You may have seen ads for Employer of Record services that operate internationally and serve Israeli employees as well as employees around the globe. While these companies can certainly fulfill their purpose, there are a number of advantages to using an Israeli EOR instead of a global EOR.
Deep understanding of Israeli law
An Israeli EOR will, obviously, have a better understanding of Israeli labor law, since this is their specialty. There are many laws in Israel relating to taxes, Bituach Leumi and VAT which need to be strictly adhered to so that the employee of the EOR fulfills his obligations to the government. If special circumstances arise, a deep knowledge and understanding of Israeli law might become necessary to ensure compliance.
Laws and regulations are subject to change, so having Hebrew speakers on hand who are experts in labor law ensure that the EOR is up-to-date and not scrambling to solve problems after they have already occurred.
Relationships with local authorities
A good Israeli EOR will have long-standing relationships with local authorities in the various government offices. Their accountants, bookkeepers and payroll specialists can expedite processes and get advice directly from government sources. They will also have connections with insurance agents for pension planning and may be able to provide business consulting and other services.
Cost-effectiveness
Global EORs often subcontract local EORs for specific countries, which can result in higher fees due to added layers of management. An Israeli EOR will price their services in shekels and there’s no extra cut for the global offices.
Shared goals
An Israeli EOR isn’t in it just for the money. Its mission is to help olim and Israelis make a living in Israel. When a proper salary is ensured, people can consider making aliyah and will have the ability to stay here permanently. They share the goals of their clients, who want to live a financially comfortable life in Israel, in addition to all the other advantages of living in the Jewish state.
For more information, read How to Choose an Employer of Record Service.