The Finance Ministry will expand compensation for businesses to the entire country in the wake of the war with Iran, it announced on Monday. The ministry is working in coordination with the Knesset Finance Committee, Histadrut labor federation, and the Israeli Presidency of Business Organizations.
The plan had previously applied to specific areas impacted by the Israel-Hamas War. The plan announced Monday includes compensation for businesses whose activity cycles have dropped as well as “unique models” for unpaid leave for workers, as the ministry seeks to create a “broad as possible safety net” for employees.
“We are continuing the expansive civilian policy that I have led since the beginning of the war, and we are acting decisively to strengthen Israel’s economic home front as an integral part of the national security effort,” said Finance Minister Bezalel Smotrich.
“Activating the compensation track for businesses across the country sends a clear message to the citizens of Israel: You are not alone. This is an act of national responsibility and mutual solidarity, providing certainty in a time of war.”
Histadrut head Arnon Bar-David also welcomed the plan.
“To provide certainty for Israel’s economy and workforce, we reached this agreement. Through cooperation, we can quickly bring certainty to the citizens of Israel, and I welcome that. We did it during the COVID-19 pandemic, we did it at the start of the war, and we’re doing it now as well.”
Is it too little too late?
Finance Ministry compensation for businesses has been critiqued over the course of the past year, with some business owners saying that compensation has been given too late for them to be able to keep up with ongoing costs.
Others have also pointed to uncertainty created by the ministry when it did not announce what compensation would be available far in advance.