Knesset Approves Economic Assistance Plan Law for Businesses Affected by Operation Roaring Lion

Salary compensation equals either 75 percent of qualifying period salaries multiplied by 1.25, or the average national monthly salary for National Insurance Institute purposes in March 2026 multiplied by the number of qualifying employees and then by 1.25, minus any reserve duty reimbursements.

A qualifying employee is one whose employment continued during the period. The minimum monthly compensation for these businesses is NIS 4,980.

Smaller businesses with base year sales between NIS 12,000 and NIS 300,000 may receive between NIS 1,864 and NIS 14,940 per month depending on base sales and the extent of sales reduction, multiplied by two for the qualifying period. Exceptions exclude public institutions, kibbutzim, partnerships, certain builders, land owners, wholesalers, retailers, financial institutions, precious stones dealers and others.

Compensation is subject to caps multiplied by two for a two-month period. Businesses with base year sales up to NIS 100 million face a NIS 600,000 cap. The cap rises by 0.3 percent of the amount over NIS 100 million for sales between NIS 100 million and NIS 300 million.

For sales between NIS 300 million and NIS 400 million the cap is NIS 1.2 million.

The Israel Tax Authority is required to respond to claims within eight months and must pay the balance due within 14 days after any questions are resolved. Businesses have four years to correct errors. Those who received compensation for June 2025, October 2023 or November-December 2023 may claim an upfront payment of up to 80 percent of that prior amount.

Others may request 5.6 percent of average monthly expenses in 2025. Alternatively the authority should pay 60 percent of the calculated amount within 21 days of a claim and an additional 10 percent after 150 days. Different rules apply to exempt dealers with annual sales up to NIS 122,833 in 2026, and further clarification is expected.

In practice an accountant typically enters data into the authority's system, which then calculates the payment. The new online compensation claim system opened in limited form immediately after the law passed.