A new compensation framework

June 26, 2025

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Salaried employee? Self-employed? Business owners? Were you affected by the war against Iran?

A new compensation framework for affected employees and businesses is available to you!

In light of the fighting and the security situation, the state is launching a special compensation framework for salaried employees, small businesses, self-employed individuals, and shop owners – nationwide!

What’s in the framework?

Significant benefits for employees on unpaid leave

Compensation for businesses – including those not included in the previous framework.

What do employees on unpaid leave receive?

Payment for the unpaid leave period from the National Insurance Institute (Bituach Leumi) – 70% of your fixed salary.

Good news: No need to wait several days until payment begins – it will start immediately, without delay.

How do you receive the money?

The employer will report the days you didn’t work during the relevant period to the National Insurance, and payment will be transferred directly by the National Insurance Institute. You are not required to contact National Insurance yourself.

Were you on unpaid leave? Important to know:

An employer cannot put you on unpaid leave without your consent!
Instead of 30 days of unpaid leave – now only 14 days are sufficient (between June 14-30) to receive payment!
The requirement for 30 consecutive days has been temporarily cancelled – and accumulated vacation days will not be deducted.
Relaxed eligibility conditions: It’s enough to have accumulated 6 months of work out of the last 18 months to receive unemployment benefits.
The unpaid leave period counts toward seniority accumulation at the workplace.

And what do self-employed and business owners receive?

Affected businesses can receive a business continuity grant according to the extent of damage. Every type of business – small, medium, or large – is eligible for reimbursement tailored according to a predetermined formula and eligibility conditions.
Eligibility is determined by decreased income and submission of expenses (such as employee salaries and fixed expenses).
There is different treatment for small and large businesses – each receives according to a formula appropriate for them.
Compensation is intended for businesses nationwide, not just from directly affected areas.
Compensation includes both fixed expenses and indirect profit loss.

Don’t give up on what you’re entitled to – this is real help!

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A new compensation framework