Financial Benefits for Discharged IDF Soldiers

The week your discharge certificate (teudat shichrur) is issued, a financial package opens that most discharged soldiers never fully use. The lump-sum deposit is the headline item, but the tax credit points alone can be worth more than 16,000 ₪ over the first three years out of uniform — and that is before education subsidies, travel discounts and employment grants are counted.

The discharge package at a glance

The benefits group into five tracks, each administered by a different body:

1. The discharge deposit (pikadon), held by the Defence Ministry's Hatzlacha Fund. 2. Tax credit points — two extra points for the first 36 months post-discharge. 3. Education benefits, including university tuition subsidies via the Hatzlacha Fund. 4. Employment benefits — placement grants, mobility allowances and unemployment safety nets via the IDF and Bituach Leumi. 5. Civilian discounts — transport, museum entry, and reduced municipal services in many cities.

The general eligibility window is five years from the date of discharge, with longer windows for combat veterans and certain hardship categories.

The deposit (pikadon shichrur)

The deposit is a lump sum credited to a dedicated account held by the Defence Ministry on behalf of the discharged soldier. The amount depends on service track — combat, combat-support and regular roles attract different deposit rates, with combat veterans receiving the largest deposit. In 2026 the deposit ranges roughly from 9,000 ₪ (short service in non-combat tracks) up to 30,000 ₪+ for full combat service.

The deposit is locked for the first six years post-discharge for general use, but is accessible immediately for approved uses: tuition, vocational training, an apartment purchase or rental contribution, or establishing a business. After six years the deposit unlocks unconditionally and can be withdrawn for any purpose.

Tax credit points (nekudot zikui)

The Tax Authority grants two extra annual credit points to discharged soldiers for the first 36 months after discharge. At 2026 rates, two points are worth approximately 5,640 ₪ per year — roughly 470 ₪ per month in reduced tax. The credit is applied automatically once you check the discharged-soldier box on Form 101 (the new-employee declaration), which is the single most important action in your first job out of uniform.

For combat soldiers and combat-support roles, the credit period extends and the per-month value is higher. Both groups should explicitly check the relevant box on Form 101 and verify the credit on Form 106 at year-end.

Education benefits

The Hatzlacha Fund subsidises tuition for a first undergraduate degree (in many tracks), pre-academic preparatory programmes (mechina), and vocational courses. The deposit itself can be drawn against tuition without consuming the unconditional six-year cap. Combat veterans receive additional grants stacked on top.

Employment and Bituach Leumi safety nets

Bituach Leumi provides discharged soldiers with an accelerated unemployment qualifying period — discharged soldiers are eligible for unemployment benefit (dmei avtala) under shorter contribution histories than civilians. The IDF Manpower Directorate also runs placement grants for veterans who take employment in priority sectors.

Civilian discounts

The discharged-soldier card (teudat hayal meshukhrar) unlocks public-transport discounts (~33% on intercity bus and rail through the first year), reduced entry to national parks and museums, and discounts at many municipal services. The card is issued automatically with the discharge certificate.

The five-year window

Most benefits assume a five-year activation window: deposit drawdowns for approved uses, tax credit application, education subsidies and employment grants all default to this horizon. Combat veterans and hardship cases have extended windows. After five years the credit points and most employment grants close, but the deposit remains accessible until the unconditional unlock at year six.

Where to start

The Defence Ministry's discharged-soldier portal (machar.gov.il) is the single best starting point. It consolidates the deposit balance, education subsidy applications and the discharged-soldier card. From there, link your Tax Authority account to confirm the credit points are running on payroll, and your Bituach Leumi account to check unemployment eligibility.

— Yesh Cash Editor