Government: Financial Support Package for Reserve Officers and War-Affected Individuals

In response to the ongoing "Iron Swords" war, Israel's Finance Minister, Bezalel Smotrich, and Defense Minister, Yoav Galant, have unveiled a comprehensive financial aid package aimed at supporting the nation's reserve officers and those affected by the conflict. This financial relief package, contingent upon government approval, includes a range of benefits to ease the economic burdens resulting from the war.

Here are the key highlights of the package:

1. Grants for Reserve Officers:

    •    A one-time grant of up to NIS 1,100 for reserve officers, accrued from the eighth day of service at a rate of NIS 70 per day.

    •    An additional grant of NIS 2,000 for reservists who are parents of children up to the age of 14, provided they have served for at least eight days.

    •    A 40% increase in the minimum wage for reserve service, now set at NIS 300 per day.

    •    Regular monthly payments for reserve compensation under Order 8, as opposed to the usual end-of-service payment.

2. Appreciation Fund:

    •    The establishment of a NIS 70 million appreciation fund to address the economic hardships faced by reserve officers and their families as a result of their participation in the war.

    •    The fund will process applications based on specific criteria and provide assistance to business owners, students, family owners, and reservists whose primary residence is not in Israel.

    •    Compensation for soldiers and reservists who had to cancel flights and vacations due to their wartime service.

3. Financial Support for War-Affected Individuals:

    •    Payment advances for reservists, with full compensation for salaried individuals and 125% for the self-employed.

    •    Elimination of the imputation of car use value for partial monthly use (averaging NIS 3,000 per month).

    •    Postponement of reporting obligations to the Income Tax and National Insurance, with special provisions for evacuees.

    •    Special grants for each reserve position, up to NIS 1,100.

    •    Additional grants of NIS 2,000 for reservists with children under the age of 14.

    •    An increase in the minimum payment for a reservist to approximately NIS 9,300 per month.

4. Assistance to Evacuees:

    •    100% salary support for both employees and the self-employed.

    •    Full financing for evacuees, covering accommodation and food, or cash payments in lieu of hotel expenses.

5. Support for Businesses:

    •    For settlements within 0-7 km in the south, 0-9 km in the north, and Ashkelon, full compensation for existing and future damages.

    •    Settlements within 7-20 km in the south, including Ofakim, will receive full compensation based on loss in turnover or employees' absence.

    •    In the rest of the country, businesses with varying turnovers will receive assistance, with immediate reimbursement to employers for payment to employees for reserve days.

    •    Postponement of repayment of existing state-guaranteed loans and offering state-guaranteed loans to businesses with different annual turnovers.

These measures come as the "Iron Swords" war enters its 27th day, and the Israeli economy faces significant challenges. The Israeli government is taking proactive steps to alleviate the financial strain on reserve officers and those affected by the conflict, as well as provide support to impacted businesses. The package is subject to government approval and is a testament to the nation's commitment to its citizens during these challenging times.