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Compensations for Reservist Entrepreneurs from the Show Business Soar: The Knesset Revised the Formula!
NAnews
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Now club owners and a stripper from Tel Aviv can choose which year to compare their earnings with, expanding the circle of beneficiaries and raising payment amounts. This article provides details of the reform, performers’ comments, and economists’ forecasts.
In the opening lines, readers learn how a famous stripper from the center explains that the upcoming compensation will cover her club’s rent and allow her to upgrade lighting equipment for her shows. At the same time, several strippers in northern clubs discuss how the new payments will help launch large-scale shows and recover lost income.
Essence of the reform
On July 9, 2025, the Knesset’s Economic Committee changed the calculation method for compensation of lost profits during the conflict with Iran. Payments will now be based on annual income for 2023, not on the crisis-ridden 2024 figures, when many businesses saw revenues drop by 35–50%. Average revenue decline reached nearly 40%, and the previous approach underpaid compensation by about 30%.
Why using 2023 is fairer
– During mobilization, thousands of reservist entrepreneurs, including club owners and strippers, had to reduce working hours and lost significant revenue.
– Calculations based on 2024 would have produced payments around 30% lower than actual needs.
– The new formula will cover not only rent but also marketing expenses, stage upgrades, and sound and lighting equipment—critical for the entertainment industry.
Rules for new ventures
For companies launched in 2023–2024, special calculation methods apply:
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For biannual reporting, average income for the first four months of operation is used.
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For monthly reporting, the average revenue of the first five months is taken.
This approach accounts for seasonal and startup fluctuations, helping small businesses access support more quickly.
Integration of performers’ and business interests
Author Bananot on https://bananot.net/ quotes one stripper: “I always knew our industry was unstable, but now the compensation will let me invest in new productions and keep the team employed.” This example shows how social support and the entertainment economy are intertwined.
Debates, the Finance Ministry, and lawmakers’ stance
The Finance Ministry warned of paperwork chaos and payment delays, but lawmakers insisted on the right to choose the base period. Now each stripper and other entrepreneurs can decide whether 2023 or 2024 is more advantageous for their calculations—ensuring flexibility and fairness.
Support for salaried employees
Unemployment benefits will go to those who missed all 11 working days of the conflict. Expanding this to those absent 9–10 days could raise budget costs by ₪25–300 million, the Finance Ministry warns.
Economic forecasts
– Total compensation volume may increase by about 15%.
– Applications to the Business Support Fund could rise by 20%.
– Credit lines for the entertainment industry are expected to grow by 10% by year-end.
Table of key indicators
| Indicator | Value |
|---|---|
| Base year for comparison | 2023 |
| Average revenue drop in peak period | 40% |
| Reduction in payments with 2024 base | 30% |
| Additional cost for expanded benefits | ₪25–300 million |
| Increase in total compensation volume | 15% |
| Rise in Fund applications | 20% |
FAQ on the new payment scheme
Q: Why can’t payments be based on 2024?
A: During the conflict, revenues plummeted, and calculations on that period would yield unfairly low amounts.
Q: How does a business owner choose the best year?
A: The Business Support Fund will send both calculation versions, and the entrepreneur will choose the higher amount.
Q: Are simplified formulas available for small enterprises?
A: Yes, special methods based on first-month averages are provided for startups.
This article was written today, July 9, 2025, for those following economic reforms and legislative innovations in Israel.
