Employer of record services in Israel

Yes. We manage Bituach Leumi (National Insurance) contributions, along with mandatory pension contributions under Israel’s pension extension order, which requires employer contributions of at least 6.5% of salary. We also manage severance pay (pitzuim), typically one month’s salary per year of service, much of which is pre-funded through ongoing pension contributions rather than paid as a lump sum at exit.

Given Israel’s competitive tech sector, benefits well above statutory minimums are close to standard: enhanced pension and severance contributions (often called ‘Bituach Menahalim’), study fund contributions (Keren Hishtalmut, a tax-advantaged savings vehicle), and private health insurance supplementing Israel’s public system. Equity or bonus structures are also heavily weighed by candidates in Israel’s startup-dense job market.

Statutory notice starts at one day per month during the first year of employment and reaches one month after a year of service. Severance pay (pitzuim) of one month’s salary per year of service is due for most terminations, though this is frequently pre-funded through the employer’s ongoing pension contributions under Section 14 arrangements, which changes how much is owed at the point of termination itself.

An EOR can typically onboard within one to two weeks for National Insurance and pension registration, compared with the several weeks needed to incorporate an Israeli entity and register with the Tax Authority and National Insurance Institute.

Israel’s pension-funded severance structure and its highly competitive tech compensation norms require local expertise to manage and benchmark correctly. An EOR takes on that compliance and the associated liability, which is typically the more efficient way to access Israel’s deep engineering and cybersecurity talent pool.