Employer of Record is allowed in Israel with limits. Israel has no EOR statute: a company that employs people and places them to work for another company is a manpower contractor under the Manpower Contractors Law 1996, needs a Labour Ministry licence, and the client may not take staff from an unlicensed one (he.wikisource.org, checked 2026-10-07). That is our reading of the statute; we found no law-firm or ministry statement on EORs.
Employer statutory costs come to about 22% of gross: ILS 33,719 on an ILS 153,000 salary and ILS 67,813 on ILS 305,000 (btl.gov.il, checked 2026-10-07). The EOR fee comes on top: list prices in our table run from $199 to $699 per month.
What sets Israel apart is the nine-month limit. For non-computing roles, a worker placed with the same client for more than nine consecutive months is treated as the client’s employee. Computing roles are exempt from that rule, but not from the licence. We searched the Labour Ministry’s list of licensed manpower contractors for all 15 providers and found none, which does not settle whether the law reaches an EOR.
An Employer of Record fits a computing hire you direct and want to start quickly. For a non-computing role you expect to keep beyond nine months, weigh your own Israeli company; an independent specialist can work as a contractor.
Employing someone in Israel: key facts
Israel sets one national minimum wage, funds employer social security through National Insurance and a mandatory pension, and builds termination costs into a severance deposit. Everything below is statutory unless marked as a market practice.
Minimum wage
One national rate, no regional rates. The monthly rate rose on 2026-04-01 (btl.gov.il, checked 2026-10-07).
National minimum wage, ILS per month for a full-time job, in force on 31 December each year; the 2026 point includes the increase of 2026-04-01. BTL’s 2023 letter says ILS 5,300 applied until March 2023, which conflicts with its 2022 letter; we keep ILS 5,400 from April 2022. Source: btl.gov.il, checked 2026-10-07.
The hourly minimum is 1/186 of the monthly rate under the Minimum Wage Law 1987 s.1: ILS 34.64 an hour. Some publishers quote ILS 35.4 on a 182-hour basis, a figure we did not check against a primary source (he.wikisource.org, checked 2026-10-07).
Employer contributions
The EOR entity pays the items below on gross pay, for a resident employee aged 18 to retirement age. The employer pays no separate health-tax share (btl.gov.il, checked 2026-10-07).
Contribution
Employer rate
Threshold or ceiling (2026)
Notes
Source
National Insurance, reduced bracket
4.51%
Monthly pay up to ILS 7,703
Temporary order from 2025, valid to the end of 2026
Keren hishtalmut (study fund) is not mandatory; we found no rule requiring it (btl.gov.il, checked 2026-10-07).
Since 2026 the reduced bracket is set by statute at ILS 7,522 indexed each 1 January, no longer 60% of the average wage (btl.gov.il, checked 2026-10-07).
Working hours and overtime
Standard week: 42 hours, from an extension order effective 2018-03-19 that replaced 43 (fbclawyers.com, checked 2026-10-07).
Overtime: at least 125% of regular pay for the first 2 overtime hours a day and at least 150% for each further hour; work in weekly rest hours at least 150% (Hours of Work and Rest Law 1951 ss.16-17) (he.wikisource.org, checked 2026-10-07).
The statutory daily limit after the 2018 amendment and the overtime caps were not verified from an official text.
Annual leave and public holidays
Leave (Annual Leave Law 1951 s.3): 16 days for each of the first 5 years, 18 in year 6, 21 in year 7, then one more day a year up to 28. Days are counted on a six-day week; five-day-week employees get a proportional number (he.wikisource.org, checked 2026-10-07). A payroll guide puts year 1 at about 12 working days on a five-day week (protocol.co.il, checked 2026-10-07).
Holidays: nine public holidays: Rosh Hashanah (2 days), Yom Kippur, Sukkot (2), Passover (2), Shavuot and Independence Day. Monthly-salaried employees are paid for them; work on a holiday is paid at 150% plus a substitute day off (herzoglaw.co.il, checked 2026-10-07).
Notice and severance
Monthly-paid employees get the notice periods below, and the same periods apply to resignation. The employer may pay in lieu. Hourly and daily-paid staff have different periods (he.wikisource.org, checked 2026-10-07).
Length of service
Notice
Months 1-6
1 day per month worked
Months 7-12
6 days plus 2.5 days per month worked in that period
After the first year
1 month
Severance: after one continuous year, one month of last pay per year of service (Severance Pay Law 1963 ss.1, 12) (he.wikisource.org, checked 2026-10-07).
Employer deposits into a pension or provident fund replace severance only where a collective agreement or ministerial approval says so (s.14). A 6% deposit covers about 72% of the entitlement and 8.33% covers it fully (gov.il, checked 2026-10-07).
Statutory notice and severance accrual run from the first day of work; we found no statutory probation rule.
13th salary and bonuses
Not mandatory. A 13th month appears only by contract or collective agreement, according to the Chambers Employment 2025 Israel chapter and law-firm guides, which we read in summary form (chambers.com, checked 2026-10-07).
Mandatory benefits
Pension: employer 6.5% plus the severance component, employee 6% (see contributions above).
Convalescence pay: ILS 451.50 a day in 2026, 5 days in year 1.
Sick pay: 1.5 days per full month worked, accumulating up to 90 days (Sick Pay Law 1976 s.4) (he.wikisource.org, checked 2026-10-07).
National Insurance covers work injury and unemployment.
Private health insurance is not employer-mandated; health tax is deducted from the employee through National Insurance. Travel-expense reimbursement exists, but its 2026 rate was not checked.
Work permits
Foreign nationals need an employer-specific work permit and a B/1 visa. Israeli citizens and those under the Law of Return do not need a permit (lawoffice.org.il, checked 2026-10-07).
The expert route requires monthly pay of at least twice the average wage: about ILS 27,538 at the January 2026 average of ILS 13,769, a figure we derived. The initial permit is one year, extendable to about 63 months in total (lawoffice.org.il, checked 2026-10-07).
An application can be filed by a company registered in Israel, or by a foreign company that gives power of attorney to a representative in Israel (fbclawyers.com, checked 2026-10-07).
Whether a licensed manpower contractor, which is what an EOR entity may be, can be the sponsoring employer was not confirmed. The government pages did not open from our side, so this section rests on law-firm pages and search excerpts of the government pages.
Currency and payroll
ILS. Monthly pay is due at the end of the month for which it is earned; late-payment compensation runs from the ninth day after the due date (Wage Protection Law 1958 s.9) (he.wikisource.org, checked 2026-10-07). Bank of Israel rate on 2026-10-06: 1 USD = 3.053 ILS (boi.org.il, checked 2026-10-07).
Is Employer of Record legal in Israel?
Allowed with limits. Israel has no EOR statute. The relevant law is the Employment of Employees by Manpower Contractors Law 1996, read here from the Hebrew Wikisource copy of the statute, which is not the official publication (he.wikisource.org, checked 2026-10-07). We found no Israeli law-firm or ministry statement on employers of record. That an EOR whose client directs the day-to-day work falls within the definition is our reading of the text, and whether a foreign client with no Israeli presence is an “actual employer” under it is not settled. See also the Employer of Record glossary entry.
The rules that matter to a client:
Definition (s.1). A manpower contractor is whoever’s occupation is providing manpower services of its employees to work at another party; that party is the “actual employer”.
Licence (ss.2-3). Nobody may act as a manpower contractor without a licence from the Minister. The first licence is for one year, renewals for two years each. Conditions: three years’ experience in manpower supply or personnel management, a bank guarantee or equivalent security for obligations to employees, and no conviction involving moral turpitude in the five years before applying. We did not read the guarantee amount.
Client duty (s.10B). A client may not receive manpower services from a contractor with no licence or special permit, and must obtain a copy of the licence from the contractor.
Nine-month rule (s.12A). An employee of a manpower contractor may not be placed with the same actual employer for more than 9 consecutive months; a gap of up to 9 months does not break continuity. The Minister may exceptionally allow up to 15 months in total. After the period the worker is deemed an employee of the actual employer, and service with the contractor counts towards seniority there.
Equal conditions (s.13). Working conditions, including collective-agreement terms, that apply to employees at the workplace apply to the contractor’s employees working there, from the start of the placement.
Computing exemption (s.13A). Sections 12A and 13 do not apply to a contractor’s employee placed in computing roles, defined as maintenance, development and implementation of computer systems. The licence duty is not lifted.
Void clauses (s.15). A clause that bars the actual employer from hiring the contractor’s worker, or the worker from becoming the actual employer’s employee, is void.
Penalties (ss.20-21). Acting as a contractor without a licence: up to six months’ imprisonment. A client that contracts with an unlicensed contractor faces a fine, and a fine for each employee used. The shekel amounts were not looked up.
Law-firm commentary is dated and not about EORs. S. Horowitz & Co. wrote in 2010 that the equal-conditions and nine-month provisions apply to manpower contractors and not to genuine service contractors, and that courts look at the substance of the relationship, not the label (acc.com, checked 2026-10-07). A Lexology summary, seen only as a search excerpt, says staff of service or manpower companies may be treated as the engaging company’s employees even inside 9 months where that company is more closely tied to them, for example by recruiting them (lexology.com, checked 2026-10-07).
Risks the client carries:
Deemed employment. For non-computing roles, a worker kept with the same client for over 9 consecutive months becomes the client’s employee, with seniority carried over. A client that wants a long-term hire in such a role cannot rely on the EOR arrangement beyond that point.
Equal conditions. The client’s workplace terms, including collective-agreement terms, apply to the placed worker, so the contract and cost model may have to match what the client’s own staff get (non-computing roles).
Unlicensed provider. Taking services from a provider without a manpower licence is itself an offence for the client, with a fine for each employee used. We did not look up the fine amounts.
Substance over form. A court can treat the client as the real employer where the client recruits, directs and controls the worker, even inside 9 months.
Knesset bill documents and a “computerization employees” bill show proposals to change the computing exemption. We did not read their content or status, so treat the exemption as current law that may change. See also co-employment.
Who actually employs your hire in Israel
Israel publishes two registers we could search. The Israeli Corporations Authority (ICA) company list is an open dataset on data.gov.il, updated 2026-10-06 (data.gov.il, checked 2026-10-07); it shows no shareholders, so a link between a record and a brand rests on the name and, where available, the address. The Labour Ministry’s list of manpower contractors is a second dataset on data.gov.il (8,059 records, updated 2026-10-05); we searched it by company number and by name in Latin letters and Hebrew.
Israel branch of REMOTE EUROPE HOLDING B.V., no. 560038002: foreign company registered in Israel (ICA)
Not found
Says “we own our own legal entity in Israel, meaning we never rely on third parties” (remote.com); its Local Terms list the Israel branch under the same number; the ICA address (Ramat Gan) differs from the one in Local Terms (Tel Aviv)
$699/month global list ($599 on annual billing); no Israel price
GLOBALIZATION PARTNERS ISRAEL LTD, no. 516355674: registered in Israel (ICA); ownership not shown
Not found
Says “We’ll become the Employer of Record and use our existing subsidiary” without naming it (globalization-partners.com); the ICA entry is linked by name
From $599/month (global list, same on all country pages)
VELOCITY GLOBAL CONSULTING ISRAEL LTD, no. 516197043: registered in Israel (ICA); ownership not shown
Not found
Its Israel page says Pebl hires “through local, compliant employment contracts” and names no entity; Pebl is the former Velocity Global, so the ICA entry is linked by name
A help article, archived version of 2025-07-02, says “Justworks has local entities set up in the following countries: … Israel” (justworks.com); a rewrite of 2026-09-30 is reported in more general wording and we could not open it
Guide says, about EORs in general, that “the EOR legally hires the employee through its own local Israeli entity” (rivermate.com); it names no Rivermate entity
Israel page says “grow your global team quickly — no entity required” and does not say who employs (safeguardglobal.com)
Not published
All checked 2026-10-07. “Not found” and “None found” mean no record under the vendor’s name or number, not that none exists. Prices not marked as Israel prices are global list prices.
Own entity means a vendor statement, an Israeli Corporations Authority record by name, or both; no provider names a partner model. Source: vendor country pages and the ICA register on data.gov.il, checked 2026-10-07.
Seven of the 15 providers don’t say who the Israeli employer is, and none of the 15 turned up in the Labour Ministry’s licence list. The licence list is not proof of anything either way: the 1996 law may not reach the EOR model, or the employing company may be a different one. It does matter, because under s.10B the client must obtain a copy of the licence. Before signing, ask: “Which Israeli company signs my employee’s contract, do you hold a manpower contractor licence, and if not, on what basis do you say you don’t need one?”
How to choose an EOR in Israel
Hiring for a computing role? The nine-month limit and the equal-conditions rule do not apply, but the licence duty does. Start with providers that have an Israeli company you can look up: Deel, Skuad, Remote, G-P, Multiplier, Pebl and Borderless AI each have an ICA record. Ask for the licence copy the client is supposed to obtain.
Hiring for any other role you expect to keep? After 9 consecutive months the worker is deemed the client’s employee, with seniority carried over, and the Minister can allow 15 months at most. No provider changes that. Plan a handover to your own Israeli entity, or ask the provider in writing how it treats the limit.
Hiring a non-Israeli who needs a B/1 visa? Whether an EOR entity can be the sponsoring employer was not confirmed. G-P has a separate Israel work visas and permits article, Remote People sells a work visa service for Israel, and Playroll’s guide puts the B/1 visa at 2-3 months; these are vendor statements. Remote says the right-to-work assessment adds three days where it is needed. Ask who files, in whose name, and for which permit.
Price against completeness, or speed? Only Deel and Skuad show an Israel-specific price; the rest show global list prices from $199 to $699 a month. Deel says first hire takes 1 business day, Playroll 1-5 working days, G-P “days instead of months”, and Borderless AI shows payroll set-up at day 10-14. Skuad’s $499 is a promotion on a page marked “Updated for 2025”; confirm it before relying on it.
A global hiring platform (now a Payoneer company) covering 160+ countries across EOR, Agent of Record and contractor management, with rare published starting prices — strong for buyers who want transparent entry pricing and broad coverage in one tool.
8.0/10
★ 4.6 · 312 reviews
EOR price
Starting from $199 per employee/month
Coverage
160+ countries
Time to hire
Not publicly stated
What stands out
broad coverage: 160+ countries for EOR and contractors
published starting prices (EOR $199, AOR $99, CMS $19 per month)
payroll in 70 currencies
Not a fit for
buyers who require named security certifications (SOC 2/ISO 27001) published before purchase
buyers needing a dedicated Contractor of Record product
The oldest, most analyst-recognized EOR (founded 2012) — deepest certification stack and widest documented country footprint, but no owned-entity disclosure or dedicated Contractor of Record product.
8.3/10
★ 4.4
EOR price
From $599/mo per employee
Coverage
180+ countries
Time to hire
Vendor claim: 'hire anywhere in minutes'; no SLA published
A global employment specialist with EOR in 150+ countries on an owned-entity network, a dedicated Contractor of Record, global payroll and published flat pricing — strong for compliant hiring across many markets with transparent EOR/contractor costs.
8.4/10
★ 4.7 · 2168 reviews
EOR price
Starting at $400 per month
Coverage
150+ countries
Time to hire
Vendor claim: onboard global hires in 24 hours; compliant contract in 5 minutes (not an SLA)
Certifications
SOC 2 Type I, SOC 2 Type II, SOC 3, ISO 27001:2022
What stands out
EOR live in 150+ countries on an owned-entity network
dedicated Contractor of Record (classification, contracts, tax, payments)
published flat pricing for EOR ($400) and contractors ($40), no minimum headcount
Not a fit for
buyers needing an all-in-one HR/IT/Finance suite beyond global employment
buyers who require published global-payroll list pricing up front
A 12-year EOR (rebranded from Velocity Global in 2025) with a large G2 review base and analyst recognition across 185+ countries, but thin transparency on entity ownership and pricing.
7.8/10
★ 4.6 · 603 reviews
EOR price
$399/mo per employee
Coverage
185+ countries
Time to hire
Vendor claim: 'as little as 24 hours', no entity needed
Certifications
SOC 2 Type 2, ISO/IEC 27001:2022, GDPR
Support
Vendor claim: guidance available any time, in-house experts
What stands out
12-year track record (est. 2014) with $1B in annual global payroll processed and 200+ in-house legal experts
SOC 2 Type 2 and ISO/IEC 27001:2022 certified; states GDPR-principle compliance
Large, strongly rated G2 footprint: 4.6/5 from 597 reviews
Not a fit for
buyers needing a true Contractor-of-Record product, not general contractor management
teams that require a fully disclosed owned-vs-partner entity count before signing
A young (2023) AI-native EOR with transparent flat pricing across EOR, contractor management and payroll — but unverifiable country-ownership claims and a thinner track record than established rivals.
Primarily a US PEO and payroll platform — audited (SOC 1/2, ESAC, IRS CPEO) — with a newer, smaller EOR product covering 43 documented countries at a flat $599/employee/month.
A transparently-priced EOR and contractor platform with broad 180+ country coverage and unusually strong Africa/Middle East reach. Best for cost-conscious SMBs that want published prices and hands-on support over deep automation.
7.6/10
★ 4.7 · 209 reviews
EOR price
$399 per employee/month (no minimum)
Coverage
180+ countries
Time to hire
Vendor claim: EOR onboarding in 2-5 days; compliant contract generated in ~5 minutes
Certifications
SOC 2, GDPR
Support
24/5
What stands out
Transparent flat pricing: EOR $399/employee/mo, contractor $35/contractor/mo, no onboarding/offboarding fees
Broad 180+ country coverage with strong Africa/MENA reach
Fast self-claimed onboarding (2-5 days) and well-reviewed dedicated CSM/ESM support
Not a fit for
enterprises needing deep HRIS/finance integrations
buyers needing a dedicated Contractor of Record product
A young but fast-growing global-employment platform (180+ countries) with a real owned-entity core (38 entities), transparent flat pricing and standout human support. Best for SMBs — especially European — that value hands-on support and predictable pricing over deep automation.
7.6/10
★ 4.4 · 391 reviews
EOR price
From ~€299 per employee/month (varies by country/headcount)
Coverage
180+ countries
Entity model
38 owned
Time to hire
Vendor claim: ~48 hours in standard markets, same-day in some; longer in complex jurisdictions
Certifications
SOC 2 Type II, ISO 27001, GDPR
Support
24/7
What stands out
Broad 180+ country reach with a real owned-entity core (38 entities), not pure-partner
Transparent flat pricing; no setup/offboarding fees or annual lock-in
Fast onboarding (~48h standard) and strongly-rated 24/7 human support
Not a fit for
enterprises needing deep HRIS/finance integrations and advanced analytics
A profitable, VC-free global-employment company that rebranded from Horizons in 2026, with strong G2/Capterra scores — but a split brand identity and no disclosed owned-vs-partner entity count.
7.8/10
★ 4.6 · 495 reviews
EOR price
From $199/mo per employee
Coverage
150+ countries
Time to hire
Local contracts in 24-48 hrs; up to 2-4 weeks elsewhere
Certifications
SOC 2 Type II, ISO 27001, GDPR
Support
Business hours; avg response <2hrs (top tier)
What stands out
Founded 2018 and profitable without VC funding - a longer, more stable track record than several younger rivals
Consistently high G2 (4.7/334) and Capterra (4.9/72) scores
Widest product range reviewed here: EOR, COR, contractor management, global payroll, US PEO, recruitment, incorporation
Not a fit for
buyers wanting a single, unchanging brand name and URL for contracts
teams that require a disclosed, numeric owned-vs-partner entity split before signing
A budget-friendly, transparently-priced EOR with broad headline coverage (185+ countries) and a free contractor-management tier. Strongest for cost-conscious teams that want published prices up front rather than a sales quote.
7.8/10
★ 4.4 · 440 reviews
EOR price
Starts at $199 per employee/month
Coverage
185+ countries
Time to hire
Vendor claim: 1-3 days in most locations once documentation and contracts are approved
Certifications
ISO 27001, SOC 2 Type II, GDPR
Support
24/5 customer support; 24/7 for hiring managers and global employees
What stands out
Transparent published pricing: EOR from $199/employee/month, free contractor tier, $25/mo premium contractor tier
Broad headline coverage: EOR in 185+ countries, contractors in 150+, visas/work permits in 110+
Stated no setup fees, minimum contracts or termination fees
Not a fit for
buyers needing a dedicated Contractor of Record product
enterprises requiring extensive compliance attestations beyond ISO 27001 / SOC 2 Type II
A long-running (2015) direct-entity EOR — broadest owned-entity claim (160+ countries), a capped misclassification-protection AOR product, but no Contractor of Record and thin independent review volume.
7.7/10
★ 4.2 · 101 reviews
EOR price
From $599/mo per employee
Coverage
160+ countries
Entity model
no partners
Time to hire
Vendor claims conflict: 'days' vs '2 weeks'; no SLA
Certifications
ISO 27001, ISO 27017, ISO 27018, GDPR
Support
24-hour support team (vendor claim); 15+ languages
What stands out
160+ countries with owned legal entities and no third-party partners — the widest such claim reviewed
Transparent, publicly listed pricing for both EOR ($599/employee/month) and AOR ($199/contractor/month)
AOR ships with a capped, quantified Classification Protection benefit ($100k/contractor/month, $1M aggregate per client)
Not a fit for
buyers needing a true Contractor-of-Record product, not an authorized-agent AOR
companies with their own local entities needing standalone global payroll
One of the oldest players in the category (payroll since 2008, EOR since 2009/2010) — a large logo base and solid ratings, but no published pricing and a mixed entity model.
7.5/10
★ 4.2 · 141 reviews
EOR price
On request
Coverage
187+ countries
Time to hire
Vendor claim: 2 days once accepted; 1-2 weeks standard
Certifications
GDPR
What stands out
Founded 2008, among the longest-operating vendors in the category; still led by founder/CEO Bjorn Reynolds
1,500+ organizations served, and independently registry-confirmed owned entities in at least Spain and Singapore
NelsonHall NEAT 2025 Leader (Global EOR services) and a G2 Fall 2026 Leader badge for Contractor Management
Not a fit for
buyers who want to compare EOR pricing without a sales call
teams that need one uniform, publicly-verifiable owned-entity story across every country
buyers who want to compare EOR pricing without a sales call
What it costs to employ someone in Israel through an EOR
The EOR is a large-payroll employer, with an office or IT employee on a permanent contract, a resident aged 18 to retirement age, paid monthly in 12 payments at 2026 rates, and no salary-dependent employer relief found. Gross pay is ILS 153,000 and ILS 305,000 a year, about USD 50.1k and USD 99.9k at the Bank of Israel rate of 1 USD = 3.053 ILS on 2026-10-06 (boi.org.il, checked 2026-10-07).
Employer statutory costs only, before the EOR’s own fee. Both salaries are below the ILS 51,910 National Insurance ceiling. Source: btl.gov.il, checked 2026-10-07.
National Insurance is 4.51% of monthly pay up to ILS 7,703 plus 7.60% of pay above it, times 12. Pension is 6.5% of gross with no ceiling applied (we could not confirm that none exists). Severance is the full 8.33% deposit; with the 6% minimum the deposit would be ILS 9,180.00 and ILS 18,300.00, and the employer would carry severance liability above that. Convalescence is ILS 451.50 x 5 days in year 1.
Not included: sick pay, leave costs, travel-expense reimbursement, keren hishtalmut (optional) and employee-side deductions (employee pension 6%, employee National Insurance and health tax). Pension starts after a waiting period of 3 to 6 months, so year 1 can come out a little lower. There is no 13th salary to add.
The reduced employer National Insurance rate was 3.55% in 2021-2024 and 4.51% from January 2025. Pension (6.5%) and severance (8.33%) did not change, so on an ILS 153,000 salary the three-item total moved from ILS 31,241.03 in 2021 to ILS 31,461.63 in 2026, a change of under 1%, which is why we show no history chart (btl.gov.il, checked 2026-10-07).
The EOR’s own fee comes on top. Two vendors show an Israel-specific price: Deel at ILS 24,233 per employee per year (about ILS 2,019 a month) and Skuad at $499 a month, a promotion on a page marked “Updated for 2025”. Global list prices, where no Israel figure exists, are in US dollars per month: Remote People from $199 (EOR Plus $399), RemoFirst from $199, Playroll $399, Pebl $399, Multiplier $400, Rivermate $319-$639, Borderless AI $579, G-P from $599, Justworks $599, Atlas from $599, Remote $699 ($599 on annual billing) and Oyster $699. Safeguard Global publishes none.
Hidden costs, where published:
Deel’s Israel guide says its fee carries “no onboarding or off-boarding surcharges” (deel.com, checked 2026-10-07).
Remote’s Israel page says “no hidden fees”, without a list of fees (remote.com, checked 2026-10-07).
Playroll states “No Minimum Commitments” (playroll.com, checked 2026-10-07).
For every vendor, setup fee, deposit, minimum term and termination fee are not published for Israel. Treat a blank as unpublished, not zero.
When you don’t need an EOR
For non-computing roles, a worker placed with the same client for over 9 consecutive months becomes the client’s employee; computing roles are exempt from that rule, not from the licence. Whether an EOR can sponsor a B/1 visa was not confirmed. Source: Manpower Contractors Law 1996 (Hebrew Wikisource copy), checked 2026-10-07.
Your own Israeli entity. The route to weigh when a non-computing hire will outlast 9 months at your company, or when the hire needs a B/1 visa and no provider confirms it can be the sponsor. A foreign company can also apply for a permit through a representative holding power of attorney (fbclawyers.com, checked 2026-10-07). For the difference between an EOR and a PEO, see EOR vs PEO.
What changed in 2026
2026-01-01: National Insurance parameters for 2026: reduced bracket ILS 7,703 and maximum insurable income ILS 51,910; employer rates stay at 4.51% and 7.60%. The reduced bracket is now set by statute at ILS 7,522 indexed each 1 January (by CPI in 2026-2028, by average-wage growth from 2029), not 60% of the average wage (btl.gov.il, checked 2026-10-07).
2026-01-01: an extension order on reservists (signed 2026-04-28; some dismissal protections from 2026-04-29). Reservists cannot be dismissed during service and for a protection period after it; spouses get paid absence days; unused annual leave can be carried over for up to two years where reserve duty or an emergency prevented taking it; employers are reimbursed by the National Insurance Institute for reserve-duty days (20% of daily income, retroactive to service from 2026-04-01) (shibolet.com, checked 2026-10-07). We read a law-firm summary, not the order.
2026-01-01: convalescence pay for the private sector rose from ILS 418 to ILS 451.50 a day (+8%), retroactive to the start of 2026; the order was published on 2026-08-18, and employers that paid the old rate must top up (shibolet.com, checked 2026-10-07).
2026-04-01: minimum wage rose from ILS 6,247.67 to ILS 6,443.85 a month (btl.gov.il, checked 2026-10-07).
2026-12-31: the temporary order that set the employer reduced rate at 4.51% (3.55% in 2021-2024) runs to the end of 2026, with an option to extend for two more years subject to Finance Minister and Labour Committee approval. No extension decision was found at the check date (btl.gov.il, checked 2026-10-07).
Pending, no date: Knesset bill documents and a “computerization employees” bill show proposals to change the computing exemption of the Manpower Contractors Law. Their content and status were not read.
Numbers vendors haven’t updated
Minimum wage. RemoFirst’s Israel guide gives ILS 6,247.67 (the 2025 rate) and Borderless AI’s gives ILS 5,880; the rate in force is ILS 6,443.85 from 2026-04-01. Atlas HXM’s page cites a minimum wage dated 2024-04-01 (remofirst.com, hireborderless.com, atlashxm.com, checked 2026-10-07).
How we built this page
Facts were collected and checked on 2026-10-07 against Israeli statutes (read from Hebrew Wikisource copies), the National Insurance Institute’s 2026 employer letter and law-firm commentary, some of it read in summary form. We searched the Israeli Corporations Authority company list and the Labour Ministry’s list of manpower contractors on data.gov.il for each provider, by number and by name; where a vendor operates through a differently named company, our search cannot see it. Providers are ordered with stated or registered own entities first, by published Israel price and completeness of data, then those that do not disclose; no provider pays for placement.
Frequently asked questions
How much does an Employer of Record cost in Israel?
Two layers. Employer statutory costs are 22.04% of gross on an ILS 153,000 salary (ILS 33,719.13) and 22.23% on ILS 305,000 (ILS 67,812.73). The EOR fee comes on top: list prices in our table run from $199 to $699 per month, and only Deel (ILS 24,233 a year) and Skuad ($499 a month) show an Israel-specific price.
Is Employer of Record legal in Israel?
Yes, with limits. Israel has no EOR statute; employing people to work for another company is manpower-contractor activity that needs a Labour Ministry licence, and a client may not take staff from an unlicensed contractor. We found no law-firm or ministry statement on EORs specifically, so this is our reading of the Manpower Contractors Law 1996.
Which EOR providers have an Israeli entity?
Eight of the 15 say or show they use their own Israeli entity: Deel, Skuad, Remote, G-P, Multiplier, Pebl, Borderless AI and Justworks. Seven of them have a record in the Israeli Corporations Authority register; the register does not show owners, so the link rests on the name. The other seven do not say who the Israeli employer is.
Which EOR in Israel has a manpower contractor licence?
We checked all 15 providers against the Labour Ministry list of manpower contractors (8,059 records, updated 2026-10-05) and found none. That does not prove the absence of a licence, and whether the law applies to an EOR is not settled. Ask the provider for a copy of its licence or its written reasoning.
What are the risks of hiring through an EOR in Israel?
For non-computing roles, a worker kept with the same client for more than 9 consecutive months is deemed the client's employee, with seniority carried over. Taking staff from an unlicensed contractor is an offence for the client, with a fine for each employee used. Courts look at substance, so a client that recruits and directs the worker can be treated as the employer.
Should I hire a contractor instead of using an EOR in Israel?
If the person works independently, yes: see [how to hire contractors in Israel](/hire-contractors/israel/) and [how to pay them](/software/contractor-payouts/israel/). If the role is employment under your direction, a contractor label does not change that. See [EOR vs PEO](/blog/eor-vs-peo/).
Can an EOR in Israel sponsor a work visa?
Not confirmed. Foreign nationals need an employer-specific permit and a B/1 visa; the expert route requires pay of at least twice the average wage, about ILS 27,538 a month. An application can come from an Israeli-registered company or from a foreign company with a representative holding power of attorney. Ask the provider in writing who files.
Can I keep an EOR employee in Israel for longer than 9 months?
For computing roles (maintenance, development and implementation of computer systems) the 9-month rule does not apply, though the licence duty does. For other roles, a worker placed with the same client for over 9 consecutive months becomes the client's employee; the Minister may allow up to 15 months in total. Proposals to change the computing exemption exist; their status was not confirmed.
Where to go next
These platforms head to head
The full listings
Hiring contractors in Israel instead
Employer of Record in other countries
Sources
The vendor pages every fact came from, with the date each was checked.
15 platforms tracked in this category. Every fact in the entries above comes from the vendor's own pages — each carries a footnote with the source and the date we checked it, and where a vendor publishes nothing we leave the field out rather than guess. Scores are ours and are not for sale. Full methodology · Report an error
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