High Court rules social security subsidies for Haredi yeshiva students must end

The High Court of Justice rules that subsidies enjoyed by ultra-Orthodox yeshiva students for payments to the National Insurance Institute, Israel’s social security agency, must be ended.

The subsidies amount to some NIS 100 million a year, according to the Movement for Quality Government in Israel, one of the primary petitioners in the case.

The court told the state to inform it within 30 days how much time it needs for a period of adjustment before the cessation of the subsidy.

The ruling was based on the High Court’s decision from June 2024, in which it ruled that there was no longer any legal framework for ultra-Orthodox yeshiva students to be exempted from military service, and that by extension, there was no legal framework to continue financial benefits granted by the state to such students.

In its petition, the Movement for Quality Government in Israel noted that yeshiva students need to pay around NIS 1,000 ($300) per year in National Insurance payments, but that the subsidy covers some 67% of those payments.

The organization argued in court that the government had no legal authority to continue granting the subsidy to ultra-Orthodox yeshiva students who are obligated to enlist for military service, in light of the June 2024 ruling.

Representatives of the state informed the court that they agreed with the petitions just before a hearing scheduled for this morning began, leading to the ruling.

“This is a significant victory for the principle of equality and the protection of public funds,” says Attorney Uri Hess, head of the Movement for Quality Government’s finance department.

“The High Court of Justice confirmed our position that draft evasion should not be financially rewarded. The decision will return more than 100 million shekels a year to the state treasury and strengthen the principle of equality in the burden [of military service]. This is a good day for Israeli democracy and for every citizen who believes in social justice.”

The Israel Hofsheet organization which was another of the petitioners against the subsidy also welcomes the ruling and the state’s acceptance of its position.

“We will stop all privileges for draft evaders, even if the government continues to drag its feet,” says Israel Hofsheet Executive Director Uri Keidar.

“Petition after petition, all incentives for those who choose to shirk their military service during wartime will be stopped. The time for equality has come.”