Despite constituting 14 percent of the working-age population, the ultra-Orthodox community generated only four percent of Israeli tax revenues in 2023, costing the government billions and adding thousands of shekels to the average non-Haredi worker’s annual tax burden, a study by the Israel Democracy Institute has found.
Should current demographic and employment trends continue, by 2048 about a quarter of Israel’s population will be Haredi but will, in aggregate, contribute a mere 8% of direct tax revenues, the IDI projected.
According to the study — which was based on data from the Central Bureau of Statistics, Tax Authority, Population Authority, and National Insurance Institute — the lack of secular studies in Haredi schools has led to “underperformance in the labor market and significantly lower household incomes relative to the general Jewish population, especially among men.”
As a result, it asserted, “despite consuming more state services, Haredi households pay less in income taxes.”
Fifty-four percent of Haredi men were employed in the first three quarters of 2024 compared to 55.5% in 2023. For women, employment rates have risen steadily from 71% in 2015 to 81% in 2023, only 2% less than non-Haredi women.
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