Employer of Record in Israel
The complete guide: how an EOR works, what it costs, and how to hire without a local entity.
Read moreNETO vs Deel vs Remote vs Papaya GlobalEmployer of Record in Israel · Compared for 2026
Deel, Remote, and Papaya Global are excellent platforms for hiring in 100+ countries. NETO is the Israel specialist: 5% of payroll, licensed manpower contractor #1565, and payroll built around Israeli labor law. Here is an honest comparison.
Manpower license #1565 Ministry of Labor supervision Operating since 2016
5% of payrollNo setup fees, no minimums
License #1565Ministry of Labor
Quick summary · which EOR for Israel?
All four providers let you employ someone in Israel without opening a local entity. The real decision is between a multi-country platform (Deel, Remote, Papaya Global) and an Israel specialist (NETO). If Israel is one of many markets you hire in, a global platform keeps everything on one dashboard. If Israel is your main or only market, NETO's local licensing, percentage-based pricing, and labor-law depth usually win.
- Pricing: global platforms typically charge flat per-employee monthly fees; NETO charges 5% of payroll, no setup fees, no minimums.
- Licensing: NETO holds Israeli manpower contractor license #1565 with guarantees deposited at the Ministry of Labor.
- Compliance: pension, severance, and Section 102 equity are native to NETO's payroll, not one country among 100+.
- Support: NETO offers English-speaking onboarding for employers and Hebrew-native service for employees, at +972-8-976-1874.
- Multi-country teams: Deel, Remote, and Papaya Global remain the better fit when you hire across many countries at once.
Direct answer
Which Employer of Record should you use in Israel?
Choose Deel, Remote, or Papaya Global if you hire in many countries and want one platform for all of them. Choose NETO if Israel is your main hiring market: you get a locally licensed employer (manpower contractor #1565), payroll built natively around Israeli labor law, and a simple 5% of payroll fee with no setup costs or monthly minimums.
The contenders
Who are the four providers?
An Employer of Record (EOR) legally employs your worker in Israel so you do not need an Israeli entity. All four companies below do this well; they are simply built for different jobs.
Deel
A global hiring platform covering 100+ countries, popular with startups and remote-first companies. Strong self-serve product, contractor payments, and per-employee flat-fee EOR pricing (see Deel's pricing page).
Remote
A global EOR known for owning its local entities in many markets and for transparent flat per-employee pricing (see Remote's pricing page). Good fit for distributed teams across several countries.
Papaya Global
An enterprise-oriented global payroll and EOR platform with strong payments infrastructure, serving larger multi-country workforces (see Papaya Global's pricing page).
NETO · the Israel specialist
An Israeli fintech operating since 2016, focused on one market: Israel. Licensed manpower contractor #1565 under Ministry of Labor supervision, with guarantees deposited at the Ministry. One product, one country, done in depth · see NETO EOR solutions.
Pricing
Flat monthly fee vs 5% of payroll
Global EOR platforms typically list flat per-employee monthly fees on their public pricing pages, commonly in the $400 to $700 range depending on plan and country; always verify current pricing on their sites, as plans change. A flat fee is predictable and easy to budget, and for very high salaries it can work out cheaper than a percentage.
NETO charges 5% of payroll, with no setup fees and no monthly minimums. That structure scales down as well as up: a part-time developer, a moderate salary, or a single hire does not carry the same fixed cost as a full-time executive. To model the full picture, combine the fee with mandatory Israeli employer costs · our employer cost in Israel guide breaks those down.
- Flat fee wins when salaries are very high and headcount spans many countries.
- Percentage wins for part-time roles, moderate salaries, and small Israel-only teams.
- Either way, ask any provider for a written all-in quote: fee, employer costs, FX, and offboarding.
5%of payroll · no minimums
Fair-comparison note: competitor pricing above is qualitative and based on publicly listed plans at the time of writing. We do not track competitors' price changes; check Deel, Remote, and Papaya Global directly for current figures.
Side by side
NETO vs Deel vs Remote vs Papaya Global · comparison table
| Dimension | NETO | Deel | Remote | Papaya Global |
|---|---|---|---|---|
| Focus | Israel only · full depth | Global platform, 100+ countries | Global platform, owned entities in many markets | Global payroll and EOR, enterprise focus |
| Pricing model | 5% of payroll · no setup fees, no minimums | Per-employee flat fee · see pricing page | Per-employee flat fee · see pricing page | Per-employee fee · see pricing page |
| Licensed status in Israel | Manpower contractor #1565 · guarantees at Ministry of Labor | Serves Israel via its global structure · ask about local licensing | Serves Israel via its global structure · ask about local licensing | Serves Israel via its global structure · ask about local licensing |
| Israeli labor-law depth | Core business · Israeli payroll and labor law daily | Israel is one of many supported countries | Israel is one of many supported countries | Israel is one of many supported countries |
| Payroll compliance: Section 102, pension, severance | Native: pension, severance, Section 102 handled in-house | Supported per platform capabilities · confirm scope | Supported per platform capabilities · confirm scope | Supported per platform capabilities · confirm scope |
| Local support · Hebrew and English | Hebrew-native team + English onboarding · +972-8-976-1874 | English-first global support | English-first global support | English-first global support |
| Onboarding speed in Israel | Days, not months · English-speaking onboarding | Fast platform onboarding · country steps vary | Fast platform onboarding · country steps vary | Enterprise onboarding · timelines vary |
| Best for | Israel-first hiring, any team size | Multi-country startups and remote teams | Distributed teams across several markets | Large multi-country workforces |
Competitor columns describe publicly known positioning, not verified service details. Capabilities and pricing change; confirm specifics with each vendor before signing.
What Israeli payroll compliance actually involves
Israel is a rewarding but demanding place to employ people. Employment terms are shaped by statutes, extension orders, and case law, and several obligations have no exact parallel elsewhere. Whichever EOR you choose, make sure it handles all of the following as a matter of routine · this is the substance behind the "labor-law depth" row in the table, and it is where an Israel-only provider spends 100% of its time. For the full picture, start with our Employer of Record in Israel guide and the Israel payroll overview.
1
Mandatory pension: employer and employee contributions to a pension arrangement are required by extension order, with strict deposit deadlines.
2
Severance pay: severance accrues by law; many employers use Section 14 arrangements so deposits settle the obligation as you go.
3
Section 102 equity: stock options for Israeli employees need a trustee track and correct payroll reporting · see our Section 102 guide.
4
Payslip and withholding rules: itemized Hebrew payslips, income tax and National Insurance withholding, and annual reporting to the authorities.
5
Leave and hours: annual leave, sick pay, convalescence pay, travel reimbursement, and overtime rules under the Hours of Work and Rest Law.
6
Manpower licensing: a company that employs workers for others in Israel needs a Ministry of Labor manpower contractor license with deposited guarantees · NETO's is #1565.
100+ countriesone platform, one contract
Credit where due
When Deel, Remote, or Papaya Global is the better fit
An honest comparison says so plainly: if you are hiring in five countries this quarter, a specialist in one of them is not the right backbone. The global platforms earn their fees when:
- You hire across multiple countries and want one dashboard, one invoice, and one vendor relationship for all of them.
- You already have a global EOR contract and procurement prefers adding Israel to it over onboarding a new vendor.
- You need consolidated multi-country reporting, currency handling, and platform integrations at enterprise scale.
- Israel is a minor, temporary market for you and operational uniformity matters more than local depth or fee structure.
In those scenarios, Deel, Remote, and Papaya Global are excellent companies to work with. Nothing on this page argues otherwise.
The Israel case
When NETO is the better fit
If Israel is where your talent is, specialization pays. NETO does one thing: employing workers in Israel for companies that do not have a local entity · from a single developer to a full team, as covered in our EOR services for foreign companies guide.
- Israel-first hiring: your main or only market is Israel, so local depth beats global breadth · see hiring in Israel without a local entity.
- Licensed and supervised: manpower contractor license #1565, guarantees deposited with the Ministry of Labor, verifiable in the public database.
- Pricing that scales down: 5% of payroll, no setup fees, no monthly minimums · attractive for part-time and moderate-salary roles.
- Both languages, both sides: English-speaking onboarding for you, Hebrew-native payroll and support for your employee.
- Fintech backbone since 2016: payroll, payments, and compliance run on NETO's own platform, not a patchwork of local partners.
1565Manpower license · Ministry of Labor
FAQ
Frequently asked questions
Do I need a local entity to hire an employee in Israel?
No. An Employer of Record (EOR) such as NETO, Deel, Remote, or Papaya Global becomes the legal employer in Israel on your behalf. The EOR runs payroll, withholds taxes, and handles mandatory benefits, while you manage the employee's day-to-day work. You avoid setting up an Israeli company, tax files, and local bank accounts · see our full Employer of Record Israel guide.
What does an EOR in Israel cost?
Two pricing models dominate. Global platforms such as Deel, Remote, and Papaya Global typically list flat per-employee monthly fees on their public pricing pages, commonly in the $400 to $700 range; verify current pricing on their sites. NETO charges 5% of payroll with no setup fees and no monthly minimums, which usually favors part-time roles, moderate salaries, and small Israel-only teams. Remember to add mandatory Israeli employer costs to any quote.
Is NETO licensed to employ workers in Israel?
Yes. NETO operates under Israeli manpower contractor license #1565, issued and supervised by the Ministry of Labor, with financial guarantees deposited with the Ministry as the license requires. You can verify the license in the Ministry of Labor's public contractor database.
How fast can I onboard an employee in Israel through an EOR?
With NETO, onboarding typically takes days rather than months: the employee signs an employment agreement with NETO, completes Israeli tax forms, and payroll can start in the next cycle. Onboarding is available in English, and support is a phone call away at +972-8-976-1874.
What about Section 102 stock options for Israeli employees?
Section 102 of the Israeli Income Tax Ordinance gives employees favorable capital-gains treatment on equity awards, but it requires a trustee arrangement and correct payroll reporting in Israel. This is a specialist area where local expertise matters · read our dedicated guide on Section 102 stock options for foreign employers.
When is Deel, Remote, or Papaya Global the better choice?
When you hire across multiple countries and want one platform, one contract, and one dashboard for all of them. If you already have a global EOR agreement covering many markets, adding one Israeli hire to it can be simpler operationally. NETO is the stronger fit when Israel is your main or only hiring market and local depth and pricing matter most.
Does NETO support English-speaking employers?
Yes. NETO provides English-speaking onboarding and support for foreign employers, alongside native-Hebrew service for the employees themselves. NETO has operated as an Israeli fintech since 2016 · reach us at +972-8-976-1874 or via the contact page.
Can I switch from a global EOR to NETO later?
Yes, employers do move employees between EOR providers. The transition involves ending the employment with the current EOR and signing a new Israeli employment agreement, while paying attention to seniority-linked rights such as severance accrual and pension continuity. NETO's team walks you through the steps; for complex cases we recommend consulting an Israeli employment lawyer.
Ready to hire in Israel the specialist way?
Registration is quick and free. You get a licensed Israeli employer (manpower contractor #1565), payroll that speaks fluent Israeli labor law, English-speaking onboarding, and a simple 5% of payroll fee · no setup costs, no monthly minimums.
Related guides on hiring in Israel
EOR Services for Foreign Companies
What NETO handles for overseas employers: payroll, taxes, benefits, and compliance in Israel.
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Outsourcing to Israel
Why companies hire Israeli talent through outsourcing, and how to do it legally.
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