Gov't extends unemployment benefits until mid-August

Prime Minister Benjamin Netanyahu and Minister of Finance Israel Katz have decided to extend unemployment benefits for those placed on unpaid leave due to the Covid-19 crisis until mid-August. The benefits also include those aged 67 and over put on unpaid leave and who are not yet ready to claim senior citizens pensions. Towards the end of the extension, the situation will be reviewed and a decision made dependent on the unemployment situation at the time.

The decision was taken in consultation with the Governor of the Bank of Israel Prof. Amir Yaron and Head of the National Economic Council Prof. Avi Simhon and is part of government policy of stimulating the economy and encouraging a return to work, while being committed to those who have not resumed working.

Legislation is required for this decision and to speed it up, it will be passed as an amendment to the Bill for Grants for Over 67s which is ready for its second and third readings in the Knesset.

Last week Minister of Welfare Itzik Shmuli and National Insurance Institute director general Meir Spiegler proposed such an extension until the end of August, estimating that it would cost the government about NIS 3.8 billion.

Published by Globes, Israel business news - en.globes.co.il - on June 28, 2020

Gov't extends unemployment benefits until mid-August

Employees in Israel placed on unpaid leave due to the crisis will now be entitled to unemployment pay until mid-August.