Israel prepares to welcome hostages back home with comprehensive rehabilitation, compensation benefits

Should all go according to plan and there are no last-minute Hamas terror attacks, Israelis are expected to welcome home the remaining 48 hostages – 20 of whom are believed to be alive – just before the Simchat Torah holiday on Monday. The anticipated release comes exactly two years after the devastating assault on Israel’s southern border.

Every returning hostage will reportedly receive roughly $16,000 upfront from the State of Israel, a lifelong monthly stipend of approximately $2,400, housing and car grants up to $40,000, full medical and educational coverage, as well as extensive financial and welfare benefits for hostage family members.

Each former hostage will also be entitled to a grant of NIS 250,000 ($67,000) toward a home purchase, which is expected to increase to NIS 300,000 ($81,000) should the government approve a bill that would raise the recognized disability rates for former hostages from 50% to 100%.

Additionally, each survivor will receive full medical care coverage, psychological rehabilitation, alternative therapies, and vocational retraining, property tax reductions, and discounts on electricity and water bills.

Israel's Tekuma Rehabilitation Administration will also provide housing for hostages who are residents of the Gaza Envelope region.

Civilians returning will receive their entitlements through the National Insurance Institute, while released soldiers, security personnel, and local defense volunteers will receive identical benefits through the Defense Ministry.

“These rights are enshrined in law as part of Israel’s long-term commitment to all hostages and returnees,” the Hostages and Missing Persons Directorate in the Prime Minister’s Office said. “They include a resettlement grant, a replacement income for the first year, a lifelong compensation stipend, and a 50% lifelong disability pension –without requiring a medical committee.

The directorate emphasized the assistance will be “personal, continuous, and sensitive,” adding, “This is ongoing support based on deep recognition of the price paid and the need to care for those who suffered. The journey does not end with their return – families still need guidance, rehabilitation, and support, whether their loved ones come home alive or for a dignified burial.”

New legislation advanced by the Defense Ministry, the National Insurance Institute, and the Hostages Directorate seeks to amend the Hostage and Released Captives Law, permanently increasing the recognized disability rate from 50% to 100%.

The bill has already been approved by the Cabinet and is now moving toward second and third approvals in the Knesset’s Labor and Welfare Committee. The law would significantly increase disability pensions and the total extent of financial and rehabilitation support.

Recent legislation also extended the rehabilitation plan for the families of freed hostages, recognizing them as secondary victims of the trauma endured during captivity. Under the plan, family members will receive NIS 2,000 ($540) for travel expenses, and NIS 4,500 ($1,200) per month for household assistance for a period of three months. Family members will also be entitled to income compensation for two months for lost wages while caring for a recovering hostage. In circumstances of extended hospitalization, families will be eligible for additional reimbursements as specified in government regulations.

The legislation also guarantees support for a three- to four-year rehabilitation plan for families, including mental health care, emotional support, and professional or educational assessments. A variety of additional benefits will reportedly include prescription drugs, medical consultations, dental care, travel reimbursements for treatments, recovery grants, complementary medicine, private surgeries, fertility treatments, and funding for advanced education or professional training.

Families may also apply for business recovery loans, grants, and for exceptions through a special committee.

A Family Support Service Center under the National Insurance Institute has been established to help families secure their entitlements and receive continuous assistance. The Defense Ministry offers comparable support to the families of soldiers and security personnel who were taken hostage.

Mental health benefits will be provided at the highest level allowed by law, and supplementary therapeutic and emotional support will be available for extended family members through partnerships with the Welfare Ministry, National Insurance foundations, and the Center for Terror Victims. These services will also be provided by other organizations, including the “Family Circle” program and specialized treatment initiatives at Sheba Medical Center in Tel Hashomer.