The main reason that Israelis choose to freelance is for the increased flexibility. This starts with the ability to choose your own hours. The Israeli full-time work-week is 42 hours, which often translates into 8.6 hours Sunday-Thursday. For those looking for a work-life balance that leans more towards life, freelancing can be a good option. Of course, if your clients are reaching out to you during their work hours, including via WhatsApp, you may find yourself “on call” at hours you do not wish to be working. You need to decide what your boundaries are and stick firmly to them.
Another aspect of that flexibility is the option to work from home or from wherever you wish to work. There’s no requirement to be in an office at certain times and if the convenience of working from home outweighs the advantages of working elsewhere, you are free to choose to do so.
Freelancing also allows you to choose which clients you want to work with. You don’t need to take on clients who give you negative vibes or continue to work with people you don’t click with. This is sometimes easier said than done, since it’s tempting to work with anyone who wants to pay you, but you get to set your own policies and choose your clients.
Although you can negotiate your salary, there’s only so much wiggle room and ultimately, your salary is determined by your employer. When you freelance, you can set your own prices and decide how much to work to make the salary you want to take home. The caveats are that the market needs to bear your prices, you might not have enough customers and clients aren’t required to pay on time like an employer is. Yes, you set your prices, but you don’t have the stability of a regular paycheck that you can count on.
When you register as a freelancer in Israel, you sign up for lots of paperwork. You need to keep meticulous records of your revenue and expenses. You have to keep on top of payments to income tax, Bituach Leumi and, if you’re an Osek Murshe, VAT payments. All this paperwork is complex and chances are that you will want to hire an accountant or tax advisor to do some of it, which is an extra expense and doesn’t take all the responsibility off your shoulders.
Chasing after payment can be frustrating and time-consuming. Clients in Israel are allowed to delay payment for up to a few months and many will tell you in advance that this is their policy. Even clients who promised to pay right away don’t always do so, and you may have to expend time and energy on phone calls, WhatsApps and emails until you receive payment for work done.
If you’re an American citizen, the US government will charge you 15% Social Security as a self-employed person. Although this has the advantage of possibly making you eligible for payments after retirement, for many dual citizens this extra expense is too great to bear. Many Israeli-Americans solve this by becoming employees of Employer of Record services and avoiding freelance status while retaining the advantages of freelancing.
Freelancing comes with greater responsibility than employment but offers greater flexibility. What’s right for you is influenced by things like personality, personal circumstances, your stage of life and skills. You can try freelancing and see how it goes (and go back to employment if it’s not for you) or keep your day job and freelance as a side hustle. Or you can decide that a steady paycheck and lower pressure job is what’s right for you at this time, and stick to employment.