Employer of Record in Israel

What it costs and what the law requires to employ someone in Israel through an EOR, with every figure cited to a primary source.

At a glance

To employ someone in Israel, an employer pays ~18.55% (employer National Insurance (Bituach Leumi) 4.51% on the first ILS 7,703/month and 7.6% between ILS 7,703 and the ILS 51,910/month ceiling, about 6.05% blended, plus the mandatory pension deposit of 6.5% and severance deposit of at least 6% of salary under the pension extension order); for resident employees, lower National Insurance rates for non-residents↗ in mandatory contributions on top of gross salary, must give 16 days a year in years 1-5 (counting weekly rest days; about 12 working days on a 5-day week)↗ of paid annual leave, and 1 month (after 1 year)↗ of notice to terminate. An EOR lets you hire here without your own legal entity.

Employer cost burden
~18.55% (employer National Insurance (Bituach Leumi) 4.51% on the first ILS 7,703/month and 7.6% between ILS 7,703 and the ILS 51,910/month ceiling, about 6.05% blended, plus the mandatory pension deposit of 6.5% and severance deposit of at least 6% of salary under the pension extension order); for resident employees, lower National Insurance rates for non-residents↗
Statutory annual leave
16 days a year in years 1-5 (counting weekly rest days; about 12 working days on a 5-day week)↗
Every country's annual leave
Minimum wage
₪6,443.85/month↗
Every country's minimum wage
Notice period
1 month (after 1 year)↗
Standard working week
42 hours↗
Currency
ILS↗

Every figure links to the page that states it. This page's figures were read at their sources between Aug 18, 2026 and Oct 30, 2026, and every cited page is checked again each week (how we verify).

Best fits

Best EOR providers for one employee in Israel

Ranked the way Get matched ranks a hire: employing through its own entity in Israel, a lower published fee and no deposit, each read from the provider's own pages. A provider whose referral program pays us carries a labeled referral boost, and the few providers we do not work with are listed below, never among these three.

Set team size or visa need, and get quotesStill looking for the person? Ask for candidates tooHow referral programs affect ranking

Hiring demand

Remote jobs open only to people in Israel

Companies hiring remotely for a role that must be based in Israel need someone employed there. Without an entity of their own in Israel, an employer of record is how they do it.

Companies hiring full-time
48↗
Contract roles
32↗

Israel ranks #51 of 177 countries↗ for full-time remote jobs open only to its residents. Most hired fields: Developer, Marketing, Product.

Counted daily from job postings on Himalayas, a remote job board: a job counts for a country when it accepts applicants based only there. Counting began Oct 29, 2026; a job posted before then counts if it was still open that day. Last updated Nov 11, 2026.

Cost of employment

What an employer pays in Israel

The statutory employer contributions that sit on top of gross salary, each cited.

Rates are the statutory employer contributions; the total employer burden in Israel is ~18.55% (employer National Insurance (Bituach Leumi) 4.51% on the first ILS 7,703/month and 7.6% between ILS 7,703 and the ILS 51,910/month ceiling, about 6.05% blended, plus the mandatory pension deposit of 6.5% and severance deposit of at least 6% of salary under the pension extension order); for resident employees, lower National Insurance rates for non-residents↗. Confirm the current rates for your case before hiring. Compare employer costs in every country. Compare employer pension contributions in every country.

Total cost

What an EOR really costs in Israel

The full cost to employ combines gross salary, the statutory employer burden, and the EOR provider's own service fee.

The total cost to employ someone in Israel through an EOR is their gross salary, plus ~18.55% (employer National Insurance (Bituach Leumi) 4.51% on the first ILS 7,703/month and 7.6% between ILS 7,703 and the ILS 51,910/month ceiling, about 6.05% blended, plus the mandatory pension deposit of 6.5% and severance deposit of at least 6% of salary under the pension extension order); for resident employees, lower National Insurance rates for non-residents↗ in mandatory employer contributions, plus a per-employee service fee from the provider. Across the 56 of 93 providers that publish a fee, the median is $349/employee/month (from $99 to $740); the rest quote per country.

Flat-rate illustration at a $100,000↗ salary
Gross salary
$100,000↗
Employer statutory contributions (~18.55%↗)
$18,550
EOR service fee (median $349/mo)
$4,188
Illustrative annual budget
$122,738

This illustration applies the representative rate to the full salary. It does not apply contribution caps, local-currency thresholds or employee eligibility rules, so it is not a payroll quote. Actual cost depends on the salary, the provider, and country-specific quotes; some countries also add mandatory items such as 13th-month pay or severance accruals. Run your own numbers in the calculator.

Providers

EOR providers that employ in Israel

Each provider below names Israel on its own website as a country where it offers Employer of Record. Cheapest published starting fee first.

29 providers name Israel on their own websites as a country where they offer EOR. Published starting fees among them run from $199 /mo↗ (Asanify, Gloroots, RemoFirst and 3 more) to $699 /mo↗ (Oyster HR and Safeguard Global); 9 quote Israel on request. 1 of them says it employs here through its own entity.

Not sure which one fits? We rank these providers for your team size and visa needs, and get you quotes from the ones you pick.

Get matched

Before you sign with one of them: the questions worth asking each provider. Already employing someone in Israel through an employer of record? Check what you pay against these fees.

A listing is the provider's own statement that it can employ in Israel, read on its site on Nov 9, 2026. Fees are each provider's cheapest published rate, not a quote for Israel. We read the country lists and country pages of all 93 providers we track; 78 name the countries they serve, and a provider that does not name Israel on its own site is not shown here, even where it may serve it. Confirm availability for your role and contract type before signing.

Employment law

Statutory rules in Israel

The employment terms an employer must meet, each linked to the source that states it.

Paying someone in Israel as a contractor instead? The law looks at how the work runs, not at what the contract calls it. Check whether the role is employment.

Hiring

How to hire in Israel

Two ways to put someone on payroll here.

Use an employer of record

An EOR already has an entity in Israel and employs your worker on your behalf, handling payroll, tax and the statutory terms above. Fastest way to hire without incorporating.

Compare EOR providers
Economy

Israel at a glance

World Bank indicators (2025) for context on the labour market.

GNI per capita (Atlas method)
$56,180↗
GDP per capita
$60,337↗
GDP (current US$)
$610.8B↗
GDP growth
2.9%↗
Inflation, consumer prices
3%↗
Population, total
10.1M↗
Population ages 15-64
60.1%↗
Urban population
91.6%↗
Labour force, total
4.8M↗
Labour force participation rate
65.5%↗
Female labour participation rate
62.3%↗
Male labour participation rate
68.8%↗
Unemployment rate
3.5%↗
Wage & salaried workers
88.7%↗
Self-employed
11.3%↗
Questions

Hiring in Israel: FAQ

How much does it cost to employ someone in Israel?

On top of gross salary, mandatory employer contributions in Israel run ~18.55% (employer National Insurance (Bituach Leumi) 4.51% on the first ILS 7,703/month and 7.6% between ILS 7,703 and the ILS 51,910/month ceiling, about 6.05% blended, plus the mandatory pension deposit of 6.5% and severance deposit of at least 6% of salary under the pension extension order); for resident employees, lower National Insurance rates for non-residents↗, made up of mandatory pension deposit 6.5% plus severance deposit at least 6% of salary (pension extension order, rates from 1 January 2017)↗; National Insurance (Bituach Leumi), employer 4.51% up to ILS 7,703 a month and 7.6% above, to the ILS 51,910 ceiling↗. An employer of record adds its own per-employee service fee on top; across the 56 of 93 providers that publish a fee, the median is $349 per employee per month.

What does an EOR charge to employ someone in Israel?

EOR service fees are billed per employee per month, on top of salary and statutory employer contributions in Israel. The contribution basis is ~18.55% (employer National Insurance (Bituach Leumi) 4.51% on the first ILS 7,703/month and 7.6% between ILS 7,703 and the ILS 51,910/month ceiling, about 6.05% blended, plus the mandatory pension deposit of 6.5% and severance deposit of at least 6% of salary under the pension extension order); for resident employees, lower National Insurance rates for non-residents↗. Providers rarely publish a Israel-specific fee: across the 56 providers on our price board that publish a price, the median is $349 per employee per month (from $99 to $740), and the rest quote per country. Request a quote for Israel for an exact figure.

How much paid annual leave is mandatory in Israel?

Statutory paid annual leave in Israel is 16 days a year in years 1-5 (counting weekly rest days; about 12 working days on a 5-day week)↗.

What is the statutory notice period in Israel?

The minimum employer notice period in Israel is 1 month (after 1 year)↗.

What is the minimum wage in Israel?

The statutory minimum wage in Israel is ₪6,443.85/month↗.

What is the maximum probation period in Israel?

The maximum statutory probation period in Israel is No statutory max (~3 months typical)↗.

Which EOR providers can employ someone in Israel?

29 of the 93 providers we track name Israel on their own websites as a country where they offer Employer of Record. By published starting fee: Asanify from $199 /mo↗, Gloroots from $199 /mo↗, RemoFirst from $199 /mo↗, Skuad (Payoneer) from $199 /mo↗, Tarmack from $199 /mo↗, and 15 more with a published fee; 9 quote Israel on request. Each provider's listing is its own claim, so confirm availability for your role and contract type before signing.

How many companies are hiring remotely in Israel?

In the 30↗ days to Nov 11, 2026, 48 companies↗ posted 92↗ full-time remote jobs open only to people based in Israel on the Himalayas job board, plus 32↗ contract roles, which ranks Israel #51 of 177 countries↗. The most hired fields are Developer, Marketing, Product. A company hiring this way without its own entity in Israel employs through an employer of record.

Do I need a local entity to hire an employee in Israel?

No. An employer of record (EOR) already holds a legal entity in Israel and can employ your worker there on your behalf, running local payroll, tax and compliance, so you can hire without setting up your own entity. That settles the employment side only: what the person does for your company (signing or negotiating its contracts, running a sales team, working from one place for most of the year) can still make your company taxable in Israel as a permanent establishment, whoever employs them.

When a hire abroad makes your company taxable there

Nearby

Compare other countries

Hiring in more than one country? See which providers cover the Middle East.

In the same region, largest economies first

The largest economies we cover