Approved: The unpaid vacation law for employees over 45 - 200,000 will get their benefits

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by Ifi Reporter Category:Government Jul 1, 2021

The unpaid vacation law was approved in the Knesset on second and third reading at the end of an exhausting night of debates and about 75 votes in the plenum. The law stops extending unemployment benefits to over 200,000 Corona unemployed by the age of 45. This means they will still receive payment for the month of June but will not receive any payment for July. The Minister of Finance passed in the Knesset his decision to take a stricter line on the issue of extending unemployment benefits with almost no changes, with the help of the chairman of the finance committee from his party, MK Alex Kushnir.
The extension that about 160,000 people aged 45 and over will receive will be equal to 50% of their original eligibility period, ie about three months. The amount of unemployment benefits received by the unemployed who are in the extension period will be only 85% of the original entitlement amount. Of course new unemployed people who meet the eligibility conditions of all ages will be entitled to the full unemployment benefit and the full eligibility period.
In fact, only one significant change was introduced in the Knesset - the corona grant for the unemployed retired with disabilities was extended by three months. But the prevailing assessment in the Knesset is that it was a "goat," meaning that the Treasury proposed canceling the grant so that Knesset members would fight to return it and not fight the main decision.
From the beginning of the Corona crisis, unemployed people aged 67 and over, who have a low pension (up to NIS 5,000), received grants amounting to NIS 1,000-4,000 in inverse proportion to the level of their pension. In the next three months, the 22,000 eligible people will receive grants that will amount to 90% of the original grant in the first month, in the second - 80% and in the third 70% of the amount they have received so far.
Unemployed people who have lost their unemployment benefits (and also those who have never received unemployment benefits) are offered the following solution, although it will be introduced in another law. If he finds an employer who begins to employ them part-time, the state will pay the unemployed unemployment benefits on the balance of his wages for three months. The Treasury wanted to offer this solution only to those who would return to work by the end of June to target the grant mainly to the tourism industry, whose employers were aware of the plan in advance. Finance committee members thought it was illogical to pass a retroactive law. Therefore, it was determined that those who return to part-time work at a lower wage than their previous salary by the end of June will receive a grant for four months and those who return in July will receive three.
Two other problems that have been resolved are the payment of maternity benefits to mothers who became pregnant during their period of unemployment and a reduced qualifying period for those who returned to work during the Corona crisis and became unemployed again. To make it easier for unemployed disabled people under the age of 45 to find work, employers will be offered a subsidy of 20% of their wages. It is doubtful that this will return many disabled people to work. Single mothers, EL AL employees, tour guides for foreign tourists under the age of 45 were left at this stage without a solution.

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