Smotrich presents business compensation plan

Minister of Finance Bezalel Smotrich today presented the businesses compensation plan for those affected by the Iran war. This plan is based on the same principles applied in compensating businesses whose revenue was hit by the 12-day war last June with an unemployment compensation model for employees put on unpaid leave. As in last year’s war against Iran, the plan is being published on the 11th day of the operation following a period of uncertainty for businesses and employees.

Smotrich puts finishing touches on war unpaid leave scheme

“We will now present the extremely comprehensive package that we are providing for businesses throughout Israel and for businesses near the northern border, which are obviously facing a completely different situation,” Smotrich said. “One format will be applied to Israel as a whole, while a more extensive one will be available for residents of northern Israel.”

Smotrich added that the government had chosen to continue the model already applied in previous wars. “We are using the very effective format that was already tested in the 12-day war last June and the Iron Swords War,” he said. According to Smotrich, the format, which he said had been reached with the consent of the business associations, the Histadrut, and the Knesset, can be speedily applied. “The legislation already exists, the regulations already exist, and the computer systems already exist,” he explained.

Ministry of Finance Budget Department Deputy Director Kfir Battat outlined the plan’s details. “First of all, the initial criterion for grants to businesses is a decrease of at least 25% in turnover. This is the same criterion that has been used since the Covid-19 pandemic, including in the Iron Swords War and the 12-day war last June, and we will now apply it to Operation Roaring Lion.

“Secondly, it applies only to businesses whose revenue does not exceed NIS 400 million,” he pointed out. “As we said, this solution is primarily for small and medium-sized businesses. We have repeatedly seen that it is the right answer. Large businesses can absorb a relatively short period of reduced cash flow, as we usually see in their subsequent figures. Turnovers of large businesses also rise far above their prewar levels in compensation for what the public did not buy when business came to a halt.”

Published by Globes, Israel business news – en.globes.co.il – on March 11, 2026.

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