NETO FAQ Employment, payroll & EOR in Israel
Straight answers for employers, employees, freelancers and foreign companies - hiring, payroll, benefits, dismissal, invoicing and costs. Kept up to date from our support conversations.
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Licensed #1565Ministry of Labor
In short
NETO is a digital, fully compliant employment platform that handles hiring, payroll, social benefits, dismissal, freelancer invoicing and full Employer of Record (EOR) in Israel · under licensed staffing contractor #1565. This FAQ answers the most common questions from each audience, grouped below.
- Employers · hire & pay compliantly, only 5% on the payslip, no recruitment fees.
- Employees · official payslip, full social rights and smart job matching.
- Freelancers · invoice Israeli & foreign clients without a business, 5% flat.
- Foreign companies · full EOR in Israel with no local entity.
How can we help?
NETO brings the whole world of employment into one compliant, digital platform - for employers, employees, freelancers and foreign companies (EOR), under licensed staffing contractor #1565. Can't find your answer? Gai, our AI assistant, is here 24/7, plus WhatsApp and phone.
General
What is the NETO system?
NETO is an automated employment platform that gathers everything related to employment in one place - recruitment, payroll, employer-employee relations and freelancer invoicing. It operates under licensed staffing contractor #1565 and ensures full compliance with Israeli labor law.
Is NETO a staffing company or a recruitment agency?
Both. NETO is a licensed staffing company and a placement agency - accompanying you from the initial job search all the way to payment, legally compliant from day one.
How is NETO different from a traditional staffing agency?
NETO is a licensed contractor (#1565) with a digital-first, automated model - no high recruitment fees. Employers pay only the legally required costs plus a low platform fee.
Is NETO suitable for new immigrants (Olim)?
Yes - especially. You can work legally from day one with no bureaucratic barriers, and NETO handles all the employment paperwork.
Does NETO offer support in languages other than Hebrew?
Yes. NETO provides customer support in English and Russian (as well as Hebrew). If you are still learning Hebrew, our team can assist you in English - from registration, through payroll questions, to any employment issue that comes up.
What is the "Salary Expectations" category?
NETO lets you choose your desired salary level. Keep in mind that your salary expectations also factor into how the matching system pairs you with employers, so setting them realistically helps you receive more relevant offers.
For employers
How much does it cost to hire through NETO?
Only 5% commission on the payslip, with no extra recruitment fees. For foreign employers (EOR), customized pricing is available on request. See employer cost.
What is an Authorized User?
A feature for managers overseeing multiple branches: delegate hiring authority to branch managers and set a maximum budget per branch, while keeping full oversight.
How does employer rating work?
At the end of each engagement, the employer rates the employee on reliability, quality and punctuality. This mutual rating keeps standards high across the platform.
Is a termination hearing required before dismissal?
Yes - including for temporary workers, under Israeli court practice. The employer invites the employee, presents the reasons, allows a response and issues a written reply. When NETO is the employer of record, NETO runs the whole process.
Who is responsible for the dismissal process?
When NETO acts as the employer of record, NETO takes full responsibility for the entire dismissal process, including the hearing - ensuring compliance and protecting both sides.
How long can I employ a worker through NETO?
Under Israeli law, a worker employed via a staffing contractor for 9 consecutive months at the same workplace becomes entitled to equal terms. NETO manages this transition automatically. For long-term placements, NETO also offers a direct placement track, where the worker becomes your direct employee.
For employees
Will I receive all my social benefits?
Absolutely. NETO pre-calculates vacation, sick days and holidays by law and pays per your working percentage; pension and severance are allocated to your pension fund. NETO can employ a worker for up to 9 months, after which they may become a direct employee of the client.
How often are new jobs updated?
In real time, as employers post listings. If you are not getting enough offers, the system tells you why (e.g. expand availability or adjust salary expectations) to help you find the right job faster.
Can I contact an employer before signing?
Yes. Once you are approved for a position, both sides chat directly through the built-in NETO chat - before any contract is finalized.
How does the employee rating system work?
NETO scores each employee on availability, location and salary expectations, then matches you to the best opportunities. A higher score means more offers from top employers.
What types of jobs are available?
All types - part-time, temporary and long-term roles across many industries, from short assignments to ongoing employment.
Can I improve or reset my rating?
Yes - once every six months you can reset your rating score and start fresh to rebuild your professional profile.
How can I improve my employee rating?
Show up on time, communicate professionally with employers, complete assignments as agreed, and ask employers for positive feedback. NETO's system rewards consistent, reliable workers with higher visibility and more job offers.
Can I work from my first day as a new immigrant (Oleh Hadash)?
Yes. NETO is built to serve new immigrants who want to start working in Israel right away. From the day you arrive you can register and work legally, and NETO handles all the employment formalities. You also receive official payslips and full social rights (pension, National Insurance, annual leave and sick days), which helps you build your social and credit history in Israel.
For freelancers
Can a freelancer issue invoices through NETO?
Yes. Freelancers issue Israeli and international invoices for just 5% commission, without opening a self-employment file, and still receive a compliant payslip. See pay by invoice and one-time invoice.
Do freelancers get social rights too?
Yes. Because you are paid via a payslip, you receive social rights like an employee - pension, annual leave, sick days, recuperation pay and National Insurance coverage - while working flexibly like a freelancer.
Can I invoice foreign (international) clients through NETO?
Yes. NETO supports international invoicing in USD, EUR and other currencies. Whether you work for a US startup, a European company or remote clients worldwide, NETO can issue compliant Israeli invoices on your behalf, and currency exchange is handled transparently.
What is NETO's fee structure for freelancers?
A flat 5% commission on the invoice amount - no monthly subscription, no hidden fees and no opening fees. Out of that 5%, NETO covers all payroll processing, payslip generation, compliance and support. The remaining 95% (minus statutory taxes) is deposited to your account.
Can I keep working with foreign clients after making aliyah?
Yes. If you have freelance clients abroad and you have made aliyah, NETO can handle your international invoicing legally. You work remotely, NETO issues the invoices and handles the taxes, and you receive a proper Israeli payslip - the simplest way to continue your career while starting your new life in Israel.
Foreign companies (EOR)
What is Employer of Record (EOR) in Israel?
An Employer of Record (EOR) is a licensed entity that formally employs workers on behalf of a foreign company. NETO acts as the EOR in Israel - we hire your Israeli employees or contractors and handle all local compliance, payroll, taxes and social benefits, while you keep full operational control.
Can I hire Israeli workers without setting up an Israeli entity?
Yes. Through NETO's EOR service you can legally hire and pay Israeli workers without registering an Israeli company. NETO handles everything: employment contracts under Israeli law, payroll, tax deductions, National Insurance (Bituach Leumi), pension and all HR compliance. You simply pay NETO and we manage the rest.
What does NETO's EOR service include?
NETO EOR includes employment contracts compliant with Israeli labor law, monthly payroll in ILS or USD, payslip generation, income tax withholding, National Insurance contributions, pension fund management, annual leave and sick day tracking, termination procedures, and full HR support in English.
Is NETO suitable for hi-tech companies and startups?
Yes. NETO works with international hi-tech companies and startups employing Israeli talent remotely, providing a digital-first experience with English-language support, digital contracts and transparent reporting. Whether you need to hire one person or a full team in Israel, the service scales with you.
How do I get started with NETO EOR?
It is simple: (1) contact us, (2) tell us about your hiring needs (number of employees, role, salary), (3) receive a customized proposal, and (4) sign a service agreement and begin onboarding. The whole process takes just a few days.
NETO vs the alternatives
| What matters | Open a business | Traditional agency | NETO |
|---|---|---|---|
| Bureaucracy / registration | Required | Partial | None |
| Payslip & social rights | None | Yes | Full |
| Issue invoices to clients | Yes | Usually no | Yes |
| Fast digital process | No | Partial | Full |
| Cost | Accountant + filings | High fees | 5% |
Video guides
NETO in action
For employers · post & hire
For freelancers · invoice in minutes
Paying casual workers
Watch · in under 2 minutes, see how simple it is to hire, pay a worker, or issue an invoice through NETO.
In summary
NETO brings the entire world of employment into one compliant, digital platform - recruitment, payroll, freelancer invoicing and full EOR for foreign companies - under licensed staffing contractor #1565. Legal, fast and transparent.
- Employees · payslip & full rights, smart matching and offers.
- Freelancers · invoice without a business, 5% commission.
- Employers · hire & pay in one click, no bureaucracy.
- Foreign companies · full EOR with no Israeli entity.
Still have a question? We're here
Gai, our AI assistant, is available 24/7 - plus WhatsApp, phone and a quick free sign-up with a cost simulation.
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