Accessing Israeli Benefits While Working for US Companies: The EOR Approach

Introduction

In today’s globalized workforce, many Israeli professionals find themselves working for US companies while residing in Israel. This arrangement can be beneficial for both parties, but it often raises questions about accessing Israeli benefits and complying with local labor laws. Enter the Employer of Record (EOR) approach – a solution that allows workers to enjoy the best of both worlds. This article explores how EORs can help Israeli workers access local benefits while employed by US companies, with a focus on the practical applications and advantages for the working class.

Understanding the EOR Approach

An Employer of Record (EOR) is a third-party organization that takes on the legal and administrative responsibilities of employing workers on behalf of another company. In the context of Israeli workers employed by US companies, an EOR based in Israel can serve as the official employer, ensuring compliance with local laws and providing access to Israeli benefits.

Key Benefits of the EOR Approach

• Compliance with Israeli labor laws
• Access to Israeli social benefits
• Simplified payroll and tax management
• Protection of worker rights
• Streamlined hiring process for US companies

Accessing Israeli Benefits Through an EOR

1. Social Security (Bituach Leumi)

One of the most significant advantages of the EOR approach is access to Israel’s social security system. Through an EOR, workers can contribute to and benefit from:

• Old-age pension
• Disability insurance
• Unemployment benefits
• Maternity and paternity leave
• Work injury compensation

2. Health Insurance

EORs ensure that workers are enrolled in Israel’s national health insurance program, providing access to comprehensive healthcare services through one of the country’s four health maintenance organizations (HMOs).

3. Pension Plans

Israeli law mandates employer contributions to pension plans. Through an EOR, workers can benefit from:

• Employer contributions to pension funds
• Tax benefits on pension savings
• Long-term financial security

4. Vacation and Sick Leave

EORs ensure compliance with Israeli labor laws regarding paid time off, including:

• Minimum 12 days of paid vacation annually (increasing with tenure)
• Paid sick leave as per Israeli regulations
• Holiday pay for official Israeli holidays

Practical Applications of EOR Services

1. Seamless Onboarding

EORs simplify the hiring process for US companies, handling all necessary paperwork and ensuring compliance with Israeli employment laws. This allows workers to start their jobs quickly and efficiently.

2. Payroll Management

EORs manage payroll, ensuring that workers receive their salaries in Israeli Shekels and that all necessary deductions and contributions are made according to local regulations.

3. Tax Compliance

EORs handle income tax withholding and reporting, ensuring that workers remain compliant with Israeli tax laws while simplifying their tax obligations.

4. Work Permits and Visas

For non-Israeli citizens working in Israel, EORs can assist with obtaining necessary work permits and visas, ensuring legal employment status.

5. Conflict Resolution

In case of disputes or misunderstandings, EORs can act as intermediaries between workers and US employers, helping to resolve issues in accordance with Israeli labor laws.

Conclusion

The EOR approach offers a valuable solution for Israeli workers employed by US companies, providing access to local benefits while ensuring compliance with Israeli labor laws. This arrangement allows the working class to enjoy the advantages of international employment without sacrificing the protections and benefits afforded by the Israeli system. As the global workforce continues to evolve, EOR services are likely to play an increasingly important role in facilitating cross-border employment relationships, benefiting both workers and employers alike.