The daily rate of the benefit is the gross salary (for a salaried employee) or income (for a self-employed worker) – subject to National Insurance contributions – or a combination of both (for someone who is both a salaried employee and a self-employed worker) in the 3 months that preceded the first of the month in which the reserve service began, divided by 90.
Under the amendment to the Reserve Service Law, as of August 1, 2008 the formula for calculating the benefit has changed.
Sick leave pay, maternity allowance, pay in lieu of vacation, reserve service benefits, unemployment benefits, and work injury allowances are taken into account in calculating the benefit.
The maximum monthly benefit for a salaried employee, self-employed worker or for someone who is both a salaried employee and a self-employed worker is 5 times the basic amount NIS 41,850 (as of 01.01.2012) , and the maximum daily benefit is 5 time the basic amount divided by 30, NIS 1,395.00 (as of 01.01.2012) .
The minimum benefit is 68% of the basic amount, NIS 5,692 (as of 01.01.2012) per month and NIS 189.72 (as of 01.01.2012) per day.
If cost-of-living increments were paid to salaried employees in the economy in the 3 preceding months or the preceding quarter according to which the benefit is calculated, or in the course of the service, the salary of a salaried employee or the income of a self-employed worker in the months that preceded the month in which the cost-of-living increment was paid, will be adjusted at the rate of the cost-of-living increment.
The rate of the benefit due to a person who is not working is equal to the minimum daily benefit, NIS 189.72 (as of 01.01.2012) .
A person who stopped working before reporting for reserve service and no more than 60 days have elapsed from the date of termination of the work is considered to have reported for reserve service on the date he stopped working.
If a salaried employee worked less than 60 days in the 3 months that preceded his departure for reserve service, the rate of the benefit due to him is calculated according to his average wage or income in the 3 months in which these wage or income was the highest out of the 6 months that preceded the first of the month in which he began his service.
If a person began his reserve service within 60 days of the date on which he completed his previous reserve service, he is entitled, if the result would be favorable to him, to calculate the benefit on the basis of his salary or income in the 3 months that preceded the first period of reserve service.
The rate of the daily grant for a working youth who participates in pre-military education is equal to his salary in the last 30 days of the 3 months that preceded the start of his service, divided by 30.
The minimum grant per day for a working youth is 25% of the average wage (on January 1 in the fiscal year in which the service began), divided by 30, NIS 71.83 (as of 01.01.2012) .