'Safety Net' program approved in Knesset with 67 MKs in favor
The plan will offer state-aid to Israelis hurt by COVID-19's economical impact.
By HAGAY HACOHENIsraeli Prime Minister Benjamin Netanyahu sits next to foreign minister Israel Katz during a cabinet meeting(photo credit: REUTERS)
The Knesset approved on Tuesday evening "Safety Net" plan championed by Prime Minister Benjamin Netanyahu and Finance Minister Israel Katz with 67 MKs in favor. The plan is coupled with the "Check for Every Citizen" plan which is also expected to be approved. Aimed at addressing the economic crisis caused by the coronavirus pandemic and the health measures taken by the government, the Safety Net plan offers an extension of unemployment benefits until June 2021 or until the Central Bureau of Statistics reports unemployment in the country is below 7.5%. In case unemployment goes below 10% the benefits would be decreased to 90%. Those undergoing vocational training will be given full benefits, unlike the previous policy of cutting back one third of the pay. Those over the age of 67 who were sent on unpaid leave or fired will be offered an adjustment grant until June 2021. Self-employed Israelis who report a decline of 40% in business volume will receive a grant every 60 days of up to NIS 15,000. To ensure the maximum amount of aid is offered, it would be possible to point to either 2019 or 2018 as reference points to the loss of income. It would be possible to ask for compensation for the period beginning in May 2020. Businesses that reported a profit of NIS 100 million, NIS 200 million, and up to NIS 400 million per year will also receive scaled aid if they can prove a decline in profits of 40%, 60% or 80%. NIS 100 million will be earmarked to aid foundations as, due to the crisis, less donations are available. The qualifications to get the aid will be decided by Katz during the month following the program passing third reading.
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