The shortened service will decrease the amount of soldiers in the IDF by thousands every year in an attempt to further reduce the gap in service between men and women.
Male soldiers that choose to extend their service and serve extra time of up to 6 months can save the army up to NIS 50,000. Male soldiers who do not opt to extend their period of service can then enter the labor market earlier, thus lowering the age of entry into the market and increasing the GDP.
In January, Minister of Finance Moshe Kahlon announced a plan to increase efficiency in security forces. One of the most significant proposed moves is a new pension plan that seeks to save an estimated NIS 1.5 billion a year between 2020 and 2026.