EOR Services in Israel: Hire Top Talent Without Opening a Legal Entity
- SGF Global
- 1 day ago
- 3 min read
As Israel continues to position itself as a global hub for innovation, technology, and entrepreneurship, many international companies are looking to tap into the country’s highly skilled talent pool. However, hiring in Israel presents a number of regulatory and legal challenges, particularly for businesses that don’t have a local entity. This is where Employer of Record (EOR) services come into play.
What is an Employer of Record (EOR)?
An Employer of Record is a third-party organization that acts as the official employer for a worker, handling all employment-related tasks on behalf of another company. This includes processing payroll, managing tax withholdings, administering employee benefits, and ensuring compliance with local labor laws.
For businesses expanding into Israel, an EOR allows them to hire and manage local employees without the burden of setting up a legal entity or navigating complex labor regulations.
Why Use an EOR in Israel?
Israel has one of the most educated and innovative workforces in the world, especially in sectors like cybersecurity, software engineering, biotech, and fintech. But hiring in Israel also means understanding a legal framework that includes:
Mandatory pension contributions
National insurance (Bituach Leumi)
Local tax codes and deductions
Paid leave entitlements (including maternity and military leave)
Severance obligations
Using an EOR service lets your business stay fully compliant with these regulations while enjoying the benefits of a local workforce.
Key Benefits of EOR Services in Israel
✅ Faster Market Entry: You can begin operations in Israel within days instead of months. No need for entity registration, legal filings, or local accounting setup.
✅ Full Compliance with Israeli Labor Law: Avoid fines and legal complications by staying in line with employment rules, tax codes, and reporting requirements.
✅ Cost Savings: Setting up a legal entity in Israel is not only time-consuming but also expensive. An EOR eliminates the need for local infrastructure, ongoing legal consultations, and HR management.
✅ Focus on Core Business: While we handle payroll, benefits, and compliance, your internal teams can focus on growth, product development, and strategy.
✅ Flexibility in Hiring: Scale your team up or down depending on your project needs, without long-term legal obligations.
Use Cases: Who Should Consider EOR Services in Israel?
Tech startups looking to open a satellite team in Tel Aviv
Global companies testing product-market fit in the Israeli market
Enterprises building R&D departments in the region
Remote-first organizations wanting to legally employ Israeli citizens without opening a branch
Why Work With Us?
With deep knowledge of the Israeli market and a global infrastructure, SGF Global provides reliable, efficient, and compliant EOR solutions for companies entering or expanding their footprint in Israel. Our local HR and legal experts ensure that your employees are onboarded seamlessly and your company remains protected from compliance risks.
We act as your trusted partner on the ground, offering personalized support, accurate payroll services, and peace of mind that every box is checked.
Entering the Israeli market doesn’t need to be complex. With our Employer of Record services, your business can hire quickly, stay compliant, and operate confidently, all without opening a local entity. Whether you’re hiring one engineer or building an entire team, we’re here to help you make it happen.
Ready to hire in Israel without setting up a legal entity?