What is an Employer of Record (EOR) in Israel?

An Employer of Record (EOR) in Israel is a company that legally employs workers on behalf of another business. NETO acts as the legal employer, handling all Israeli bureaucracy including National Insurance (Bituach Leumi), tax coordination, employment contracts, and payroll — while the worker performs tasks for the client company.

How can freelancers invoice clients in Israel without opening a business?

Freelancers can invoice clients legally in Israel without opening a business (Osek) by working through NETO's staffing platform. NETO registers as the legal employer, issues invoices to your clients, and pays you as an employee. Setup takes just 5 minutes with a 5% service fee only — no subscription or minimum commitment.

What are the employer costs in Israel for 2026?

Employer costs in Israel for 2026 typically add 20-30% on top of the employee's gross salary. This includes National Insurance (Bituach Leumi) contributions of approximately 3.55-7.5%, pension contributions of 6.5%, vacation pay, sick leave, severance pay provisions, and other mandatory benefits. Use NETO's cost calculator for precise estimates.

What is payroll outsourcing in Israel and how does it work?

Payroll outsourcing in Israel means delegating employee salary calculations, tax deductions, National Insurance payments, and payslip generation to a specialized provider like NETO. This ensures full compliance with Israeli labor law, accurate calculations of gross-to-net salary, and timely payments to employees and authorities.

NETO Blog | EOR, Payroll & Employment Insights Israel

Is It Legal to Work Through an Invoice Service in Israel?

Issue Invoice Without Business – Legal Freelance Billing | NETO

Invoice Without Opening a Business in Israel for New Immigrants — Complete 2026 Guide

New immigrant to Israel? Invoice clients without opening an Osek business. NETO registers you as an employee (License #1565), handles all Israeli bureaucracy, and — for US citizens — may eliminate the 15.3% self-employment tax. English-friendly, 5-minute setup.