Tax Treatment
Temporary workers employed through a staffing agency are full employees of the agency. The agency is responsible for all employer obligations: tax withholding, NI contributions, pension, and severance. The client company pays the agency a fee that includes the worker's salary plus the agency's markup and overheads.
Equal Pay Requirement
After 9 months of continuous placement with the same client, a temporary worker is entitled to equal pay with the client's direct employees in comparable positions. This has tax implications as the increased salary affects all deduction calculations.
בסיס חוקי
- Employment of Workers by Manpower Contractors Law 5756-1996
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.