After ten days of uncertainty for businesses and employees, the state’s compensation plan is now being presented for those whose jobs have been affected since the start of the operation against Iran.
The aid outline will include a model for workers to go on short-term unpaid leave as well as grants for businesses throughout the country whose revenue has shrunk. The plan is retroactive from the beginning of the operation against Iran until June 30.
The aid outline for the economy has been agreed between Minister of Finance Bezalel Smotrich and his senior officials, Business Sector president Dubi Amitai, and Histadrut chairman Arnon Bar-David, who are now deciding on its contents for a joint statement to the media.
Ministry of Finance budget commissioner Yogev Gradus estimates that the compensation outline will cost the state between NIS 3-5 billion shekels. This is in addition to the NIS 4.5 billion that the state will pay through property tax for direct damage caused by Iranian missiles, according to Tax Authority director Shai Aharonovich.
The plan that will be implemented for businesses is an expenses track, which was also implemented at the beginning of the war in the wake of October 7. The state will compensate businesses throughout the country whose annual income is between NIS 12,000 and NIS 400 million and report a decrease in revenue of over 25% for a monthly report or 12.5% for a bimonthly report in May or June 2025.
Plan details
Businesses whose annual financial turnover is NIS 12,000 to NIS 300,000 per year will be eligible for a fixed business continuity grant depending on the level of damage to the business.
Businesses whose financial turnover is between NIS 300,000 to NIS 400 million per year will be eligible for a business continuity grant consisting of a refund of inputs of 7%-22% depending on the rate of damage to business turnover, as well as a refund of 75% of salary expenses in relation to the level of damage.
Published by Globes, Israel business news – en.globes.co.il – on June 23, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
