As most Israelis tighten belts, cabinet treats top bureaucrats to massive bonuses

The cabinet has approved retirement bonuses of up to a quarter million shekels ($68,000) for ministry director generals and their deputies.

The bonuses will also be extended to up to 300 additional senior civil servants, costing the state treasury millions in extra expenditures annually, according to Hebrew media reports.

The move comes at a time when the government is tightening its belt elsewhere in order to pay for the wars in Gaza and Lebanon.

The 2025 state budget, which is currently making its way through the Knesset, includes a nearly NIS 40 billion package of tax hikes and spending cuts to try to rein in a budget deficit now running at 8.5% of GDP. Under the new budget, Israelis are slated to pay more taxes while receiving fewer public and government services. This includes increases in National Insurance contributions, costing the average household up to NIS 2,000 a year.

In a statement released ahead of the government’s approval of the measure, the Histadrut labor federation called it a “scandal” and said that during such a difficult period “everybody must pitch in, including the most senior people.”

“To impose heavy taxes and harsh decrees on the public and, on the other hand, to give grants of hundreds of thousands of shekels for political appointments in government ministries is not only unbelievable audacity, it is also bribing close businessmen and strengthening the base,” complains opposition MK Vladimir Beliak. “Never before has Israel had such a failed and shameless government.”