Side income for employees in IsraelGet paid legally for a side project or private client · NETO issues the invoice and pays you as net salary, so you keep your job and never open a business file too early
You have a salaried job and a small side project · consulting, teaching, creative or occasional work. A client needs an invoice, you do not want to work off the books, and opening a business file feels premature. NETO gives you the middle path: it issues the invoice to your client, handles tax and National Insurance, and pays you your net amount with a proper payslip.
AI summary · Side income for employees in IsraelClick to read the page summary
Side income for employees in Israel can be handled legally without opening a business. When a private client needs an invoice, NETO issues the invoice to the client and pays you the money as net salary with a payslip. Income tax, National Insurance and health deductions are processed through payroll, and tax coordination can be applied so a second income source is not taxed at the wrong marginal rate. It is the practical route to test a side project before deciding whether to open your own business file. NETO operates under manpower contractor license 1565 (Bareket I.T Ltd, company id 515486058), with a single fee taken from the client invoice.
Getting paid for a side project · without opening a business file
Side income for employees in Israel is relevant when you have a small project, a private client or occasional consulting work, but opening a business file still feels premature. The client needs an invoice, you do not want to work off the books, and an exempt dealer file may be too much for something you are still testing.
For example, you earn NIS 18,000 gross as an employee, and two evenings a month you advise private clients for another NIS 4,000. If that side income is not coordinated correctly, it can be taxed at the wrong marginal rate and leave you with much less than expected. NETO gives you a licensed middle path: it issues the invoice to the client and pays you the money as salary, with the paperwork handled in a structured way.
Why get paid through NETO
Everything a business file would let you do · without opening one. NETO turns a one-off client payment into a clean, documented payslip.
Get paid legally
Your client receives a proper invoice and you receive the money through an organised payroll path · fully reported, never off the books.
Avoid tax surprises
Plan tax coordination before the first payment lands, so a second income source is not taxed at the wrong marginal rate.
Keep your employee status
A practical route for an early-stage side project · you stay a salaried employee and simply add a documented, coordinated income.
Reduce paperwork
Invoice, payslip and deductions are handled in one flow. No tax files to open, no bookkeeping and no local accountant to pay for.
Fast for a single payment
No business to set up means you can invoice a client quickly · ideal when the work is occasional or you are still testing the idea.
Licensed and secure
The payment runs through a licensed platform (), so the income is handled correctly and documented in full.
Three ways to handle side income · and which fits you
Open a business file
Registering an exempt or authorised dealer file suits activity that is stable, recurring and profitable enough to justify bookkeeping and direct reporting. It gives you full independence · but it is real overhead for something you are still testing.
Get paid through NETO
NETO invoices the client and pays you as net salary with a payslip. Tax, National Insurance and health deductions are handled in one flow, so you get paid legally without a business file · the practical route for a side project or occasional work.
- Invoice to the client, payslip to you
- One clear fee, taken from the client invoice
- Deductions handled and coordinated
From a client payment to your payslip · in five steps
A simple, repeatable path. You do the work and keep the relationship with your client · NETO handles everything that makes the payment legal and documented.
- Agree the work and the fee with your client. Settle what the work is and what it is worth. Check your employment contract first for any exclusivity or approval clause with your main employer.
- NETO issues the invoice to your client. NETO produces a proper invoice according to the work and the amount, so the client gets the document they need · and you never open a business file.
- NETO handles tax and National Insurance. Income tax, National Insurance and health deductions are processed through payroll, and tax coordination can be applied so the deductions match your real annual income.
- You receive net salary with a payslip. The net amount reaches your bank account together with a proper payslip, so the side income is fully documented and legitimate.
- Decide later whether to open a business file. When the activity becomes stable, recurring and large enough to justify bookkeeping, you can move on · until then NETO keeps the paperwork simple.
Open a business file vs getting paid through NETO
The same goal · getting paid legally for your side work · reached two very different ways.
| What to weigh | Opening your own business file | Getting paid through NETO |
|---|---|---|
| Best suited for | Stable activity with repeated clients | Testing a side project or occasional work |
| Paperwork | Tax files, bookkeeping and reports | Invoice and payslip in one flow |
| Speed to first payment | Requires setup first | Suitable for a quick client payment |
| Your status | You become self-employed as well | You stay a salaried employee |
| Main risk | Opening too early for a small activity | Check your employment-contract clauses first |
Want to understand exactly what remains after deductions? See the guides on tax on additional income and alternatives to opening a business.
A licensed platform · not an off-the-books shortcut
Licensed and supervised
NETO operates lawfully through Bareket I.T Ltd (company id 515486058) under manpower contractor license 1565, supervised by the Ministry of Labor, with guarantees deposited against workers' wages. Your side income is handled inside a real, regulated structure.
- License 1565 · verifiable in the state database
- Bank guarantees securing the pay
- Operating since 2016 as an employment platform
Automated and transparent
NETO is a digital employment platform, so invoices, payslips, deductions and payments run through one automated system. The process is fast, available and fully visible, and the payment route is set up correctly from the start.
- One clear fee · taken from the client invoice
- Net calculation before you commit
- Full payslip and documentation for your records
You can verify NETO's license directly in the Ministry of Labor's manpower contractor database · a public register of every licensed manpower company in Israel.
Before your first side project is paid
A little preparation prevents tax surprises and keeps the work fully legitimate. Check your employment contract for exclusivity or approval clauses, estimate the gross amount, and ask whether the client needs an invoice.
Then calculate the expected net · what actually remains after tax, National Insurance and the platform fee. That single step tells you whether the project is worth taking on, and NETO can help you run the numbers before any payment is made.
Side income for employees · questions and answers
Can I invoice a client without opening a business?
Does my main employer need to know?
Will tax and National Insurance be deducted automatically?
How is NETO's fee charged?
Do I still receive a proper payslip?
When should I open my own business file instead?
Can NETO help before I commit?
Want a cleaner way to get paid?
Register for free and NETO invoices your client, handles tax and National Insurance, and pays you your net amount with a proper payslip · no business file to open, and one clear fee taken from the client invoice. Operating since 2016 under manpower contractor license 1565.
In summary
You can earn side income as an employee in Israel without ever opening a business file. NETO issues the invoice to your client, processes income tax, National Insurance and health deductions, applies tax coordination where it helps, and pays you your net amount with a proper payslip. It is the practical, lawful way to test a side project while you keep your salaried job · one clear fee taken from the client invoice, and no bookkeeping to run. NETO has operated since 2016 under manpower contractor license 1565 (Bareket I.T Ltd, company id 515486058).
- No business file · NETO invoices the client on your behalf.
- Get paid legally · the money reaches you as documented net salary.
- Deductions handled · income tax, National Insurance and health.
- Tax coordination · so a second income is not taxed at the wrong rate.
- Keep your status · you stay a salaried employee throughout.
- One clear fee · taken from the client invoice, with a full payslip.
Related guides for employees
Tax coordination for employees
Understand the tax side before a second income source is paid.
Read moreInvoice vs payslip in Israel
Compare the payment routes and how each one is handled.
Read more
Private invoice without a business
What is possible when a client needs an invoice · and what to avoid.
Read moreTax on additional income
Tax coordination, National Insurance and what your net pay comes to.
Read moreReporting occasional work
The documentation and reporting basics for one-off projects.
Read moreAlternatives to opening a business
The lawful routes to consider before opening your own tax file.
Read moreInvoice service legality
What to check before you get paid through a payment platform.
Read more
