The Chief Economist at the Finance Ministry announced this morning (Tuesday) that the average economic cost of a reservist stands at approximately NIS 53,000 per month. This represents an increase of about 10% compared with the previous estimate from 2024, which stood at NIS 48,000 per month.
The update is based on an examination of the employment characteristics of those actually serving in the reserves, rather than relying solely on the overall average wage. At the same time, the estimated cost of a female reservist was revised downward to NIS 27,000 per month.
The Finance Ministry’s calculation of the “economic cost” consists of the loss of the worker’s economic productivity, the loss of seniority and experience, the impact on the spouse’s economic activity, and the losses resulting from the postponement of academic studies.
The findings show that non-Haredi Jewish men account for only 36% of all employees, but make up 83% of those absent from work due to reserve duty. In addition, approximately 75% of reservists who did not report to work are between the ages of 25 and 44, while students account for 13% of them, compared with 7% of the general population.
Only 8% of those absent because of reserve duty are self-employed, compared with 14% in the overall economy, which may indicate either difficulty in leaving their businesses or an ability to continue operating them while serving.
In addition, 70% of those absent have children at home and 63% have young children, rates significantly higher than among the overall employed population. The average salary of a reservist between the ages of 25 and 44 who is absent from work stands at NIS 18,841, 42% higher than the average salary of those who were not absent.
Based on the data, the economic cost of a young reservist was revised to approximately NIS 39,000 per month, while the cost of an older reservist stands at approximately NIS 68,000 per month. Among women, the cost was revised to approximately NIS 27,000 per month for younger reservists and approximately NIS 37,000 per month for older reservists.
The Finance Ministry emphasizes two main implications of the findings, foremost among them the need to reduce the number of reserve-duty days to lower levels once active conflicts have ended.
The second implication concerns military recruitment. According to the report’s calculations, replacing 10,000 reservists with regular-service soldiers would reduce the economic cost from NIS 53,000 to NIS 26,000 per month. Such a move would generate an economic benefit of NIS 270 million per month and NIS 2.7 billion annually for the economy as a whole.
The Finance Ministry also notes that the cost of a Haredi soldier could be lower due to lower average income and lower employment rates.