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How the Economic Plan Works | Israel today


| economyWhen will the self-employed receive the grant? • Are new business owners also eligible for payment? • What about pension recipients - are they entitled to unemployment benefits if they are fired from the work cycle? • Is it worthwhile taking an early withdrawal from a training fund? • And what changed during the period of eligibility for unemployment benefits? • Answers to all burning questions T...

When will the self-employed receive the grant? • Are new business owners also eligible for payment? • What about pension recipients - are they entitled to unemployment benefits if they are fired from the work cycle? • Is it worthwhile taking an early withdrawal from a training fund? • And what changed during the period of eligibility for unemployment benefits? • Answers to all burning questions

The new aid program presented by Prime Minister Benjamin Netanyahu and Finance Minister Israel Katz is primarily intended to give a horizon of certainty and prevent economic catastrophe from hundreds of thousands of Israelis, whose earning capacity was impaired due to the epidemic. So who is eligible? What are the determining criteria? And what is the scope of the various grants? We have gathered for you the main questions that arise from the program and the answers to them.

PM Netanyahu Introduces Economic Assistance Program // Photo: GPO

My period of eligibility for unemployment benefits ended before the Corona, but during the Corona I could not find a job. Am I entitled to any allowance?

Yes, under the new plan, those who ended their eligibility at the beginning of 2020 will also be eligible from the beginning of July until June 2021 for full unemployment benefits, as they were entitled to during the eligibility period before the Corona.

Is it true that my period of eligibility for unemployment benefits will last until the middle of next year and not for a maximum period of six months, as was the case before?

It may very well be. Under the new aid plan, the eligibility period was extended until June 2021, or until the unemployment rate fell below 10%. 

What is the logic of the relationship between the eligibility period and the unemployment rate in the economy?

A very high rate of unemployment in the economy, double-digit, indicates a severe shortage of workplaces - an objective measure not related to the degree of motivation of the unemployed to return to work. Obviously, many of the new unemployed will have to be flexible in choosing their next workplace.

Some will have to undergo professional training to find work in a field different from the one they worked in before. The idea is to produce this flexibility in the market so that unemployment benefits are paid in full during the difficult time of all, but when there is an indication of a return to growth, unemployed people will have no incentive to continue to enjoy unemployment benefits instead of returning to work.

More on:

Minister Katz revealed the economic assistance plan

Significant: An additional aid plan for more than NIS 50 billion

Netanyahu and Katz Decide: Another NIS 2 Billion Assistance Program for Businesses and Independents

What is the minimum period that you will receive from the unemployment benefit?

The training period "was reduced from 30 days to 14 days. In other words, even an employee who was only in the IDF for two weeks would be entitled to unemployment benefits for those two weeks. The idea is that there would be no incentive for an employer to leave an employee for 30 days, only to be eligible for unemployment benefits (previously an employee who returned after less than 30 days to work, lost the entitlement to some compensation for those working days). 

I am over 67, but I worked until recently and was fired. Am I entitled to unemployment benefits, even though I have a pension income?

Yes. Under the new plan, you will be entitled to unemployment benefits (an "adjustment grant") by the end of the year. 

Are there any other ways I can raise money during this difficult time?

Soldiers who have been released in the last five years can withdraw their money from the fund to liberated soldiers, for any purpose. On top of that, if you have an education fund, it will become liquid and you can withdraw money from it now, with no fines and no tax payment.

Should I withdraw the funds from the education fund that has not reached maturity?

This option is reserved for those who need money and do not have other sources of funding. Those who are concerned about the risks in the capital market can order the fund to move to a risk-less path, without the stock component. Those who do not need the money should consider whether they really want to give up this savings channel, which over time has turned out to be worthwhile. Another possible route is to take out a loan from the training fund. This is usually a loan that is given a very attractive interest rate, thereby allowing the saver not to lose the rights and benefits of the training fund.

I'm independant. Until recently, I earned at least NIS 30,000 a month, and then my income dropped significantly. What are the latest eligibility criteria for a compensation grant?

If your taxable income was up to NIS 640,000 a year and your sales turnover was at least 40%, you would qualify for the grant. The eligibility period set, by the same criteria, is until June 2021.

What is the maximum grant amount for self-employed and controlling shareholders?

The grant is 70% of the monthly taxable income up to a maximum of NIS 7,500. The grant will be paid once every two months - a

maximum of NIS 15,000  .

I own a tourism business that was severely damaged by Corona. This is a very big business. What is the scope of compensation I will receive under the new plan?

As an independent business (licensed trader), or company, the amount of compensation determined is an outflow of the business's monthly revenue cycle, provided it has dropped at least 40%. If this is a small annual turnover, from NIS 18,000 a year to NIS 300,000, the grant will be NIS 6,000-3,000. If it is a larger turnover (up to NIS 100 million), the amount of the grant may reach up to NIS half a month. The grants will be paid once every two months. 

I am a relatively new business owner, established at the beginning of the year, and I have no way of showing an annual business cycle. Nevertheless, my business was severely damaged during the Corona period. Do I deserve any compensation?

Businesses established at the beginning of this year are entitled to a monthly grant of NIS 4,000-3,000.

In the previous plan, a 25% exemption from property tax was granted, was the exemption extended?

Yes, if it is a business that has hit 60% of its annual turnover, or more, it will be entitled to full exemption from property taxes. 

Is there any money left in the State Guaranteed Loan Fund?

Under the new plan, the fund has been increased from NIS 22 billion to NIS 50 billion. Businesses can apply for a fund and enjoy a one-year rebate and subsidized interest. 

When will the self-employed receive the payment they deserve under the new plan?

On Wednesday, July 15, the funds are to be deposited in the bank accounts of anyone already recognized as eligible. Even those who succeed in filing a lawsuit will soon be able to enjoy the money soon. Prime Minister's Promise: This time the systems are being practiced and the money will be transferred faster than last time - to the salaried and self-employed. 

Source: israelhayom

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