Freelancer Rights in Israel · Sick Days, Pension & Severance

Freelancer rights are different from the rights of a salaried employee. A self-employed freelancer sells a service to a client · not working time like an employee. They are generally responsible for reporting and paying their own income tax and National Insurance, and for arranging their own pension. Every decision therefore begins with a basic question: what is the true nature of the engagement. A small mistake in the payment route or in classification can turn into an expensive bureaucratic project.

The main risk is choosing a route that does not fit the substance of the work · for example, calling someone a freelancer when in practice an employer-employee relationship exists, or receiving income without proper documentation and reporting to the authorities. The earlier things are documented, the easier it is to avoid mistakes. See also how status is decided in self-employed vs salaried under National Insurance.

Sick days for a freelancer are not automatically the same as sick days for an employee. A self-employed freelancer sells a service, so when they are ill and cannot work, there is usually no income and no party that pays sick pay. Entitlement depends on the agreement between the parties and on the real classification of the relationship · not just on the title written in a document.

A salaried employee, by contrast, is entitled to sick pay by law: they accrue one and a half sick days for every month of work (about 18 days a year), up to an accumulation of 90 days, alongside National Insurance, pension and severance. Through NETO a freelancer can reach exactly this position · you issue an invoice like a freelancer and at the same time are a salaried employee of NETO, with a payslip and full social rights, without opening a business file.

When you work through NETO you are a salaried employee in every respect. You issue an invoice to the client for the work, NETO receives the payment and pays you a salary with a lawful payslip. In this way a freelancer who would not have been entitled to sick days as a self-employed person accrues them like any salaried employee in Israel · alongside the full set of social rights.

The mechanics are simple. You issue an invoice to the client through NETO's system for the work performed; the client approves and pays NETO; and NETO pays you a salary with a payslip, handling all the deductions and contributions. You get net to your bank account · and the social rights accrue automatically.

Freelancer rights in Israel are fundamentally different from an employee's. A self-employed freelancer sells a service and is responsible for their own tax, National Insurance and pension · which means no automatic sick days, no employer pension contribution, no severance and no paid vacation or recuperation. A salaried employee accrues up to about 18 sick days a year, 16 vacation days, recuperation, pension and severance.

For a freelancer who wants the flexibility of self-employment together with the protection of an employee, working through NETO in a manpower model under licence #1565 delivers exactly that: you invoice the client, receive a payslip with full social rights, and skip the business file entirely · with a ~5% fee that derives from the client's pre-VAT invoice.