Salary payment by invoice
Get paid against a compliant invoice in Israel · without opening a business.
Read moreThe Freelance Payroll Solution for Paying Freelancers in Israel
Pay freelancers the clean way · with real payslips or compliant invoices, one consolidated invoice for your company, and full Israeli labor-law compliance under license #1565.
Quick summary
A freelance payroll solution lets your company pay freelancers without running payroll yourself or risking misclassification. NETO employs the freelancer, issues a compliant payslip (or processes their invoice), handles tax and National Insurance, and sends you a single consolidated invoice.
- Pay freelancers compliantly without building payroll or opening a business per worker.
- Choose a payslip route (employment + statutory rights) or a compliant invoice route, per worker.
- NETO is a licensed Israeli manpower contractor (license #1565) and the employer of record.
- You receive one consolidated invoice each month · no per-worker filings to manage.
- Works for Israeli companies and, via Employer of Record, for foreign companies with no local entity.
Paying freelancers compliantly is harder than it looks
Sending a bank transfer is the easy part. Staying inside Israeli labor and tax law is where companies get burned.
- A freelancer with no registered business has no clean way to bill you · and you have no compliant way to pay them.
- If the relationship looks employee-like, paying "by invoice" becomes misclassification, with retroactive liability for social rights, severance and back-pay.
- Every freelancer means more paperwork: tax withholding checks, payment terms, reporting and reconciliation.
- Foreign companies often can't pay Israel-based freelancers at all without a local entity or a compliant intermediary.
The fix isn't more spreadsheets. It's a single partner that becomes the legal employer or invoicing layer for your freelancers · so payments are clean, documented and compliant by default.
The solution
NETO: your freelance payroll solution in Israel
NETO sits between your company and your freelancers and takes on the compliance burden · two ways, depending on what each worker needs.
- NETO becomes the legal employer or invoicing layer for each freelancer.
- Tax, National Insurance and statutory rights are handled for you.
- Your company settles a single consolidated invoice each month.
#1565Licensed manpower contractor
Employed through NETO, with a payslip
The freelancer becomes an employee of NETO. They receive a proper Israeli payslip and statutory rights, while doing the work for you.
Or a compliant invoice
Freelancers who prefer to invoice can do so through NETO without registering their own business · clean, legal documentation for both sides.
One consolidated invoice for you
However many freelancers you pay, your company receives a single monthly invoice from NETO. No per-worker filings to manage.
NETO is a licensed Israeli manpower contractor (license #1565). Freelancers employed through NETO receive their statutory rights under Israeli law, and your company avoids misclassification exposure.
How it works
From "we need to pay this freelancer" to a clean, documented payment · in four steps.
1 · Tell us who you pay
Share your freelancers and what each one is owed. Choose payslip or invoice per worker · NETO advises on the compliant route.
2 · NETO becomes the employer / invoicing layer
NETO employs each freelancer or sets up their invoicing, handling tax, National Insurance and statutory rights.
3 · Freelancers get paid cleanly
Each worker receives a compliant payslip or invoice and is paid on time, with full documentation.
4 · You get one invoice
Your company settles a single consolidated invoice from NETO. Done · no reconciliation marathon.
Side by side
Three ways to get freelancers paid · compared
Open a business, get paid with no rights, or run it through NETO. Here is how the routes stack up.
| Factor | Open a business (osek) | Stay unpaid · no rights | NETO freelance payroll |
|---|---|---|---|
| Registering a business | Required · tax & VAT file | Not needed | Not needed |
| Compliant documentation | Yes, but on the worker | None · paid informally | Payslip or compliant invoice |
| Statutory rights for the worker | Self-managed, often skipped | Not provided | Provided under Israeli law |
| Tax & National Insurance | Accountant & filings | Exposure & back-pay risk | NETO handles filing |
| Misclassification risk for the company | High if employee-like | High | Handled by the employer of record |
| Admin per freelancer | Per-worker paperwork | Untracked, risky | One consolidated invoice |
| Foreign company, no Israeli entity | Often not possible | Not possible | Pay via Employer of Record |
NETO is a licensed Israeli manpower contractor (license #1565). The "no rights" route exposes both worker and company; opening a business shifts the entire burden onto the freelancer.
Built for both sides of the payment
One invoiceAny number of freelancers
Whether you are the company writing the check or the freelancer waiting to get paid, NETO removes the compliance friction that usually sits in the middle.
- Companies skip building payroll and avoid misclassification exposure.
- Freelancers get paid cleanly · with rights or a compliant invoice.
Companies paying freelancers
Pay any number of freelancers compliantly without building payroll infrastructure or taking on misclassification risk. You get one invoice; NETO does the rest. For foreign companies, NETO acts as an Employer of Record in Israel.
Freelancers who want to get paid cleanly
Get paid with a real payslip and statutory rights · or issue a compliant invoice · without registering your own business. See how it works for freelancers using NETO.
FAQ
Frequently asked questions
What is a freelance payroll solution?
It's a service that lets a company pay freelancers without running its own payroll or risking misclassification. The provider employs the freelancer or processes their invoice, handles tax and social contributions, and bills the company with one consolidated invoice.
How does NETO pay freelancers in Israel?
NETO can employ the freelancer on payroll so they receive a compliant Israeli payslip with full rights, or let them invoice the platform without opening a business. Your company gets one consolidated invoice, and NETO handles tax, National Insurance and reporting under license #1565.
Do my freelancers need their own business?
No. Freelancers without a registered business can be employed through NETO and receive a payslip, or issue a compliant invoice through NETO · without the overhead of registering as self-employed.
Does this keep us compliant with Israeli labor law?
Yes. NETO is a licensed Israeli manpower contractor (license #1565). Freelancers employed through NETO receive statutory rights · pension, severance accrual, vacation and sick pay where applicable · and your company avoids misclassification exposure.
What does my company receive each month?
One consolidated invoice covering every freelancer paid through NETO that month. You don't manage individual payslips, filings or National Insurance per worker · NETO handles that as the employer of record.
Can a foreign company use this without an Israeli entity?
Yes. NETO acts as an Employer of Record, so a foreign company can pay Israel-based freelancers compliantly without a local entity. NETO employs the worker and invoices your company.
What's the difference between payslip and invoice routes?
On the payslip route the freelancer is employed by NETO and gets statutory rights. On the invoice route the freelancer bills the platform without opening a business. NETO advises which fits each worker based on the nature of the work.
How do we get started?
Register here to set up your account, or contact us and we'll map your freelancers to the compliant route. Already have an account? Log in.
The clean way to pay freelancers in Israel
A freelance payroll solution lets your company pay any number of freelancers without running payroll, opening a business per worker, or risking misclassification. Through NETO, each freelancer is either employed with a real Israeli payslip and statutory rights, or paid against a compliant invoice without registering a business · while your company receives a single consolidated invoice each month. NETO handles tax, National Insurance and reporting as the employer of record, under licensed manpower contractor #1565 and Ministry of Labor supervision. The model fits one-off payments and ongoing relationships alike, and · through an Employer of Record · lets foreign companies pay Israel-based freelancers with no local entity. Start with NETO to pay freelancers cleanly, or talk to us and we will map each worker to the compliant route.
Related reading
More guides on paying freelancers & payroll
Employer of Record in Israel
How foreign companies employ and pay workers in Israel with no local entity.
Read moreIsrael payroll explained
What goes into a compliant Israeli payslip · deductions, rights and reporting.
Read moreOfficial sources
Ready to pay freelancers the clean way?
Tell us who you pay and we'll set up the compliant route · payslip, invoice or EOR · and hand you one simple invoice each month.
Sales +972-72-395-7588 · Service 08-9761874 · WhatsApp wa.me/97286228945
