An update in the reserve duty soldiers’ compensation pay formula has been released on April 16th 2008. The new compensation formula has improved the pay they will receive for their reserve duty service and the Social Security (Bituach Leumi) laws have been amended accordingly as well.
This amended law will go into effect on August 1, 2008.
the following are the main points of this amended law:
1. A raise in the amount paid in reserve duty compensation according to the number of days served.
2. Payment of reserve duty compensation to those who served, even if their income is not compromised by their service in reserve duty.
3. Raise in the minimum monthly reserve duty compensation payment to 5,000 shekels.
4. Payment of reserve duty compensation for half days of service.
The reason for the change
Currently (before this law change), soldiers serving in reserve duty are compensated according to Article 273(a) of the social security law, which states the following formula:
total gross pay in the 3 months preceeding the reserve duty divided by 90 muliplied by the actual number of days served.
The problem with this formula is that short periods of service of less than 7 days or service that ended on a weekend was not amply compensated for. For example: someone who served for 5 days is compensated for 5/30 of his pay whereas someone who worked 5 days is compensated for 7/30 of his pay.
The new changes under the new formula
1. Continuous reserve duty of 7 days – Payment will be for each day of service (even for several periods of 7 day service) according to the existing formula – 3 months pay divided by 90.
2. Service of 1,2,3,4,5 days – according to the existing formula – 3 months pay divided by 90 with an additional 40% added to the days served.
3. Service of 6 days – according to the existing formula – 3 months pay divided by 90 with an additional day added.
4. Service of longer than 7 days –
a) If after dividing the number of days by 7, the result is less than 6, the calculation will be according to the existing formula – 3 months pay divided by 90 with an additional 40% added to the days served.
b) If after dividing the number of days by 7, the result is 6, the calculation will be ccording to the existing formula – 3 months pay divided by 90 with an additional day added.
5. Updates in minimum required compensation
a) The daily minimum has been increased to 166.65 shekels.
b) The monthly minimum has been increased to 5,000 shekels (as oppossed to 3,710 shekels before the ammendment to the law)
This basically means that even a student who has no income or someone who is earning less than 5,000 shekels will recieve for their service 5,000 for a month of service.
6. Half day of reserve duty service
This will be compensated for at half the daily minimum rate, with the following conditions:
a) The service (including travel to and from) will not be more than 6 hours max.
b) Based on special authorization of service slip by the army.
7. Compensation payment to those who served and their income was not compromised
No differnciation between those whose income was compromised and those whose income wasn’t compromised.
Anyone who worked and served after work hours, will be recieve both regular pay from his employer and a compensation for his service.
For your info
salaried employees recieve their reserve duty compensation by way of their pay slip from their employer who is reimbersed by social security.
self-employed or unemployed need to file a request for reserve duty compensation at their local social security office.
Moshe Egel-Tal, CSPP
Founder and CEO, Israpay "making payroll simple"
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