Gov't allocates NIS 150m to firms for new hires

The social economic cabinet has approved a proposal by Minister of Industry, Trade and Labor Eli Yishai and Minister of Finance Ronnie Bar-On to allocate NIS 150 million to enterprises to encourage them to hire. Priority will be given to enterprises in outlying areas and communities around the Gaza Strip.

Aid will also granted to companies nationwide with high proportion of minorities, haredim (ultra-orthodox), and handicapped employees.

Special budgets will be allocated for the establishment of R&D centers in outlying areas that will provide high paying jobs. These centers will serve as job anchors that will support educational, cultural, and other activities in the areas.

Bar-On and Yishai noted that their proposal was intended to foster the hiring of new employees in view of the global economic crisis and its repercussions on Israel. The allocations will subsidize salaries to encourage hiring. Yishai added that the aid would go to companies as participation in salary costs of newly hired employees. Bar-On said that the establishment of R&D centers in outlying areas would encourage the migration of strong middle class populations to these areas.

Published by Globes [online], Israel business news - www.globes-online.com - on January 8, 2009