A statement from the Prime Minister's Office and the Ministry of Finance stated: "The plan will provide immediate assistance to businesses and employees who are expected to be affected by the current closure."
After the government last night approved the proposal to reduce executive pay, tonight (Tuesday) shortly after midnight, it also approved Prime Minister Netanyahu and Finance Minister Katz's plan to expand the economic safety net. The plan approved tonight was presented at a press conference last week by Rosh Government and Minister of Finance.
PM Netanyahu: "There may be no choice but to tighten the guidelines" // Photo: GPO
A joint statement from the Prime Minister's Office and the Ministry of Finance stated that "the expansion of the program will allow immediate financial assistance to businesses and employees who are expected to be harmed during the current closure."
They also stated in a statement issued on their behalf that the total cost of the measures, including expanding the response to businesses, employees and the self-employed in accordance with existing plans, is estimated at NIS 10.5 billion.
Prime Minister Netanyahu referred to the economic plan at the beginning of the cabinet meeting and said: "On Thursday we presented another economic aid plan for businesses in Israel, alongside the economic safety net that will operate until June 2021. We announced additional grants for employee retention, extension of state-guaranteed loans. Fixed expenses also for businesses affected by 25 percent or more - thus extending eligibility. The Minister of Finance will today bring these and other decisions to the government, including reducing the salaries of executives by ten percent. We must all bear the burden, and we kosher must also stand together And in the face of the reality that it will still be difficult. "
Finance Minister Israel Katz commented on the expansion of the program and said: "Today the government approved the reinforcement and expansion of the economic safety net that we interpreted, and which works well and helps the public.
Following the decision to declare the closure, we decided to strengthen and expand the economic safety net with additional economic measures.
We will continue to be attentive to the difficulties and come up with quick solutions that will provide a tailored solution for businesses, employees and the self-employed in the wake of the crisis. "
As stated, the government unanimously approved the expansion of the plan, presented by Prime Minister Benjamin Netanyahu and Finance Minister Israel Katz on New Year's Eve. The expansion includes a series of measures to reduce the damage to the economy during the closure period and deepen the economic response to businesses To 25%, providing advances at the expense of a fixed expense grant, a comprehensive employee retention plan and deferring a reduction in unemployment benefits.
Business Assistance
Extension of the fixed expenses grant - During the months of September-October, the aid grant will be awarded starting from a 25% increase in the business owner's turnover relative to the corresponding period before the outbreak of the virus.
In addition, the extension of the relief was approved, if necessary, also in the months of November-December, in accordance with the conditions set.
Advances - Immediate transfer of an advance at the expense of the September-October grant, in the amount of 50% of the fixed expenses grant to businesses that are expected to be affected by the closure.
The amount of the down payment will be based on the amount of the grant paid in previous installments (in March-April, or May-June at the choice of the business owner).
The amount of the down payment will later be deducted from the final eligibility amount to be determined for September and October.
Advance applications can only be submitted during October 2020.
Flexibility of eligibility for an employment incentive grant - In order to allow employers who hired employees but were forced to take them to the IDF in September because the business ceased operations, it was determined that they will not be deducted from the employee status examined for the grant. at least.
In addition, the salary threshold for which an employee will be considered eligible for a reduced grant of NIS 2,500.
Employee Retention Grant - In order to assist businesses whose business activity has been affected as a result of the economic impact of the Corona virus spread, it was decided to grant a one-time grant for the continued employment of employees in September and October.
A business will be entitled to a grant if its turnover does not exceed NIS 400 million and its turnover during the eligibility period decreased by 25% or more from the period last year.
Such a dealer will be entitled to a grant equal to a multiple of 5,000 shekels in the number of eligible employees, with the number of eligible employees depending on the degree of harm to the business, the more the business is harmed - the degree of his eligibility increases.
The grant will be paid through the Ministry of Economy.
Extension of property tax assistance - A full exemption from the payment of property taxes, financed by the state, will already be possible from a 25% reduction in turnover.
This is for the months of September-October.
In order to streamline the collection of debts from overpaid grants, it is proposed to prescribe a set-off provision for existing debt against credit balances in the various tax systems, similar to a parallel provision in the Grant for Employment Encouragement Law.
It was also decided to budget an additional grant program to encourage online commerce and digital activity for small and medium-sized businesses.
Social assistance
Postponement of the reduction in unemployment benefits - The postponement was approved on the date on which the reduction mechanism in unemployment benefits will apply, so that the decline resin will only be checked from 16.10.20 and the reduction will be postponed at this stage.
In order to finance the said measures, as well as the expectation of expanding the eligible populations due to the restrictions imposed at this stage, the increase in government expenditure in 2020 was approved by NIS 2.5 billion to deal with the corona crisis and in 2021 by an additional NIS 8 billion.
The increase will not be part of the calculation of the expenditure limit for the coming years.
