The Minister of Finance, the Chairman of the Finance Committee, members of the committee from the coalition and the opposition, and the employers' and self-employed organizations are presenting agreements on a huge compensation outline for the benefit of businesses, the self-employed, and the economy.
After presenting the initial draft of the compensation outline and in accordance with the commitment made by Finance Minister Smotrich in the Finance Committee, the Finance Minister's team worked together with representatives of the coalition and the opposition to significantly increase the compensation outline and reach agreements with the key players in the business sector.
According to the outline, in addition to the compensation currently stipulated by law with respect to the settlements of Sefer and Ashkelon, a grant outline will be provided to businesses under the following conditions:
• The threshold for entry into the grant program is a loss of 25% in relation to one base period to be defined, and an annual turnover of up to NIS 400 million.
• The fixed expense component of the inputs will be a maximum of 22% (depending on the extent of the damage). The higher the actual input rate, the higher the amount may be obtained (limited to 1.5 times).
• The compensation ceiling will be 600,000 NIS for turnovers of up to 100 million and will gradually increase to a cap of 1.2 million for businesses up to 300 million NIS.
• The employee wage participation rate will increase to 75% times the turnover injury rate times wage expenses.
• It is agreed that the draft plan will be based on the existing model, subject to the following concessions.
• Removal of conditions for offsetting accrued vacation days from unemployment benefits
• Cancellation of waiting days (without offsetting five days of unemployment)
• Reducing the minimum waiting period from 30 to 14 days
• The minimum training period will be reduced to 6 months out of 18 months
• The relief will take place in the period between October 7 and November 30, with the date of departure for sick leave determined by the Employment Service starting from the employee's actual departure for sick leave.
• This outline applies until November 30, 2023, and the Minister of Finance, with the consent of the Finance Committee, may extend it until the end of 2023.
• Localities within a range of 7-20 km (and horizons) not in the agricultural sector will receive a salary track or rotations similar to previous rounds. (With a cap of 2.5 million NIS, subject to legal approval.)
• The outline for farmers will work in Sefer settlements according to the law and in settlements up to 20 km (including Ofakim) that are not Sefer settlements – a red route alongside a normative green route subject to legal approval.
Rest of the country: Same as the general grant.
• In addition to the compensation outline, a grant was decided for the spouses of reserve service members, as well as increasing the payment for a reserve day to 125% and advancing the payment to the end of October in order to facilitate the continuous financial management of citizens.
The legal memorandum will be distributed later with the aim of advancing the law as quickly as possible and supporting the self-employed and employers from the first month of fighting.
Finance Minister Bezalel Smotrich: "The joint, substantive work of the coalition and the opposition has brought an excellent result for the citizens of Israel. Last week, I pledged that we will stand by the citizens, and my goal is to fortify the State of Israel's second line of defense, the home front, with an open treasury purse to support the economy, the self-employed, businesses, and all citizens."
The initial outline was presented quickly, but gaps that required correction were immediately apparent. My team, in collaboration with coalition and opposition representatives and representatives of the organizations, got to work and arrived at a more expansive and better outline for businesses in Israel.
"This is a huge outline that will give businesses and citizens a breath of fresh air. I thank the members of the Knesset, coalition and opposition members, and especially Chairman Gafni and the opposition center and Lidmir Belyak, who understood the magnitude of the hour, who acted thoroughly and professionally without noise and bells for the citizens of Israel."
Finance Committee Chairman MK Moshe Gafni: "Our job is to do everything to assist the residents, especially in the settlements of the book. We have made every effort to ensure that many settlements receive the maximum possible assistance and to assist workers and employers. We pray to God that the war will end quickly and well."
"I congratulate the Minister of Finance and thank the members of the Finance Committee from the coalition and the opposition who showed responsibility to finalize the outline and help citizens."
Coalition center in the Finance Committee MK Eliyahu Revivo: "From the very first moment, I said above all platforms that I would not allow progress with two outlines from two government ministries and that it is our duty to expand the full compensation beyond 7 km. After working hard together with the chairman of the Finance Committee, with the Ministry of Finance and representatives of the business sector, I am very happy that the state is presenting a unified, balanced and correct outline. I am proud that my demand to increase the range of full compensation to 20 km, including the city of Ofakim, was accepted. The Israeli economy will receive the certainty it deserves and the victims will be compensated."
The opposition center on the Finance Committee, MK Vladimir Belyak: "I welcome the new outline, which provides a better and more appropriate response, both to business owners and employees. Through a thorough and professional process, we have managed to significantly increase assistance to citizens who hold the economy on their shoulders. I would like to thank Finance Minister Bezalel Smotrich, Finance Committee Chairman MK Gafni, MK Yinon Azoulay and all the heads of the organizations for their cooperation.
"As additional assistance is required in the coming months, we will take the necessary steps for the sake of Israel's economy. Together we will win."
Chairman of the Business Sector Presidency, Dubi Amitai: "Since the Finance Outline was published, we have gathered for days of intensive work and have significantly improved the compensation and grant outline for the business sector. As the fighting continues, additional adjustments will need to be made in order to move the wheels of the economy and help the business sector continue its activities. I would like to thank the Minister of Finance, Bezalel Smotrich, and the Chairman of the Finance Committee, MK Moshe Gafni, for their joint work on behalf of the business sector. In addition, I would like to note the quick and effective response given to farmers in the areas of the school."
Histadrut Chairman Arnon Bar David: "With joint forces and a discourse that rose to the occasion, we reset the issue of the strike and formulated an outline that provides an important initial response. The safety net that the outline provides in the form of wage compensation for employers and a protective envelope for employees creates the certainty required for the state to ensure the resilience of the economy even in times of war."
President of the Tax Consultants' Chamber, Yaron Gindi: "The updated outline that we formulated with the Minister of Finance does indeed allow businesses to get through the difficult period as living businesses and growth engines that will bring the economy back to activity at the end of the war. The Minister of Finance was very attentive to our demands and I was very happy to see that he did not settle for the initial model proposed by the Ministry of Finance. We sat together for hours, professionally analyzed the data and arrived at a proper and responsible model."
President of the Chamber of Commerce, Attorney Roy Cohen: "I congratulate the Minister of Finance on the necessary change in the compensation outline after talks with us last week and his willingness to strive for a decent and appropriate solution, which indicates how important the dialogue, connection and cooperation with the Minister of Finance and the professional staff in the ministry are. I have argued throughout that disputes are resolved in a fair and respectful dialogue with the heads of economic organizations, and to my delight, this was the case, and the outline was adapted as much as possible to the needs and responses of the self-employed and business owners, and together we will overcome additional challenges in the future."
Ministry of Finance Director General Shlomi Heizler: "I welcome the broad agreement we were able to reach. The outline provides a response to a wide variety of businesses, allows the economy to continue operating, and includes a flexible response to the working public through amendments to the GALAT mechanism. The comprehensive agreement we reached together reflects broad agreement and expresses the united Israeli spirit. Together we will win, including the economy."
English 
Hebrew