Compensation scheme for businesses harmed in "Shaagat HaAri" approved

The Knesset approved the Economic Aid Program Law (temporary order), 2026, addressing the consequences of operation "Shaagat HaAri". The law amends the Property Tax and Compensation Fund Law and provides aid to businesses and public institutions harmed by both direct and indirect damage.

Automatic advance-payment mechanism

A central innovation is an automatic mechanism for advance payments, activated in a future emergency, letting businesses receive advances quickly in the early stages of damage without new legislation.

Coverage period — March–April 2026

Affected businesses are entitled to compensation for indirect damage based on the drop in turnover, fixed expenses and the payroll component, with additional compensation for rent loss.

Eligibility threshold

A business must show at least a 25% drop in turnover versus the base period (March–April 2025); compensation applies to turnover between ILS 12,000 and ILS 400 million.

Filing claims and advances

Claims are filed via the Tax Authority's online system; advances of up to 80% of estimated compensation can be requested, with final claims from 17 May 2026.

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