Those who go on unpaid leave due to Iran war to get unemployment benefits — Finance Ministry

Sharon Wrobel is a tech reporter for The Times of Israel

Finance Minister Bezalel Smotrich leads a Religious Zionism faction meeting at the Knesset in Jerusalem, January 5, 2026. (Yonatan Sindel/Flash90)
Finance Minister Bezalel Smotrich leads a Religious Zionism faction meeting at the Knesset in Jerusalem, January 5, 2026. (Yonatan Sindel/Flash90)

The Finance Ministry presents an initial compensation framework for employees who need to go on unpaid leave to take care of children while the educational system remains closed or for other reasons related to the war with Iran.

According to the emerging framework, led by Finance Minister Bezalel Smotrich, an employer, in agreement with an employee, may place an employee on unpaid leave. For the unpaid leave period, the employee will receive unemployment benefits from the government, subject to eligibility conditions.

For the span of the war, the government will shorten the unpaid leave period that makes workers eligible for unemployment benefits from 30 days to 14 consecutive days, the Finance Ministry says. However, unemployment benefits will not cover the entire amount of missed salaries or benefits.

The Finance Ministry announces other employment-related relief measures as well, and says the plan’s full details will be published at a later stage.

A separate outline for compensating businesses whose revenue streams have been hurt will be published after being formulated in partnership with the Histadrut Labor Federation and the business sector, the ministry says.

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