This week, the Ministry of Finance published the outline of compensation for the economy during the war. Although the outline is improved over the previous outline, it is not yet final and is supposed to undergo legislative approval in the Knesset.
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The new framework does address some of the issues raised, such as lowering the eligibility period for receiving unemployment benefits from 12 months of work to six, or the possibility of compensating businesses for unpaid leave after 14 days, instead of 30 days, but it does not provide a solution for the weakest population groups in the economy.
There is no solution for the weaker populations
Among other things, the outline does not provide a solution for hourly workers whose employers prefer not to furlough them or fire them, and instead cut their work hours. Such as waiters, or workers in essential factories.
In addition, although according to the new outline, the eligibility period for receiving unemployment benefits was cut, what about people who started a new job less than six months ago and now find themselves unemployed or placed on unpaid leave? They are not entitled to unemployment benefits.
The unemployment office in Haifa, photo: Michel Dot Com
The two weakest groups affected by the new framework are the returning unemployed – those who have already received unemployment benefits once in the past four years and whose eligibility for unemployment benefits is now significantly reduced. This group is considered one of the weakest and most vulnerable in the economy, whose wages are already low.
The second group is the elderly over the age of 67, who receive an old-age pension but do not have a pension or have a low pension and must continue to work in order to live in dignity. They are now among the first to be fired. They are not entitled to unemployment benefits, but to supplemental income that can reach a ridiculous sum of NIS 4,800.
Today, there is still no data on the number of elderly over the age of 67 who were laid off when the war broke out, but already more and more inquiries are beginning to accumulate in social organizations, from elderly people who stand helpless and do not know how they will live.
For example, the story of 73-year-old M.I. He has no pension at all and his old-age pension is NIS 2,340. He works in a factory and earns NIS 10,2, but a few days after the war broke out, he was told he was fired and his job would stop at the beginning of December. After he stops working, he will be entitled to an additional income supplement of between NIS 000,3 and NIS 000,<>.
"How am I going to live?"
"I still don't get it. How will I live? Even for food it's not enough. I'm not suicidal, but I have no way to go on living. I have nothing to live for anymore. And I know there's a lot more like me."
Tali Nir, CEO of 121 - Engine for Social Change, Photo: None
121 – Engine for Social Change welcomes the improved outline presented by the Ministry of Finance, but demands that all workers be protected. Tali Nir, the association's CEO, explains: "Despite the significant improvement in the current framework, there is still no solution for workers over the age of 67 who are not entitled to unemployment benefits at all and who work hourly."
"In addition, the eligibility period should be completely suspended and the returning unemployed should be allowed to receive unemployment benefits. The government needs to adopt these changes so that every worker affected by the war can survive economically during this time."
Last week, the association wrote to Minister of the Negev, Galilee and National Resilience, Yitzhak Wasserlauf, demanding that he act to promote the provision of an adjustment grant to the elderly under the age of 67 who were laid off, as was done during the coronavirus period.
His ministry said in response: "Due to the state of emergency and our concern for the employment of senior citizens, the department's management has turned to the National Insurance Institute in recent days in order to find a solution by changing the regulations in order to pay the dismissed full unemployment benefits. Alternatively, until the legislation is arranged, an outline of financial compensation is presented." We emphasize, no change can be made without legislation.
The Finance Ministry said in response: "The outline was agreed upon in coordination with all parties in the economy, including the Workers Union and employers, and constitutes a delicate balance between providing a social response to those who have been placed on sick leave and encouraging and creating incentives for employment."
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