PM Benjamin Netanyahu and Finance Minister Israel Katz presented the “Economic Safety Net 2020-2021” program this month – an economic package that will provide certainty and financial security for a period of a year to employees, the self-employed people and businesses during the Corona period.
The program is up to June 2021 – and includes providing unemployment benefits to employees, social assistance grants for the self-employed up to NIS 15,000 every two months, a business assistance grant, also for new businesses and more.
For the self-employed grants will be paid as early as the 12th July. They are promising a grant of NIS 7,500 and should receive an SMS from the RashutMisim confirming that you will be receiving a grant informing you that on a certain date you will be receiving a grant.
In this example it is the 15th July, that is when they will be transferring funds for everybody, unfortunately, they do not write the amount.
This program is an extension of the financial aid program for the victims of the Corona crisis presented by the Prime Minister and the Minister of Finance at the beginning of the coronavirus crises in March.
Here are the main points of the program:
More support for the unemployed and salaried employees on unpaid vacation
– Unemployment benefits
– For people on unpaid vacation, full unemployment benefit until the end of June 2021 or until the unemployment figures fall below 10%
– Eliminating 5 days of waiting between periods of unemployment
– Shortening the training period to 6 months instead of 12 months
– People will be entitled to received double allowances from Bituach Leumi until the end of June 2021. This means that if you are receiving an allowance from Bituach Leumi for example, a pension and you are now on unpaid vacation leave, you are also entitled to receive unemployment benefits as well.
– Adding unemployment eligibility also from January and February (starting July 2020)
– Adjusting the terms of unpaid vacation (Halat)
-Minimum 14-day unemployment benefit entitlement decreased.
-Payment of the grants of up to NIS 4,000 per month to those aged 67 and over, until December 2020.
– Goals – Setting half-year goals to decrease the unemployment rate
– Employee training and placement – Extensive increase in the scope of professional training and integration of employers in the training process.
A safety net for self-employed people and businesses
- Immediate assistance grant to self-employed and business owners for May-June 2020
A self-employed person or a controlling shareholder who received a previous grant will be eligible for an immediate grant of up to NIS 7,500. The immediate grant is expected to be given to over 380,000 self-employed and business owners by the tax authority directly into the bank account without the need for any action by the independent or business owner. This grant will be transferred to your bank account on the 15th July.
- Social assistance grant for self-employed and business owners
Self-employed and business owners with a taxable annual income of up to NIS 640,000 per year who has experienced a reduction in turnover of at least 40% will receive a monthly allowance of 70% of taxable income up to NIS 15,000.
This information is still subject to change 12.7.2020