The total cost of four election campaigns in Israel within two years amounts to about NIS 12-14 billion

Posted on Mar 23, 2021 by Ifi Reporter - Dan Bielski

The total cost of four election campaigns in Israel within two years amounts to about NIS 12-14 billion. The cost of the current election is higher than the state budget, due to the special preparations of the Election Commission required in response to the Corona crisis.
 In the elections to the 24th Knesset, the direct damage to the economy amounts to NIS 2.2 to 3 billion, and the direct budgetary cost of financing the parties and operating the election committee amounts to about NIS 800 million. It should be noted that the amount of damage to the economy increases due to the Sabbath day also as the state product increases each year.
According to section 10 of the Basic Law: The Knesset and sections 71A and 136 of the Knesset Election Law, Knesset Election Day is a Sabbath day, on which there is no obligation to work, and no day off is deducted. Those who worked for an employer at least 14 consecutive days before Election Day are entitled to wages for the Sabbath day and those who work on Election Day are entitled to a wage of 200%, or to regular wages and a day off at another time. In addition, employers must pay its employees
In the State of Israel, due to the political situation, within about a year these laws came into force and required the Israeli economy, the entire business sector, and the small and medium business sector in particular to observe five sabbaticals, including the Sabbath for local government elections, held on October 30, 2018. The general elections in April 2019 and September 2019, the Sabbath due to the March 2020 elections and the expected sabbatical today, in the 24th Knesset elections on this day full pay even if it is workers who have no right to vote at all, like foreign workers in nursing and agriculture and Palestinian workers.
According to an estimate by the Macro Institute of Economics, headed by Dr. Ruby Nathanson, the cost of wage payments on the Sabbath for employees in the entire business sector is about NIS 1.5 billion. The estimate is based on data on wage costs for employees, distinguishing between the public and business sectors. In addition, the calculation assumes that all employees are entitled to a full-paid day off, and that employees employed on the Sabbath will receive a 100% additional payment. The total for employers in the economy is calculated on the basis of the total number of employees in the economy, whether they took a day off or worked.
The share of small and medium-sized businesses in carrying this burden of payments is 44.1% -50.16%. In financial terms, the economic damage caused and more will be caused to the small and medium business sector is estimated at NIS 2.64-3 billion. This amount is derived from the extent of the small and medium-sized business sector's contribution to GDP and from its relative share in all employed persons in the economy.
The budget of the Election Commission has increased by about 10% -20% in each election campaign. An increase in the budget is expected as Israel's population has grown consistently, the wages of workers in the economy have increased and therefore the wages of workers at the various polling stations and the rate of inflation has also increased despite a decade with almost zero inflation.


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