End of unemployment payments set for June 30

Following Israel’s return to almost full activity after the removal of coronavirus restrictions, Israel’s payments for people on unpaid leave from work will end at the end of June, Finance Minister Avigdor Liberman said Tuesday.

Solutions will be provided for unemployed people aged 45 and over, as well as a flexible plan for workers in industries that have not yet been able to return to full employment, such as tourism.

The announcement was expected. The economic safety net that supported hundreds of thousands of unemployed Israelis throughout the pandemic was scheduled to end on June 30.

Critics say that the extensive safety net program had encouraged people to stay on what was essentially a paid vacation instead of looking for new work during the pandemic. Liberman had said that he would take measures to drive people back to the workforce, with the exception of certain groups.

“The economy has been fully open for close to 4 months, and the unemployment rate is lower than 7.5%, which is the rate set by the previous government for when benefits will stop. There are currently over 130,000 job vacancies in the economy, so it is clear that the broad unemployment policy is no longer correct for the economy,” Liberman said. “However, there are still a limited number of unemployed older people, underprivileged pregnant women and tour guides, and it is important not to abandon them. That is why we have identified solutions for them. We will continue to act with full responsibility for the citizens and for the Israeli economy.”

A number of details and conditions were revealed for the first time Tuesday:

• Unemployed people over the

age of 45 will be entitled to an increase of half of the days that they were eligible for benefits during the pandemic period.

• Before the COVID-19 crisis, in

order to be entitled to unemployment benefits, a person had to work 12 months out of the last 18.

That was shortened to six months during the crisis, and that will continue through September. From October onward, the qualifying period will increase to 10 months.

• Needy people receiving double benefits – unemployment payments as well as other government assistance – can continue to do so through the end of 2021.

• Continued payment of double

benefits – In order to address the weakened populations who are entitled to unemployment benefits and additional benefits, the freezing of benefits will continue to apply until the end of 2021.

• In order to encourage unemployed workers to seek vocational training or retraining, a 30% cut in unemployment benefits for people in such programs will be canceled.

• In order to receive benefits,

people losing their jobs will have to meet certain requirements that were in place before the crisis.

• Through 2021, maternity benefits to mothers who were unemployed before giving birth will continue.