
Pay by invoice vs payroll
When invoice payment works in Israel - and when payroll is required.
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Issue legal invoices to your clients and receive a payslip with full social rights - pension, national insurance and more - without opening a business. The freedom of a freelancer with the security of an employee.
NETO lets you work like a freelancer and get the rights of an employee: you do the work, NETO issues the invoice to your client, and you receive a proper payslip with pension, national insurance and social terms - no self-employment file, no accountant.
No self-employment file, no bureaucracy, no hidden costs.
Pension, national insurance, convalescence and benefits - like an employee.
A monthly payslip and reporting to the authorities - all by the book.
Invoices in NIS, USD and EUR · each client billed separately.
Before getting tangled in the bureaucracy of opening a self-employment file with the tax authority, it's worth looking at NETO. You focus on the work; we handle everything else - the experience, the licenses and legal approvals, and the paperwork.

Fill in an employee card (form 101) and your bank account details.
Enter the client details and amount · the payment request is sent to your client.
When the client pays, the money is deposited to your account with a payslip.
| Topic | Open a business | Work as an employee | NETO freelancer |
|---|---|---|---|
| Open a tax file | Required | Not relevant | Not required |
| Issue invoices to your own clients | Yes | No | Yes |
| Choose your own clients & projects | Yes | No · one employer | Yes · many clients |
| Accountant & annual reports | Required | Not needed | Not required |
| Payslip | None | Yes | Yes |
| Social rights (pension, national insurance) | Self-funded | Full | Full |
| Tax coordination | Your responsibility | Per employer | Free, automatic |
| Cost / fees | Accountant + fees | None | 5% commission only |
NETO for freelancers is the way to invoice like a freelancer and still get the rights of an employee. You issue legal invoices to your clients · in Israel and abroad · without opening a self-employment file, without an accountant and without annual reports. NETO handles the registration, tax coordination and reporting, and you receive a proper payslip with pension, national insurance, convalescence and full social terms, subject to National Insurance rules. The model fits a one-time invoice or ongoing work, with a low 5% commission and no setup fee or subscription. Everything runs under licensed manpower contractor #1565, under Ministry of Labor supervision. Start with NETO and issue your first invoice in minutes, or talk to us and we'll walk you through every detail.
Sign up free in minutes, issue an invoice and get a payslip - with all the rights of an employee.

When invoice payment works in Israel - and when payroll is required.
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