- March 8, 2026
- 6:39 pm
- Israel
During the war, Israel’s economy is once again facing a problem familiar from previous crises: thousands of workers physically cannot go to work. Schools and kindergartens are closed, children stay at home, and parents are forced to choose between work and family safety.
The Israeli Ministry of Finance has presented an initial compensation model for employees who temporarily lose the ability to work. It is a mechanism similar to the schemes used at the beginning of the “Iron Swords” war, as well as during the “People as a Lion” operation.
The decision primarily concerns families with children and workers whose employment is directly disrupted by the conditions of the war.
How the compensation scheme for workers will work
Unpaid leave (“halat”) with allowance
The key mechanism proposed by the Israeli Ministry of Finance is sending workers on unpaid leave (HALAT) with subsequent unemployment benefits.
According to the preliminary scheme:
the employer can send an employee on unpaid leave
this is possible only with the employee’s consent
during such leave, the person will be able to receive an allowance from the state
Payments will be made by the National Insurance Institute of Israel (Bituach Leumi).
However, there are conditions. Currently, the Ministry of Finance has named one key criterion: the minimum duration of unpaid leave, after which the right to benefits begins, must be 14 days.
It is expected that the final scheme will contain additional requirements and clarifications.
Registration with the employment service
According to Bituach Leumi rules, a worker sent on HALAT must register with the Employment Bureau.
If unpaid leave lasts more than 30 calendar days, the worker is entitled to full unemployment benefits.
However, in wartime conditions, the government often shortens this period.
For example, during the previous military crisis with Iran in the summer, payments were made for 10 out of 12 missed working days.
In the current situation, a final decision on shortening the terms has not yet been made, but the Ministry of Finance is already discussing the possibility of an accelerated compensation model.
Parents with children under 14: a separate solution
One parent will be able to stay home
Finance Minister Bezalel Smotrich announced an additional support measure for families.
According to the proposed model, in families with at least one child under 14 years old, one parent will be able to stay home by taking unpaid leave.
This measure will be in effect until the end of the war.
The reason is obvious: in the conditions of hostilities, the educational system operates unstably.
Education Minister Yoav Kisch stated that schools and childcare facilities will not open in the near future. He referred to assessments by the Israeli government and international partners.
According to Kisch, Prime Minister Benjamin Netanyahu and US President Donald Trump suggest that the military phase of the conflict may continue for several more weeks.
In such a situation, families face a simple but harsh reality: children need to be at home, and parents must decide who will temporarily leave work.
Pressure on the Ministry of Finance and the political background
Interestingly, the first announcement about compensations was published by the Ministry of Finance only after sharp criticism of the finance minister.
Smotrich previously demanded to open the economy as soon as possible to reduce economic losses.
However, an obvious problem arose: schools and kindergartens remain closed, meaning many parents physically cannot go to work.
That is why the issue of compensations has become one of the most discussed in the Israeli economy in recent days.
In the midst of this discussion, NANews — Israel News | Nikk.Agency notes that the situation shows a classic wartime conflict: the state demands the economy return to work, but the infrastructure of civilian life — education, childcare, and safety — remains limited.
What will happen with compensations for businesses
The Ministry of Finance is preparing a separate model
So far, only basic solutions for workers have been announced.
However, the government is also preparing a separate compensation program for businesses that are losing income due to the war.
According to Israeli media, including Ynet, the compensation project for employers and entrepreneurs should be published in the coming days.
Preliminarily, it involves:
compensations for lost revenue
subsidizing salaries
support for small businesses
mechanisms for temporary tax deferral
Currently, many workers have already missed about six working days, and pressure on the government continues to grow.
Businesses are expecting clear rules of the game, as without state support, some companies may face serious financial problems.
The HALAT system during the war once again becomes the main tool for protecting workers in Israel.
If the new compensation scheme is fully approved, it will allow parents to temporarily stay home with their children without completely losing income.
For the Israeli economy, this solution could become a key factor in stabilization amid the ongoing military conflict.