As the Israeli army continues calling up reservists for an expanded operation in Gaza, the cabinet has approved incentives worth NIS 3.4 billion for reservists drafted for combat duty.
The proposal approved by the cabinet, which was drawn up by the Ministry of Finance and Ministry of Defense will remunerate reserve officers with monthly grants of NIS 5,000-20,000 and provide tax breaks for all combat reservists serving more than 30 days in 2025 as well as a digital wallet worth NIS 5,000 for combat reserve soldiers.
Digital wallet: Combat reserve soldiers who served at least 10 days in 2025 will receive NIS 30 for each day of reserve duty until the 30th day, and NIS 80 from the 31st day onwards, up to a ceiling of NIS 5,000. The funds will be used to pay fees and charges to the state or for leisure and welfare purposes.
Grants for reserve commanders: Battalion commanders will receive a grant of NIS 20,000, deputy battalion commanders and company commanders will receive NIS 10,000, and deputy company commanders and platoon commanders will receive NIS 5,000. This is provided that they served at least 60 days in reserve duty in 2025 (or 40 days for students).
Tax Credit Points: Combat reservists will be eligible for tax credit points in 2026, according to a scale: those who served for more than 30 days will receive half a credit point, over 40 days – 0.75 credit points, over 50 days – a full credit point, and an additional 0.25 credit point for every five additional days of service, up to a ceiling of four credit points.
Grants to employers: A grant will be given to employers of reservists who serve in 2025, according to criteria to be set by the Ministers of Finance and Defense.
Housing benefits: Increasing the priority rate for reservists in discount-price apartment lotteries (between 25% and 50%), and increasing discounts on the purchase of land for build-your-own-home projects by 5%.
Preference in government services: Priorities and preferences in a variety of areas, such as gun licenses, research scholarships, admission to higher education institutions, registration for daycare centers, and civil service tenders.
Benefits for discharged soldiers and families of those serving: The proposal also includes specific benefits for discharged soldiers who were recruited into the reserves for compulsory service, including a one-time grant of NIS 1,000, for those who served at least 90 days in the reserves consecutively for regular service.
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In addition, NIS 100 million is being allocated for activities and events for the families of reserve soldiers in 2025, and NIS 10 million for the employment service for solutions for integrating reserve soldiers into quality jobs.
Published by Globes, Israel business news – en.globes.co.il – on May 11, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
