A new compensation framework has been formulated for private daycare centers and government daycare facilities, following the suspension of operations during the war.
According to the details, the institutions will be eligible for state compensation through a nationwide mechanism, intended in part to enable a significant refund of tuition payments to parents.
Under the plan, there are three main compensation tracks.
The first track is based on a decline in revenue, where refunds given to parents for periods without activity are considered a loss of income. Based on this loss, the state grant will be calculated, including a component compensating for employee salaries and paying fixed expenses.
The second track is intended for smaller frameworks, including family-run daycare centers and private caregivers whose annual revenue is below 300,000 shekels. These frameworks will be eligible for compensation of up to 15,000 shekels per month, depending on the extent of the income loss, including that caused by refunds to parents.
The third track allows daycare operators to place staff on unpaid leave, a step that reduces salary expenses and enables operators to return a significant portion of payments to parents. At the same time, the state does not intervene in determining the refund amount, leaving the decision to each daycare center according to agreements with parents and their expense structure.
It was also clarified that regulated daycare centers are also eligible for the compensation framework, similar to private daycares, and will be able to use it to return a significant portion of payments to parents.
The plan has not yet entered into effect and is expected to be submitted for Knesset approval, after which applications for compensation can be filed through the Israel Tax Authority.