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25th Knesset · outgoing

Reserve Service Law (Amendment – Reducing the Tax Rate on Compensation for Reservists) Bill

Translated from Hebrew: הצעת חוק שירות המילואים (תיקון - הפחתת שיעור המס שחל על תגמולים למשרתי מילואים)

TL;DRReducing the tax rate on compensation for reservists from 25% to the lower of 25% or the reservist's own tax rate.

Translated from Hebrew

What does the bill do?

The bill changes the law on compensation for reservists. Currently, the compensation is subject to income tax at a rate of 25%. The bill states that the tax rate will be the lower of: 25% or the tax rate that applies to the reservist's current income. The explanatory notes state that many reservists are young people with low incomes, and in the sponsors' view the 25% tax rate creates a significant distortion and injustice toward them.

Rejected at preliminary readingFirst plenum vote: May 28, 2025
Initiated by: a party that left the coalitionRead the full text (bill for preliminary reading) ↗

The votes on this bill

Rejected31 for · 51 against · 0 abstained · 38 did not vote
Source: the Knesset's vote record ↗

Coalition 68 seats

LikudFor 1 · Against 26 · Absent 5
ShasAgainst 8 · Absent 3
United Torah JudaismAgainst 6 · Absent 1
Religious ZionismAgainst 6 · Absent 1
Otzma YehuditAgainst 3 · Absent 3
New Hope – The United RightAgainst 2 · Absent 2
NoamAbsent 1

Left the coalition 8 seats

Opposition 44 seats

Yesh AtidFor 21 · Absent 3
Yisrael BeytenuFor 2 · Absent 4
Ra'amAbsent 5
LaborAbsent 4

Tap an MK for detailsChanged position between readingsOnly MKs who held a seat on the day of the vote are shown

Other bills with a similar name · 1Separate bills (usually different amendments to the same law) - not readings of this bill.