Employer of Record in Israel: The Compliant Way to Hire Without an Entity

Expanding into Israel? An Employer of Record (EOR) lets you hire top Israeli talent — engineers, sales managers, R&D leads — without registering a local company, navigating Israeli labour law alone, or building payroll infrastructure from scratch.

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📅 Updated April 2026 ✅ Verified for Israeli Labour Law 🏆 PwC-Reviewed Compliance

What Is an Employer of Record in Israel?

An Employer of Record (EOR) is a licensed Israeli company that legally employs workers on behalf of a foreign organisation. CWS Israel appears as the employer of record on all legal documents — employment contracts, payslips, tax filings, and social insurance registrations — while you retain complete day-to-day management of the employee's work.

What CWS Israel Manages on Your Behalf

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Employment Contracts

Compliant Israeli employment agreements drafted in both Hebrew and English, covering all mandatory terms under Israeli labour law.

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Monthly NIS Payroll

Full payroll processing with income tax withholding (Mas Nakuy), Bituach Leumi deductions, and compliant payslip generation.

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Bituach Leumi

Employer registration and monthly contributions to Israel's National Insurance Institute on behalf of each employee.

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Pension Fund (Keren Pensia)

Selection, setup, and ongoing contributions to a compliant Israeli pension fund — 6.5% pension + 8.33% severance.

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Benefits & Leave

Annual leave tracking, sick day administration, recovery pay (Dmei Havra'a), and all mandatory statutory benefits.

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Termination & Shimua

Full management of the termination process, including the mandatory Shimua (due process hearing) and severance calculations.

How the CWS Israel EOR Process Works

You Identify Your Hire

You select your candidate and agree on their role, salary, and start date. CWS Israel advises on competitive NIS salary benchmarks and mandatory benefit structures.

We Issue the Employment Contract

CWS Israel drafts and signs a compliant Israeli employment agreement directly with the employee, covering all mandatory terms under Israeli labour law.

We Handle All Registrations

Tax Authority, Bituach Leumi, pension fund — all registered and managed by CWS Israel. You sign the Quote Acceptance form and we begin onboarding within 48 hours.

Monthly Payroll & Invoicing

We run payroll in NIS every month and invoice you in your preferred currency — USD, EUR, GBP, or NIS. Our management fee is included in the monthly invoice.

Ongoing Compliance & Support

We handle all HR administration, government filings, and compliance monitoring year-round. Annual PwC compliance review included.

Key Israeli Labour Law Facts Every Employer Must Know

Working Week

42 hours — not 40. This affects overtime calculations. Hours beyond 42/week are paid at 125–150% of the hourly rate.

Notice Period

Tiered by tenure: 1 day per month worked (months 1–6); increasing to a full calendar month after 12 months of employment.

Severance Pay (Pitzuim)

1 month's salary per year of service, payable on termination unless offset by the pension fund's severance component.

Shimua Hearing

Before terminating an employee, employers must conduct a formal due process hearing — even in cases of poor performance or redundancy.

Annual Leave Minimum

Minimum 14 days per year for the first 4 years, increasing with seniority. Leave cannot be waived or bought out during active employment.

Pension Mandate

Employer must enrol employees in a pension fund within 6 months. Contributions: employer 6.5% + 8.33%; employee 6%.

Frequently Asked Questions

Everything you need to know — answered clearly.

What is an Employer of Record in Israel?+

An EOR is a licensed Israeli company that legally employs workers on behalf of a foreign business. CWS Israel acts as the legal employer — handling employment contracts, payroll, tax withholding, Bituach Leumi, pension, and compliance — while you manage the employee's day-to-day work.

How quickly can CWS Israel onboard a new employee?+

Typically within 48–72 hours of receiving the signed Quote Acceptance form and the employee's documentation. In most cases, a compliant employment contract is issued and payroll registered within one week of engagement.

Do I need to set up an Israeli company to use an EOR?+

No. That is the defining benefit of the EOR model. CWS Israel is the legal employer, so no Israeli company registration, bank account, or Tax Authority employer registration is required on your part.

What happens if I need to terminate an employee?+

CWS Israel manages the full termination process, including conducting the mandatory Shimua (due process hearing), calculating Pitzuim (severance pay), processing the notice period, and issuing all required termination documentation in accordance with Israeli labour law.

Does CWS Israel's EOR service include an annual compliance review?+

Yes. CWS Israel's EOR service includes an annual compliance review conducted by PwC Israel, providing independent verification that all payroll, tax, and labour law obligations are being met correctly.

Ready to Hire in Israel — Compliantly?

CWS Israel handles the complexity so you can focus on your business. Get a personalised quote in under 24 hours.

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✓ No Israeli entity required ✓ Onboard in 48 hours ✓ PwC annual compliance review ✓ Invoice in USD, EUR or GBP