Breaking Update

Government Agrees to State Assistance for Daycare During Iran War

Israel's government will offer state assistance to daycare centers amid the Iran war, refunding parents and advancing caregiver salaries.

Economy

Jerusalem, 23 March, 2026 (TPS-IL) — Israel’s Ministry of Finance, in cooperation with the Ministry of Labor and the recognized daycare organizations (Semel Daycares), reached an agreement on state assistance for the period of the war with Iran in March: refund of parental payments and salary advances for caregivers, with the aim of providing a response to the economic challenges and maintaining the stability of the supervised Semel Daycares for young children.

The agreement is based on the state-funded compensation outline for businesses and the IDF (Israel Defense Forces), and is intended to provide financial certainty to parents and staff, and ensure the return of supervised dormitories to activity as soon as Home Front Command guidelines allow it.

Summary highlights:

Refund to parents: Understanding the financial burden on families, it was agreed that approximately 85% of parents’ payments for the period in which the dormitory was not operating will be refunded.
Payment for caregivers: As part of the agreement, a solution will be provided for payment for caregivers through the Halat fee, along with additional solutions.
Functional continuity: The flow of subsidy funds will provide organizations with cash flow flexibility, and will ensure that the dormitories are prepared for a rapid return to full activity, subject to Home Front Command guidelines.

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