The Israeli government will pay employers NIS 7,500 for each employee that they will bring back from unpaid leave on June 1 and NIS 3,500 for every employee that they brought back on May 1. This is the main point of the government plan to reduce unemployment being launched by Minister of Finance Yisrael Katz.
Katz today distributed a copy of his proposed Knesset bill for the grants as part of his plan to encourage employment. According to the announcement by the Ministry of Finance, the plan was formed by Katz together with Prime Minister Benjamin Netanyahu. The grants will now be restricted by the number of employees brought back from unpaid leave and applies to every employee whose monthly salary is over NIS 3,300. The grants will be made in four payments over four months to ensure that the employee is taken back just to receive the money.
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The Bill concerning the grants will be discussed by the cabinet on Sunday and then pushed through the Knesset as quickly as possible. Katz has already instructed the Israel Tax Authority to prepare to be able to disburse the grants.
The Ministry of Finance said, “The grant to encourage employment is designed to reduce the number of unemployed, which is currently more than a million people, and get them back to work, and this joins the overall assistance measures given so far to businesses coping with the coronavirus crisis including loans funds with state guarantees totaling NIS 20 billion, grants for repaying fixed expenses for businesses worth NIS 5.2 billion, two payments for the self-employed totaling NIS 3.8 billion, exemptions from local authority taxes totaling NIS 2.85 billion, the postponement of fees, tax payments and more.”
Published by Globes, Israel business news – en.globes.co.il – on May 26, 2020
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