Payroll Services in Israel

Expert payroll for Israeli tech

For companies without a local entity:

7 business days
Full payroll setup, registrations, and onboarding completed within a week.
Monthly reporting
We process pay stubs, deductions, and submit reports to Mas Hachnasa and Bituach Leumi.
Compliant with local standards
All salaries, contributions, and benefits structured according to Israeli labor law and tax rules.
IP protection included
Employment contracts include clauses securing confidentiality, IP ownership, and invention rights.
Remote, on-site, hybrid
We support flexible work models with legally sound contracts and expense coverage.
Built for agility
Scale your team up or down without changing providers or dealing with fixed agreements.

Israel

Globally connected infrastructure, built for high ROI.

Deep engineering expertise, STEM background, and cross-functional talent.

Legal precision and strict enforcement of labor laws.

GDP

$583.36 billion (2025 projection)

Language

Hebrew (English widely used in business)

Currency

Israeli Shekel (₪)

Developer salary range

₪160k – ₪480k/year ($42k–$125k)

Taxes in Israel

Income (Mas Hachnasa)

10%–50%, withheld monthly

National insurance (Bituach Leumi)

Approx. 26.5% employer-paid
Approx. 3.5%–12% employee-paid

Freelancers (Atzma’im)

Income-based contributions, 17% VAT (Ma’am)

Reporting

Monthly reports filed with Bituach Leumi and Tax Authority (Rashut HaMisim).

Payroll in Israel slowing you down?

Get a partner who knows the system.

Employment laws

Minimum wage (2025)

₪5,571/month ($1,500 USD)

Overtime pay

125%–150%, depending on hours

Payroll frequency

Monthly

Pay stub

Must list all earnings and deductions; can be digital or printed.

Benefits in Israeli IT

Pension and public health insurance are funded through employer contributions via Bituach Leumi.
Most tech employees receive 22 days of vacation plus national holidays. Entitlement grows with seniority.
A December bonus, called “13th salary”, is widely offered in the Israeli tech sector.
Parental leave can last up to 26 weeks, with partial pay. Fathers receive 7–14 days.
Other corporate bonuses include private health plans, remote work stipends, and wellness budgets.

Legal guide for tech employers

Before you pay your Israeli team, you need to classify roles correctly and meet all employer duties.These guides break it down clearly for tech companies.

Classification of Israeli tech employees

Contractors in Israel

Remote workers in Israel

Equity and stocks in Israel

Pay stub requirements in Israel

Payroll specifics in Israel

Classification of Israeli tech employees

Employees and independent contractors

Get classification right to avoid fines, back payments, and unnecessary legal trouble. In Israel, roles must match how the work is done.

Employees (עובדים שכירים/ ovdim s’khirim)

Definition

Legally hired under a full employment agreement, with all rights and protections set by Israeli labor law.
Key rights and benefits:

Public healthcare and pensions via Bituach LeumiUsually 22 paid vacation days plus national holidays
13th salary (common in tech, paid in December)
Paid parental and sick leave
Severance pay and notice periods

Work structure

Employees follow company policies, work on internal systems, and report to managers.

Common roles

Backend Developers, QA Engineers, UI/UX Designers, Data Scientists, Product Managers, In-house Ops or HR

Independent contractors (עובדים עצמאיים / atzma’im)

Definition

Self-employed professionals working under freelance contracts. Not covered by employee protections.

Tax registration

Contractors register with the Rashut HaMisim, obtain a tax ID (Teudat Zehut or passport-linked Mispar Zehut), open a business account, and issue invoices. They handle VAT, income declarations, and national insurance on their own.

Work structure

Contractors choose their hours, use their own equipment, and are not managed as internal staff.

Common roles

Freelance Developers, DevOps Consultants, Technical Writers, Interim CTOs

Contractors in Israel

In Israel, job structure matters more than job location. To stay within legal limits, make sure your contractor is not acting like an employee.

When contractors are reclassified

A contractor may be treated as an employee by Israeli authorities if they:

Work on a set schedule defined by the company
Use the company’s tools or systems
Report to a manager or team lead
Work mainly for one client over time

Risk for remote developers

Remote work doesn’t guarantee contractor status. A developer might be seen as an employee if they:

Join team standups or check-ins regularly
Submit deliverables for approval
Use internal tools like GitHub, Jira, or Slack
Are paid on a recurring schedule or per milestone

Remote workers in Israel

Remote employees in Israel must have legal employment contracts and be fully registered for payroll, taxes, and benefits.

Legal work status

Employees must be Israeli residents or hold a valid B/1 work visa. End of employment may affect their visa or residency rights.

Work tools and expenses

Companies are expected to cover reasonable home office costs, such as internet, electricity, or equipment—outlined in the contract.

Health and safety at home

Employers are still responsible for safety, even off-site. This includes ergonomic basics and clear instructions for a safe workspace.

Data handling and privacy

Remote work must follow Israeli privacy rules (Privacy Protection Law, 1981 / Hok Haganat HaPratiyut) and GDPR. Access to internal systems should be secure and policy-based.

Payroll obligations

Remote setups do not change legal responsibilities. Full salary, benefits, and reporting must be handled on time.

Equity and stocks in Israel

Many tech companies offer stock-based compensation. In Israel, these are treated as part of regular income and must follow strict reporting rules.

Stock options and RSUs

Options, RSUs, and phantom shares are allowed. Tax applies when shares vest or are exercised, based on market value at that time.

Payroll reporting

Equity must be declared monthly to Rashut HaMisim. Value is added to gross pay and shown on the pay stub.

Simple alternatives

Companies sometimes use milestone-based cash bonuses instead of equity—they’re easier to manage and still tied to performance.

Social contributions

All equity gains are treated as salary and subject to Bituach Leumi and health insurance contributions. The full amount appears on the pay stub.

Foreign equity

If equity is granted from a parent company abroad, Israeli employees must still report it locally. GEOR ensures correct classification and reporting.

Pay stub requirements in Israel

Pay stubs (תלוש שכר / Tlush Sekher) in Israel must be issued by payday. The employer is responsible for accuracy and must store pay stub records securely for at least 7 years.

Each pay stub must include:

Gross pay
Net pay after deductions
Breakdown of income tax and Bituach Leumi
Employment period covered
Bonuses, allowances, and benefits
Employer and employee ID numbers

Payroll specifics in Israel

Some rules apply everywhere, others depend on contract structure or benefits setup.

13th salary

Though not legally required, most Israeli tech companies pay a 13th-month bonus in December.

Complex contractors deductions

Self-employed professionals must handle progressive deductions, report income monthly, and charge 17% VAT (if registered).

Bonuses are regulated

Bonuses are treated as taxable income and must appear separately in payroll filings.

Cross-border developers

Employees working from abroad under Israeli contracts often require additional reporting or fiscal identifiers.

Salary paid only in shekels

Even if your headquarters uses dollars or euros, Israeli labor law requires payments to be made in local currency.

Fixed deadlines for payroll submission

Companies must submit payroll data to Bituach Leumi and Mas Hachnasa by the 15th of each month.

Security protocols for pay stubs

All electronic pay stubs must be issued through certified systems that encrypt personal data and track delivery.

Payroll data retention

Seven-year retention is standard. Every pay stub, Bituach Leumi report, and filing must be archived for audits.

Where payroll slips become audits

Israeli authorities track every detail. Missteps in filings or pay stubs are hard to undo.

Tech pay transparency

Сontracts and pay stubs must clearly show total pay, exceeding the legal minimum.

Pay stub compliance

Each pay stub must include all deductions, tax ID, and benefits breakdown.

Bituach Leumi filings

Incorrect or delayed social security reports block access to healthcare or pensions.

Benefits tracking

Accurate calculation of paid vacation, sick leave, and 13th salary is required.

Misclassifying freelancers

If contractors follow employee-like routines, a company may face penalties.

Remote work obligations

Employers must cover work-from-home costs and document each remote setup properly.

Data protection

Personal and salary data must be handled under GDPR and Israeli privacy law.

IDF reserve pay

Israeli law requires payroll continuity during IDF reserve duty.

Precision for Israeli payroll

Our service is built to match Israeli rules and real tech workflows, removing errors and slowdowns.

Everything covered monthly

We register employees, calculate contributions, and submit reports every month.

Payments through Israeli banks

We route all salary transfers through local banking systems to avoid delays, blocks, or audit triggers.

Employees and contactors

We help you classify roles correctly to avoid penalties.

On-time salary and reports

Pay stubs delivered monthly with full breakdowns and legal deductions.

Bonuses and equity included

From RSUs to performance rewards — everything is reported and declared.

Corporate perks made easy

Add health plans, food stipends, or coworking budgets without extra admin.

Your data is protected

Encrypted storage and local compliance with Israel’s data protection law.

Reliable payroll for Israeli teams

We’ve supported hundreds of tech teams over the years. Here’s what we’ve delivered and what you can expect:

96%

reduction in hiring time.

40%

savings in HR and operational costs.

faster market entry.

92%

employee retention rate.

Lean payroll pricing

Our base package is ideal for early hires, startups, and distributed teams entering Israel. It’s perfect for testing the market, converting contractors, or hiring your first developers.

Basic

Onboarding within 7 days
Payroll processing
Pension, social fees, and reporting

$499

per employee/ month.
No hidden fees or extra charges.

Tech-ready payroll
in Israel

You don’t need in-house HR or a local entity to pay your developers in Israel. Our payroll services provide full legal coverage without extra complexity.
If you’re ready to start payroll in Israel, book a call and we’ll guide you through the setup.

Client Feedback

Anthony Knierim

Managing Director

Reward Gateway

GEOR provided recruitment services for us. We had collaborative sessions where we explained our requirements for the position, and we spoke about the candidates profile in terms of qualifications, salary, and experience. Specifically, we were looking for a sales position, so we wanted candidates with previous experience in software sales within the B2B industry.Regarding technologies, we used GEOR’s own proprietary HR management software.

Edward Rybicki

CIO and CTO

Mastronardi Produce

GEOR’s approach was comprehensive, addressing every aspect of our HR requirements. From recruitment to employee relations, payroll to compliance. Their recruitment strategies were particularly impressive. GEOR meticulously sourced candidates tailored to our specialized roles, ensuring we maintained a talented and dedicated workforce. Moreover, their onboarding process was seamless, facilitating a smooth transition for new hires and minimizing disruption to our operations.

Aaron Larson

CEO

Midwest Evaluation and Research

Honestly, I was shocked that only two people, recruited by an agency in a few weeks might I add, would be enough to deliver an MVP in such a short amount of time. Of course, I am extremely happy with the results and consider this to be a lucky period of time. Our new recruits were mostly because of DevsData doing a great job finding me the perfect people to work with.

Ivanets Serhii

CTO

Ivanets Serhii

As we expanded our sales team, we used them three times, and we recently hired a sales manager to manage our business development reps. Hiring is difficult, but they help us define roles, create job postings, and test potential candidates. They find the best candidate for each role, and everyone they find suits the salary range we have available. That really differentiates them from other sales recruitment firms.

Mandy Anderson

HR Director

Serenity Hospice and Home

Their expertise streamlined our HR processes, allowing us to focus more on our primary mission: providing compassionate care. GEOR’s approach was comprehensive, addressing every aspect of our HR requirements. From recruitment to employee relations, payroll to compliance, they demonstrated a profound understanding of healthcare regulations, ensuring Serenity remained compliant while fostering a positive work culture.

Alexis Bogan

Manager

Calicraft

GEOR has delivered exceptional HR Outsourcing services for Calicraft, a company dedicated to crafting beverages that inspire positive change and challenge the status quo. With a mission to make the world a kinder place, Calicraft relies on GEOR’s expertise to streamline their human resources operations and foster a supportive work environment.

Chuck Salem

CEO and Co-Owner

Unique Venues

We first requested a meeting with the GEOR team. Following the meeting, they began to thoroughly examine our project and attempted to comprehend our expectations. When they realized what we needed, they began presenting potential candidates to us and began the interview process. We closed the positions with GEOR’s full support after two rounds of interviews.

Compare Israeli payroll providers

While others offer templates, we deliver precision for technology companies.

Feature	GEOR	Deel	Neeyamo	Multiplier
Local expertise	Based in Israel, full Hebrew-speaking team	Global coverage, but Israel is one of many	Claims local coverage, but little public team presence	Global-first, Israel is outsourced
Accuracy in filings	Full payroll cycle incl. Bituach Leumi, TLV-ready pay stubs	General templates, limited to platform logic	Offers Israeli setup, but slower to implement	Requires manual validation in many cases
Tech-first approach	Built for IT: fast onboarding, salary structuring for engineers	Built for general HR, not IT-focused	No tech focus	Generic SME focus
Equity and bonuses	Handles equity, RSUs, bonuses within legal payroll	Limited support, often off-platform	Possible, no clear process	No equity support
Speed and support	7-day onboarding, local response team, no ticket queues	Delayed replies, ticket-based support	Regional support, but slower handoff	FAQ-based, support depends on tier

Error-free payroll
in Israel

We’ve spent over 15 years inside global tech hiring — we know what works and what slows teams down. In Israel, even small payroll mistakes can cause audits or delays. GEOR runs your payroll without errors or rejections. Everything you need to launch fast is already built into our process, and the pitfalls are already avoided. Our setup includes all the registrations, filings, and employee support needed for smooth, fully legal onboarding and payroll processing. Your developers get what they need. You meet every legal requirement from day one.

GEOR

Compliant payroll.

Your peace of mind.

FAQs

What types of companies use payroll services in Israel?

Mostly SaaS companies, AI and tech teams, and international firms expanding into Israel.

How is GEOR different from other payroll providers in Israel?

We don’t rely on automation alone. Our team operates from Israel, with hands-on knowledge of local filings, Bituach Leumi, pay structures, and tech-sector specifics.

Can I run payroll without opening a company in Israel?

Yes. You can onboard and pay employees without setting up a local entity.

What is specific about payroll in Israel?

Pay stubs must follow strict formatting rules. All filings go monthly to tax and social security authorities. These reports must also reflect accurate work hours and legally required deductions.

Can you support international teams hiring in Israel?

Yes, we work with global companies managing payroll for local and remote staff.

Which taxes and contributions do you manage?

We calculate and file income deductions, Bituach Leumi (social security), and all employer contributions.

Can equity be included in payroll for developers?

Yes, we process RSUs, stock options, and bonuses as part of regular payroll filings.

Do you support remote and hybrid teams?

Yes, we handle remote contracts, reimbursements, and ensure legal setup for off-site work.

Is a local HR team required?

No, you don’t need one. We take care of onboarding, monthly payroll, and benefits without internal HR.

How secure is the employee data?

We follow GDPR and Israeli privacy law. Pay stubs are encrypted and delivered securely.

Can you support both employees and contractors?

Yes, we manage employment contracts and help structure legally valid agreements for independent workers.

How do you determine employee vs. contractor?

We review control, schedule, and payment structure, based on Israeli labor rules.

How do contractors handle their own taxes?

They register with the Rashut HaMisim, issue invoices, and manage social security and VAT obligations.

How are pay stubs delivered?

Employees receive digital pay stubs showing gross pay, deductions, and contribution details.

Need more than just payroll?

If you’re ready to support your Israeli team fully, explore our employment models.

Employer of Record in Israel (EOR)

Hiring without a local entity? We become the legal employer, so your team gets mandatory benefits.

Professional Employer Organization in Israel (PEO)

Already operating in Israel? We manage your HR workload, from pay stubs to perks.