The format of compensation for businesses and payment of unpaid leave has been published

The right to compensation will be received by companies with an annual turnover of 12 thousand to 400 million shekels, whose turnover decreased in March 2026 by no less than 25% compared to March 2025 (for those reporting monthly) or whose turnover decreased in March-April 2026 by no less than 12.5% compared to March-April 2025 (for reporting every two months).

Compensation amounts based on turnover:

With an annual turnover of 12-50 thousand shekels – a single payment of 1833 shekels for any level of drop in turnover above the minimum requirement.

With an annual turnover of 50-90 thousand shekels – 3300 shekels at any level of drop in turnover above the minimum requirement.

With an annual turnover of 90-120 thousand shekels – 4400 shekels at any level of drop in turnover above the minimum requirement.

With an annual turnover of 120-150 thousand shekels – from 2776 shekels (with a fall of 25-40%) to 8328 shekels (with a fall of up to 100%).

With an annual turnover of 150-200 thousand shekels – from 3273 to 9819 shekels

With an annual turnover of 200-250 thousand shekels – from 4190 to 12570 shekels

With an annual turnover of 250-300 thousand shekels – from 4897 to 14691 shekels

Subsidy to cover fixed costs calculated based on the percentage drop in turnover multiplied by average monthly expenses for 2025 according to VAT reporting. Odds: when falling by 25-40% – 7%, up to 60% – 11%, up to 80% – 15%, up to 100% – 22%.

Salary subsidy calculated on the basis of the salary actually paid in March 2026, multiplied by 75% and the percentage of the drop in turnover. The subsidy ceiling is the average salary in the country (NIS 13,773), multiplied by the number of employees, multiplied by the percentage drop in turnover. For enterprises with a turnover of over 300 thousand shekels and up to 400 million shekels, the wage subsidy is limited to 600 thousand shekels.

The Ministry of Finance has extended the compensation mechanism also to non-profit organizations. Organizations that have at least 25% of their operating income and that have suffered damage as a result of the current security situation will be entitled to compensation.

At the same time, the Ministry of Finance admits that there are organizations that do not have an “operating income” of 25%, but they were seriously damaged due to military restrictions. A separate compensation scheme has been developed for them.

Paid Leave Scheme

The Ministry of Finance has established that payments for unpaid leave (robe) will be made only to those who have been on such leave for at least 14 days in a row. This provision is likely to face significant resistance during the legislative process in the Knesset, since the vast majority of workers are not covered by this scheme.

Consequential damage and rental

For indirect damage (for example, a pizzeria or hair salon damaged by a missile and unable to reopen), compensation is paid for six months of eligibility – until October 2026.

Owners of properties that were rented at the time of the damage or within the three preceding months are entitled to compensation for lost rent – provided that the property has been unusable for at least one month and no rent has been received during the restoration period. The amount of compensation is determined based on the last rent received – also until October 2026.

Application procedure

The application with attached documents must be submitted within 30 days. 21 days after the initial inspection you can receive an advance of 60%. A final decision on entitlement to compensation is made within 150 days; If this deadline is violated, an additional 10% is paid. If after eight months a decision has not been made, the application is granted in full. There is a possibility of appealing the decision.

Budgetary structures, the state, state-owned companies, financial institutions and health insurance funds are excluded from the scope of the law.