Employer of Record · Israel
Hire in Israel. Without opening a local company.
NETO becomes the legal employer of your people in Israel. We sign the employment contract, run payroll, withhold taxes and file with the authorities. You manage the work and receive one itemized invoice.
Already decided? Start employer registration
- License no. 1565 · verify
- Bank guarantees for wages
- Operating since 2016
01Division of responsibility
Three parties. One clear arrangement.
An Employer of Record (EOR) is not a staffing agency and not merely a payroll provider. It is the legal employer for every purpose, including compliance with Israeli labor law. You keep full professional control of the work.
Your company
Directs the work
Sets tasks and goals, manages performance, and pays one itemized monthly invoice. No legal structure to set up or dismantle.
NETO
Legal employer in Israel
Signs the contract, pays wages, withholds taxes, contributes to pension and funds, files with the authorities and handles the end of employment.
Your employee
Salaried from day one
A law-compliant contract, a proper payslip, pension and social rights exactly as in direct employment. Works with your team from Israel.
| Area | Your companyDirects the work | NETOLegal employer in Israel | Your employeeSalaried from day one |
|---|---|---|---|
| Day-to-day work | Sets tasks and goals, and manages performance | Legal employer only. No part in daily management | Works with your team, from home or another location in Israel |
| Employment contract | Provides role, scope, salary and start date | Prepares a contract compliant with Israeli law and signs it as the employer | Signs digitally |
| Payroll | Pays one itemized monthly invoice | Calculates gross and net pay, pays wages and issues the payslip | Receives a proper payslip, fully itemized |
| Taxes and filings | Reports changes in salary, bonus or scope to NETO | Withholds income tax, National Insurance and health contributions. Submits the periodic filings, including Forms 102 and 126 | Entitled to national health insurance as a salaried employee |
| Pension and social rights | Sees employer costs itemized on the invoice | Contributes to pension and funds. Manages annual leave, sick days, recuperation pay and travel allowance | Full social rights, exactly as in direct employment |
| End of employment | No legal structure to dismantle | Manages the notice period, a hearing where required, final settlement, severance calculation and Form 161 | Receives final settlement, release of funds and termination documents |
02Verification
Licensed. Supervised. Open to checking.
In Israel the law requires a special license to broker and employ workers. NETO operates under a registered license issued by the Ministry of Labor, and the registry is public.
Opens the government registry on gov.il. The registry is published in Hebrew.
View our license page- License
- No. 1565
Manpower contractor license, issued by the Israeli Ministry of Labor - License valid to
- 28.02.2029
- Legal entity
- Bareket I.T. Ltd.
Trading as NETO · Reg. 515486058 - Operating since
- 2016
- Wage protection
- The regulator requires NETO to deposit bank guarantees against employee wages
- Supervision
- Ongoing conformity checks by the Ministry of Labor
03Cost and transparency
One invoice. Every line visible.
One monthly invoice that includes wages, employer costs and management fees. No surprises and no hidden charges. Everything is presented up front.
Gross salary
The salary agreed with the employee, including additional components, if any
Employer costs
Pension, severance and recuperation pay, plus the employer's share of National Insurance
NETO service fee
5% of the invoice amount before VAT. No other fees.
Example for one employee at a gross monthly salary of ILS 20,000, using 2026 statutory rates: employer National Insurance, pension 6.5%, severance 8.33% (Section 14) and 10 days of recuperation pay. Excludes travel allowance and study fund. All amounts before VAT.
Not on your invoice
- No company-setup cost
- No fixed retainer for lawyers and accountants
- No payroll systems or in-house HR team
What moves the price
- Type of employment and level of complexity (bonuses, options, reimbursements)
- Number of employees and how many changes occur during the month
- Document requirements and special onboarding processes
- International payments and foreign currency, if relevant
Simulator
What does an employee really cost you?
NETO's simulator for 2026: choose gross, net to the employee or total cost, and see the employer side and the employee side at once. The same calculation engine that powers the employer-cost guide on this site.
Employer and employee simulator · 2026
Choose where to start: gross salary, net to the employee or total cost. See at once what it costs the employer, and what the employee keeps in hand and in pension.
Recuperation days depend on seniority. The 2026 minimum wage is ILS 6,443.85 per month.
Employer side
Employee side
04Onboarding
Four steps. Usually a few days.
In most cases an employee can be onboarded within a few days. When the documents are ready and the terms are clear, sometimes within 24 to 48 hours.
Share the details
You send the employee's details and the employment terms: role, scope, salary and start date.
Contract and signature
NETO prepares an employment contract compliant with Israeli law and sends it for the employee's digital signature.
Registration in the systems
The employee is registered in the payroll systems and with National Insurance. Filings to the authorities are submitted automatically.
Ongoing management
Every month: payroll calculation, tax and contribution withholding, and payslip issuance. You receive a single itemized invoice.
What to prepare in advance
- Employee details and role or scope of the position
- Proposed salary and components, if any
- Estimated start date
- A contact on your side for professional management
05Scope
Where this fits, and where it does not
Especially suitable if
- You are hiring 1 to 10 employees in Israel
- You want to start fast without opening a company
- Lawful employment and regulatory peace of mind matter to you
- You do not have a local HR team
Less suitable if
- You have full local commercial activity, such as sales in Israel and invoices to Israeli customers
- You expect dozens of employees over time
- You need a unique and highly complex legal and tax structure
In those cases it may be better to set up a local entity. The EOR is suited to employment, not to full business activity.
Ready to hire in Israel?
It starts with a short conversation: how many employees, where, what the employment terms are, and how to move forward in Israel with confidence.
Already decided? Start employer registration
Two-minute check
Do you need an Employer of Record in Israel?
Four questions. The result is an orientation, not advice.
Question 1 of 4
Does your company already have a legal entity in Israel?
How many people do you plan to employ in Israel?
What kind of activity will they do?
How soon do you want them to start?
EOR fits you well
No local entity, a small team and work for your company abroad: this is exactly what the Employer of Record model is for. Onboarding usually takes a few days.
Get an itemized hiring quoteEOR is probably the right start
Starting with an EOR lets you employ lawfully now and decide later whether a local entity is worth it. Tell us about the role and we will show you the numbers.
Get an itemized hiring quoteA local entity may fit you better
Full local commercial activity or dozens of employees usually call for a company in Israel. We are happy to help you think it through.
Ask on WhatsApp06Hiring quote
Get an itemized hiring quote
Tell us about your hire and we reply by email with a line-by-line breakdown: gross salary, employer costs, the NETO service fee and the monthly total. No commitment and no account to open.
- Based on 2026 statutory rates
- Short form, under a minute
- Your details are used for this request only
Thank you. We have your request.
We will reply to with an itemized breakdown.
Prefer to register now? Start employer registration07Further reading
Read the full guide
The complete reference on Employer of Record in Israel: the legal model, the license, rights, termination and cost.
Read the full guideWhat the EOR model is and how it works
NETO becomes the legal employer of your people in Israel: it signs the contract, runs payroll, withholds taxes and files with the authorities. You direct the work and pay one itemized invoice.
Open the full guide Opens in a new tabWhy you must work with a license holder
Israeli law requires a special license to broker and employ workers. NETO operates under Manpower Contractor License no. 1565, supervised by the Ministry of Labor, with bank guarantees for employee wages. The registry is public.
Open the full guide Opens in a new tabWhich legal risks an EOR reduces
Misclassification, retroactive claims and non-compliant contracts are the usual exposure of hiring abroad. With an EOR the person is a salaried employee from day one, under a contract that complies with Israeli law.
Open the full guide Opens in a new tabThe difference between EOR and payroll only
A payroll provider only calculates and pays; the legal employer is still you. An EOR is the legal employer for every purpose, including compliance with labor law, termination and filings.
Open the full guide Opens in a new tabMandatory rights, pay and termination
Pension and severance contributions, recuperation pay, annual leave and sick days, notice periods and a hearing where required, final settlement and Form 161: the full set of statutory rights, exactly as in direct employment.
Open the full guide Opens in a new tabQuestions and answers
Onboarding time, what the invoice includes, who can be employed, how termination works, what happens with bonuses and options, and more.
Open the full guide Opens in a new tabNETO · Bareket I.T. Ltd. · Reg. 515486058 · Licensed manpower contractor #1565 (valid to 28.02.2029)
General information, not advice: the information on this page is for enrichment only and is not legal, accounting or tax advice. Consult a lawyer, accountant or tax adviser as needed.
