There is a myriad of reasons to embrace global hiring. You gain access to a fresh set of skills, perspective, and breadth of experience. Hiring global talent can open your business to new markets and access a wider talent pool.
Israel, for example, is a popular outsourcing destination. If you take this route and decide to hire employees in Israel, it’s essential to make sure you adhere to local Israeli laws and regulations.
An Employer of Record (EOR) offers a simple and straightforward way to hire and pay global talent legally. It provides everything you need to compliantly hire and pay employees. Read on to learn all about hiring employees from Israel through an EOR.
Why Hire Talent in Israel?
Israel is home to a growing pool of highly talented professionals, particularly in tech. As the 7th largest startup ecosystem in the world, Israel has fostered a culture of technological innovation, and it’s growing. This can provide companies with access to workers who are creative, innovative, and willing to take risks.
Israeli work culture is highly collaborative and relationship oriented. Employees in Israel are open to sharing ideas and working together as a team. They prefer open, direct communication and work flexibly and creatively. If you’re looking to hire a team player, consider setting your sights on Israel.
Lastly, many Israelis are fluent in multiple languages, including English, Hebrew, and Arabic. This makes them valuable assets for companies that operate in international markets. Research has also proven that bilingualism in the workforce positively impacts problem-solving skills and is associated with higher levels of abstract thinking and IQ.
How Can I Legally Hire an Employee in Israel?
If you want to hire talent in Israel on your own, things can get complicated. Businesses must establish an entity based in Israel. The process can be a headache and is only worthwhile if you intend to practice business in Israel long-term.
EORs offer an easy, straightforward way to hire employees from Israel. An EOR, like Borderless, serves as a middleman and facilitates the processes involved in global hiring. EORs already have an entity in place that’s capable of compliantly hiring and paying talent.
What Does an EOR Do?
EORs ensure you maintain strict compliance with local laws and regulations in the countries you hire talent from. They remove the legal roadblocks involved in hiring globally so you can focus on growing your business. Hiring laws vary considerably around the world, and it’s critical to comply with them to avoid legal implications. EORs manage the following processes and ensure they’re fully compliant:
- Work visas and permits
- Employment contracts
- Onboarding
- Tax documentation and filing
- Payroll processing
- Employee benefits
- Intellectual property protection
- Termination
EORs handle all of the tedious administrative tasks associated with these processes. They generate locally compliant employment contracts, collect and file locally compliant tax documentation, and much more.
Employee Insurance and Benefits
It’s always important to stay competitive, especially in a tight labor market. An EOR will help your company stand out from the crowd with a comprehensive benefits package, including generous health and wellness benefits, time off benefits, financial security benefits, and much more. It will ensure you provide your team members with what they’re legally entitled to and help you attract top talent with attractive offerings.
Vacations and Public Holidays
Employees in Israel are entitled to the following amount of paid time off work based on their years of service.
- Four years: 14 days
- Five years: 16 days
- Six years: 18 days
- Seven years: 21 days
- Eight years and onwards: One additional day per working year up to a period of leave of 28 days.
In addition to other forms of paid leave, such as sick and compassionate care, Israeli employees are entitled to take nine paid days off to observe national holidays.
- April 6: Passover
- April 12: Seventh Day of Passover
- April 26: Independence Day
- May 26: Feast of Shavuot
- September 16 - 17: Rosh Hashanah
- September 25: Yom Kippur
- September 30: First Day of Sukkot
- October 7: Simchat Torah
Taxes
Employers with an Israeli workforce must make monthly national insurance contributions based on a portion of each employee's income. The employer social security contribution rate is 3.55% on incomes up to ILS 7,122 and 7.6% on incomes up to ILS 47,465.
An EOR, like Borderless, will ensure you remit payroll taxes on time, every time. With the support and expertise of an EOR, social security contributions are simplified, and taxes are filed accurately and compliantly. So you can cut back on busy work and focus on growing your business.
What Are the Advantages of Going Through an EOR in Israel?
Working with an EOR comes with a range of benefits.
- Saves time and money
- Minimizes risks and avoids penalties related to non-compliance
- Cuts back on busy work
- Improves retention and talent attraction
- Expands your talent pool
- Keeps your employee's data safe and secure
- Keeps you up to date on hiring trends
These are just some of the ways an EOR can positively impact your business. Sign up with Borderless to explore what an EOR can do for you.
How Do I Choose the Right EOR for Me?
With so many EORs to choose from, it’s important to determine which one suits your individual needs. It’s helpful to keep the following considerations in mind.
- Expertise: Choose an EOR with a history of hiring and paying employees in the countries you want to hire from. Checking this box will help ensure your EOR of choice maintains compliance every step of the way.
- User experience: It’s important to provide your team with an easy-to-use, intuitive EOR platform packed with self-service options. The goal is to integrate it into your team's existing workflow stress-free.
- Support: Turn to EORs with a solid team of experts with a proven track record. Ensure that they’ll be there to lend you support when you need it.
- Security: Keeping your data safe and secure is paramount. This is especially true when working with a globally distributed team, leaving you more vulnerable to cyberattacks. Choose an EOR that has a robust set of data security standards and protocols.
Borderless: The Employer of Record your Company Needs
Broaden your horizons by hiring global talent. Use Borderless as your global employer of record to expand your talent base and get the most out of your hiring experience. Get in touch and book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
