Corona Virus in Israel: help for employers in Israel - June 2020
The law on government aid to employers in Israel has been passed.
Employers who have taken back employees, or some of their employees, who have been on unpaid leave are entitled to a subsidy for each employee who is reinstated in the company.
In this article, we'll summarize the subsidy and the conditions for claiming it.
Who is eligible for employer assistance in Israel?
An employer with an active employer file before 02/29/2020 and who has not closed it until 05/31/2020.
The employees eligible to grant subsidies are :
Employee's personal status
Israeli resident
The employee's salary is subject to income tax and Bitouah Léoumi.
Salary amount
The employee's salary must be at least 3,300 shekels gross / month for all the months you apply for the subsidy. (4 months maximum).
Employee employment status
He or she is at least 18 years old and meets one of the following 2 criteria:
An employee who was unemployed in the period 1.1.20 - 29.02.20 (i.e. had no job prior to the corona).
He was dismissed / sent on unpaid leave during the period 1.3.20 - 30.4.20 by the same employer who wishes to take him on board.
Employee financial status
it meets one of the following criteria:
he is entitled to unemployment benefit for the month of May,
He is over 67 and eligible for a subsidy,
He is entitled to a vital minimum allowance subsidy for the month of May.
An employee who is no longer entitled to unemployment benefits in May therefore does not fall within these criteria.
Employee status in relation to employer
It must not meet the following criteria:
He is the employer himself,
He is a salaried shareholder of his company, (Baal Shlita)
He's close to the employer,
He's a foreign employee,
The state already grants the employer a subsidy for the employment of the employee for the months covered by the aid. (MASSA trainee etc...)
The number of employees working for the same employer in the month concerned.
Employees who were laid off during the month concerned, or sent on unpaid leave (unless they returned to work before the end of the month with that employer), are not included.
Ex: you sent an employee on unpaid leave on 5.6.2020 and you rehire this employee on 27/06/2020. This employee will count towards the number of employees for the month.
Grant amount :
Employees returning to work in the period: 19.4.2020 - 30.4.2020
875 Shekels per month for 4 months, starting in June.
Condition: the total number of employees in April 2020 is greater than the number of employees in March 2020.
Ex: According to the above conditions, you have 3 employees during the month of March (not including employees who have been sent on unpaid leave). On 20.4.2020, you take over an employee who was on unpaid leave during the month of March,
Your number of employees for April is therefore 3+1 = 4.
You meet the criteria and are eligible for the grant.
Employees returning to work in the period: 1.5.2020 - 31.5.2020
875 Shekels per month for 4 months, starting in June.
Condition: the total number of employees in May 2020 is greater than the number of employees in April 2020.
Ex: According to the above conditions, you have 3 employees during the month of April (employees sent on unpaid leave are not taken into account).
On 10.5.2020, you take on an employee who has been on unpaid leave during the months of March and April,
Your number of employees for May is therefore 3+1 = 4.
You meet the criteria and are eligible for the subsidy for employers in Israel.
Employees who returned to work in June
Grant amount: 1,875 Shekels per month for 4 months, starting in June.
Conditions:
The total number of employees during the month concerned (June - September) 2020 is greater than the number of employees present in May 2020.
The employee must have returned to the company by the 15th of the month in question.
Ex: According to the above conditions, you have 3 employees during the month of May (not including employees who have been sent on unpaid leave).
On 10.6.2020, you take on an employee who was on unpaid leave during the months of March - May. Your number of employees for June is therefore 3+1 = 4.
You meet the criteria and are eligible for the subsidy for employers in Israel.
Employees returning to work in July
Grant amount: 1,875 Shekels per month for 4 months, starting in July.
Conditions:
the total number of employees during the month concerned (July - October) 2020 is greater than the number of employees present in June 2020.
The employee must have returned to the company by the 15th of the month in question.
Ex: According to the above conditions, you have 3 employees during the month of June (not including employees who have been sent on unpaid leave).
On 10.7.2020, you take over an employee who has been on unpaid leave.
Your number of employees for the month of June is therefore 3+1 = 4.
You meet the criteria and are eligible for the subsidy for employers in Israel.
Key points:
If the employee works for several employers, the subsidy goes to the employer paying the highest salary. According to the employee's declaration.
The employer will be required to sign a certificate attesting to the accuracy of the declaration.
The grant is not subject to VAT.
The subsidy is paid to each eligible employer. We do not check for any drop in the employer's sales. (unlike other subsidies).
Payment within 21 days.
As a second step, the government has promised to provide a subsidy to employers who have kept their employees on in March-April.
The subsidy for self-employed employers is subject to bituah leumi (this income is taxable).
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