PEO Services in Israel — Professional Employer Organization

Co-employment HR solutions for companies with a local Israeli entity.
Trusted by the Best. Worldwide.

Human Impact’s PEO service acts as your co-employer in Israel — taking full responsibility for payroll, benefits, and compliance while you retain day-to-day management of your team.

Definition

What Is a Professional Employer Organization (PEO)?

A PEO (Professional Employer Organization) enters into a co-employment arrangement with your company. Unlike EOR, PEO is suited for companies that already have a registered Israeli entity but want to outsource the administrative and compliance burden of employment. Human Impact becomes the employer of record for HR and payroll purposes while you manage daily operations.

Process

How Our PEO Service Works

Transitioning your employees to a PEO arrangement is smooth and transparent — typically completed within 1–2 weeks.

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Needs Assessment

We review your current employment setup, identify compliance gaps, and propose a tailored PEO structure.

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Co-Employment Agreement

We sign a Master Services Agreement defining roles, responsibilities, and service levels.

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Employee Transition

Employees are transitioned to the PEO arrangement with no disruption to their work or benefits.

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Ongoing Management

We run payroll, manage benefits, handle compliance reporting, and provide monthly HR reports.

Service Scope

What's Included in Our PEO Service

Every engagement includes the full service lifecycle.

✓ Full Payroll Administration
✓ Tax Filing & Compliance
✓ Bituach Leumi Management
✓ Pension & Provident Funds
✓ Employee Benefits Management
✓ Annual Leave Tracking
✓ Sick Day & Disability Claims
✓ HR Policy & Handbook Support
✓ Labor Law Advisory
✓ Monthly HR Analytics Reports
Key Facts

PEO by the Numbers

7+

Years Operating in Israel

50+

PEO Client Companies

100%

Compliance Rate

→ PEO clients report 40% reduction in HR administrative time on average.
→ Human Impact handles all employer-side tax filings with the Israeli Tax Authority.
→ Our PEO structure is compatible with all major Israeli pension and study fund providers.
→ Dedicated HR business partner assigned to every PEO client.
→ Full integration with leading Israeli payroll and accounting software.
→ Monthly compliance reports delivered in both Hebrew and English.
Use Cases

Who Benefits from PEO?

PEO is ideal for companies that are already established in Israel but want to reduce HR overhead and ensure full compliance.

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Israeli Subsidiaries of Global Companies

Global HQs managing an Israeli entity benefit from a local HR expert handling all employment matters.

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Growing Israeli Companies

Fast-growing companies that need professional HR infrastructure without building an internal team.

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M&A and Integration Scenarios

Companies going through mergers or acquisitions that need interim HR management.

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Tech & Innovation Companies

R&D-focused companies that want HR complexity handled while they focus on their product.

Why Human Impact

Why Choose Human Impact as Your PEO?

We combine deep Israeli labor law expertise with a personal, relationship-driven service model.

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Israel-Specialist PEO

Unlike global PEO platforms, we focus exclusively on Israel — giving you deeper expertise and faster response times.

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Dedicated HR Business Partner

Your named contact knows your company, your employees, and the Israeli market inside and out.

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Proactive Compliance

We monitor regulatory changes and update your employment practices before issues arise.

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Cost Reduction

Eliminate the need for in-house HR staff while maintaining enterprise-grade compliance.

FAQ

Frequently Asked Questions — PEO Israel

EOR is used when you have no Israeli entity — the EOR provider is the sole employer. PEO is a co-employment arrangement for companies that already have a local entity but want to outsource HR and payroll administration.

Yes. PEO is designed for companies with an existing Israeli entity. If you do not have one, our EOR service is the right solution.

Yes — PEO involves a co-employment relationship that is disclosed to employees. It does not affect their day-to-day experience but formalizes HR administration.

Yes. New hires can be seamlessly onboarded into the PEO arrangement. We handle the full employment documentation and systems setup.

Existing contracts are reviewed and may be amended to reflect the co-employment structure. We ensure continuity of all existing terms and entitlements.

You fund payroll to us on a set date each month. We then distribute employee salaries, handle all deductions, and file tax reports with the Israeli tax authority.

For most companies, PEO reduces total cost because it eliminates the need for an in-house HR department while reducing compliance risk and associated penalties.

The transition typically takes 1–2 weeks and is designed to be seamless for employees. We manage all the administrative work.

Ready to Simplify HR in Israel?

Talk to our PEO specialists and find out how we can reduce your HR burden.