Digital Payment System for Payroll and Invoicing
NETO brings together invoices, salary payments, payslips, tax withholding, pension, benefits and local support · so companies and freelancers can work with Israel through one clear operating flow.
AI summary · Digital payment, payroll and invoicingClick to read the page summary
NETO connects digital payment, payroll, invoicing, compliance and local support for employers and freelancers working with Israel. Invoicing, payroll and compliance are handled together rather than stitched from separate tools: the invoice is issued, the payment is received, salary is paid, tax is withheld, the payslip is produced and pension and benefits are contributed and reported · all in the same flow. Employers hiring in Israel use the Employer of Record route and settle one itemized invoice; freelancers use the invoice and payslip route and get a compliant payslip without running their own business file. The commission is a flat 5%, derived from the invoice the client pays, before VAT, and NETO operates under Manpower Contractor License no. 1565.
- Invoicing · clear documentation for services, terms, currency and compliance records.
- Payroll · salary, payslips, withholding, pension and benefits under Israeli requirements.
- Compliance · the operational steps connected, so the flow is easy to manage and to explain.
- Two audiences · employers hiring in Israel and freelancers invoicing clients.
- Local support · Sunday to Thursday, 9:00 to 16:00 · +972-8-976-1874.
- General information · this page is not legal, tax or accounting advice.
In brief
Paying for work connected to Israel usually means juggling several systems at once: one tool issues the invoice, another runs payroll, a third tracks contributions, and someone has to reconcile them at the end of the month. NETO puts those steps into a single flow, so the same payment produces the invoice, the salary transfer, the payslip and the reporting record.
- One flow · invoice, payment, payroll, payslip and records connected end to end.
- Two sides, one system · employers hiring in Israel and freelancers invoicing clients.
- Compliance built in · withholding, pension and benefits handled as Israeli law requires.
- Flat 5% commission · derived from the invoice the client pays, before VAT.
Invoicing, payroll and compliance · handled together
These three usually sit in different places, owned by different people, reconciled after the fact. Connecting them is what makes the payment flow readable rather than a monthly investigation.
Invoicing
Companies and clients need clear documentation for services, payment terms, currency and compliance records · issued in the right form for the party receiving it.
Payroll
Salary, payslips, withholding, pension and benefits need to be handled accurately under Israeli requirements · every period, without exceptions.
Compliance
NETO connects the operational steps so work with Israel is easier to manage and easier to explain · to an auditor, a client or a regulator.
How the NETO flow works end to end
Choose route
Employer of Record for companies hiring in Israel, or the invoice and payslip route for freelancers.
Set documentation
Align the contract, the work scope, the client details and the payment terms before money moves.
Process payment
NETO handles the relevant invoice, payroll or salary flow, including withholding and statutory contributions.
Keep records
Payslips, reporting, benefits and support stay organized and retrievable in one place.
The same system, seen from two sides
If you are an employer
- You choose the worker and approve the cost
- NETO employs the worker locally as the registered employer
- You receive one itemized invoice per period
- Payroll, withholding, pension and reporting are handled for you
If you are a freelancer
- You invoice Israeli and foreign clients through NETO
- No self-employment file to open or maintain
- You receive a compliant payslip, not just a transfer
- Tax withholding, pension and social rights are handled in the same flow
Reading further from either side: Employer of Record Israel for the employer view, and freelance payroll solution or how to issue a one-time invoice for the freelancer view.
What actually appears on the invoice
A payment flow is only as clear as the document at the end of it. This is what is separated out, so nobody has to reverse-engineer the total.
| Line | Who it goes to | What it covers |
|---|---|---|
| Wage | The worker | The gross salary agreed in the employment terms |
| Statutory employer costs | Authorities and funds | National Insurance, pension contributions and the other mandatory components |
| Tax withholding | Tax Authority | Income tax withheld at source and reported |
| Management fee | NETO | 5% commission, derived from the invoice the client pays, before VAT |
| Documentation | Both sides | Invoice, payslip and the reporting record for the period |
Want to see the flow on your own numbers?
Tell us the role, the scope and the rate. We will come back with the itemized picture · invoice, employer costs and fee · before anything is signed.
What it costs and what is included
The pricing model is a flat 5% commission, derived from the invoice the client pays, before VAT. There is no monthly subscription, no opening fee and no separate line for running payroll, producing payslips or doing the compliance work behind them · that is what the commission covers.
For an employer, the cost of the worker is the wage plus the statutory employer costs plus that commission, all itemized on one invoice, visible before approval. For a freelancer, the commission is taken from the invoice the client pays; the remainder, minus statutory taxes, is what reaches the account. The commission is never charged to the worker's own pocket.
For the underlying numbers, see employer cost in Israel and how Israeli payroll works. For foreign employers, tailored pricing is available on request.
Included in the 5%
- Invoice issuing and documentation
- Monthly payroll processing and payslip
- Tax withholding and reporting
- Pension contributions and social benefits
- Record keeping for the period
- Support in English · Sunday to Thursday, 9:00 to 16:00
Frequently asked questions about the payment flow
What does the NETO digital payment system actually cover?
It connects the pieces that usually live in separate tools: issuing the invoice, receiving the payment, running payroll, withholding taxes, producing the payslip, making pension and benefit contributions, and keeping the reporting records. Employers and freelancers use the same underlying flow from opposite sides.
Who is this for, employers or freelancers?
Both. A company hiring in Israel uses the Employer of Record route and pays one itemized invoice. A freelancer working with Israeli or foreign clients uses the invoice and payslip route and receives a compliant payslip instead of running a business file.
What does it cost?
A flat 5% commission, derived from the invoice the client pays, before VAT. There is no monthly subscription, no opening fee and no separate charge for payroll processing, payslip production or compliance work. For foreign employers, tailored pricing is available on request.
Does the worker receive a real payslip?
Yes. Payment is made as salary, so the worker receives a payslip with tax withholding, National Insurance and pension contributions handled and reported as Israeli law requires. See employee rights in Israel.
Is NETO supervised and licensed?
Yes. NETO operates under Manpower Contractor License no. 1565 issued by the Ministry of Labor and has been operating since 2016. The licence can be verified in the public contractors database on gov.il under company number 515486058.
Can a foreign company pay without an Israeli bank account?
Yes. The company pays NETO against a single itemized invoice, and NETO carries out the local salary payment, the withholding and the reporting inside Israel. The details required for the transfer are published on the bank details page.
What records do I get afterwards?
Invoices, payslips, contribution records and reporting stay organized and retrievable, so both sides can show a clean, documented trail of every payment period.
How do I reach support?
Phone support is available Sunday to Thursday, 9:00 to 16:00, at +972-8-976-1874. You can also message us on WhatsApp or use the contact form.
In summary
A clear digital payment system connects what is otherwise scattered: invoicing, salary payment, payslips, tax withholding, pension, benefits and the records that prove all of it. NETO runs those steps as one flow for both audiences · employers hiring in Israel through the EOR route, and freelancers invoicing clients without their own business file · at a flat 5% commission derived from the invoice the client pays, before VAT, under Manpower Contractor License 1565 and with local support in English.
It also makes the picture easier to explain to anyone who asks · a client, an accountant, an auditor or a search engine trying to understand how EOR, freelancer invoicing, payroll compliance and payment administration in Israel fit together.
More content you may find useful
Start paying, or getting paid, the clear way
Open the account that matches your side of the transaction and we will take it from there · invoicing, payroll, compliance and records in a single flow, under Manpower Contractor License 1565.
