuses on lists of marijuana businesses in various counties and states which is unrelated to the topic at hand – the appeal made by Histadrut for reimbursement of pension contributions for workers called up for reservist duties.

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