Hire and pay Israeli workers without opening a company in Israel
You choose the worker and approve the cost. NETO employs them locally, runs payroll and reporting, and sends you one invoice. No local entity, no lawyers, no government offices.
AI summary · Hiring and paying workers in IsraelClick to read the page summary
NETO provides a complete, fully compliant Employer of Record (EOR) solution that lets you hire and pay workers in Israel without opening a local company. You choose the worker, approve the cost and pay a single invoice. NETO employs the worker locally, runs payroll and tax reporting, and handles social benefits, pensions and compliance with Israeli income tax, National Insurance and labor law. The worker receives a real payslip with the rights and documentation they are entitled to, and you get one clear cost line instead of a local accounting operation. NETO is a licensed manpower contractor (license no. 1565) and has been operating since 2016 · the commission is 5%, derived from the invoice the client pays, before VAT.
- No local entity · hire in Israel without registering a company or opening tax files.
- Full legal compliance · income tax, National Insurance, labor law and reporting.
- Simple payment flow · one invoice from NETO · no local accounting, no surprises.
- Fast and flexible · fits pilots, projects, remote teams and ongoing employment.
- Payment protection · the worker gets a real paycheck with full rights and documentation.
- General information · this page is not legal, tax or accounting advice.
In brief
Want to hire an Israeli worker, or pay a contractor, without worrying about compliance, a payroll system or tax presence in Israel? Looking to hire and manage an independent professional to perform services? NETO provides a complete, fully compliant Employer of Record (EOR) solution that lets you operate legally and efficiently.
- You choose the worker · we take care of everything that makes the employment lawful.
- You approve the cost · nothing moves before the terms are agreed.
- You pay with one invoice · wage, employer costs and fee, itemized in one line item set.
- NETO is the legal employer · payroll, tax reporting, pension, benefits and compliance.
Who does what · you and NETO
The split is deliberately simple. You keep the professional relationship with the worker. NETO carries the formal employer responsibility in Israel · the part that requires a local entity, a payroll system and a licence.
With NETO, you:
- Choose the worker · the person you want, on the terms you want
- Approve the cost · full visibility before you commit
- Pay with one invoice · a single supplier, a single payment
NETO:
- Employs the worker locally as the registered employer in Israel
- Runs payroll and tax reporting · withholding, filings and payslips
- Handles all social benefits, pensions and compliance under Israeli law
What you actually get from working this way
Full legal compliance
NETO complies with Israeli income tax, National Insurance, labor law and reporting requirements · as a licensed manpower contractor under supervision.
Simple payment flow
One invoice from NETO. No local accounting, no separate payroll run, no surprises at the end of the month.
Fast and flexible hiring
Ideal for pilots, projects, remote teams and ongoing employment · scale up or down without restructuring anything.
Full payment protection
Workers receive a real paycheck with the rights and documentation they deserve · payslip, pension contributions and social benefits.
Five steps from a chosen worker to a paid payslip
The worker registers
The worker you selected registers with NETO and submits the details needed for lawful employment in Israel.
Terms are approved
Role, scope, rate and start date are agreed and approved · nothing moves before both sides confirm.
NETO issues an invoice
One itemized invoice covering the wage, the statutory employer costs and the management fee.
You pay NETO
A single payment to a single supplier · no local bank account and no local bookkeeping on your side.
NETO pays the worker
The worker is paid as salary, receives a payslip, and taxes, reporting, pension and benefits are handled along the way.
Ready to hire your first worker in Israel?
Open an employer account and tell us who you want to hire. We will come back with the full cost, itemized, before anything is signed.
Hiring through NETO vs opening a local entity
Both routes are legal. They differ in how much time, structure and ongoing overhead you have to carry yourself before the first payslip is issued.
| What it involves | Hiring through NETO (EOR) | Opening your own entity in Israel |
|---|---|---|
| Company registration in Israel | Not required | Required · Companies Registrar, tax files, ongoing filings |
| Payroll system and payroll officer | Included · NETO runs it | You set it up and maintain it |
| Employer legal responsibility | NETO is the registered employer | Your local entity carries it in full |
| Invoices you handle | One itemized invoice | Payroll, accountant, advisers and authorities separately |
| Supervision and licensing | Manpower Contractor License 1565 · Ministry of Labor | Your own compliance function |
| Suits a small or temporary team | Yes · pilots, projects and remote roles | Usually justified only at larger, permanent scale |
If you are weighing the two routes in depth, read Employer of Record Israel and the real cost of employing in Israel.
Who this is built for
Companies abroad hiring in Israel
You found the person you want in Israel but have no entity there. NETO becomes the local employer so you can start without a corporate project. See EOR for foreign companies.
Project and pilot teams
Short engagements, seasonal peaks and pilots where opening a structure would cost more than the project itself.
Remote and distributed teams
Remote roles managed from abroad, employed lawfully in Israel with a payslip and full rights. See hiring Israeli developers.
What it costs and what is included
The pricing model is deliberately flat and readable: a 5% commission, derived from the invoice the client pays, before VAT. On top of that you pay the wage itself and the statutory employer costs required by Israeli law · pension contributions, National Insurance and the other mandatory components.
Everything appears on one itemized invoice, so the total cost of the worker is visible before you approve it and again every period. There is no separate charge for running payroll, for producing payslips or for the compliance work behind them · that is what the commission covers. For foreign employers, tailored pricing is available on request.
For a full breakdown of what employing someone in Israel actually costs, including the statutory components, see employer cost in Israel and Israel payroll.
Included in the service
- Employment contract compliant with Israeli law
- Monthly payroll processing and payslip
- Tax withholding and reporting to the authorities
- Pension contributions and social benefits
- One itemized invoice per period
- Support in English · Sunday to Thursday, 9:00 to 16:00
Frequently asked questions from employers
Do I need to open a company in Israel to hire a worker there?
No. Under the Employer of Record model NETO is the legal employer of the worker in Israel, so you can hire and pay lawfully without registering a local entity, opening tax files or running a local payroll.
Who manages the worker day to day?
You do. Your company sets the tasks, the goals and the professional management. NETO handles the formal employer side: contract, payroll, withholding, reporting, pension and social benefits.
How much does it cost?
NETO charges a 5% commission, derived from the invoice the client pays, before VAT. On top of that you pay the wage itself and the statutory employer costs, all itemized on one invoice. For foreign employers, tailored pricing is available on request.
Is NETO licensed to employ workers on behalf of another company?
Yes. NETO operates under Manpower Contractor License no. 1565 issued by the Ministry of Labor, and has been operating since 2016. The licence can be verified in the public contractors database on gov.il under company number 515486058.
How many invoices do I receive?
One. NETO issues a single itemized invoice per period covering the wage, the employer costs and the management fee, so there is no local accounting work on your side.
Does the worker receive full employee rights?
Yes. The worker is employed as a salaried employee from day one and receives a real payslip together with the rights and documentation required under Israeli law, including pension contributions and social benefits. See employee rights in Israel.
How fast can we start?
Once the worker is registered and the terms are approved, employment can start quickly · there are no lawyers, no government offices and no entity registration in the path.
How do I reach NETO support?
Phone support is available Sunday to Thursday, 9:00 to 16:00, at +972-8-976-1874. You can also message us on WhatsApp or use the contact form.
In summary
Hiring in Israel does not have to start with a company registration. With NETO as the licensed registered employer you choose the worker, approve the cost and pay one invoice · while NETO employs the worker locally, runs payroll and tax reporting, and handles social benefits, pensions and compliance. The worker gets a real paycheck with full rights, you get a single clear cost line, and the whole thing runs under Ministry of Labor supervision with Manpower Contractor License 1565.
More content you may find useful
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Tell us who you want to hire in Israel and on what terms. You will get the full itemized cost before anything is signed · lawful employment under Ministry of Labor supervision, with Manpower Contractor License 1565.
