The Compliance Problem for Remote Workers
When you work in Israel for a foreign employer that has no Israeli entity, you face a compliance challenge: who runs your payroll, deducts your taxes, pays your ביטוח לאומי (Bituach Leumi), and ensures your pension contributions land in the right places? Your foreign employer can't do it — they don't have an Israeli payroll system. You could do it yourself as an Osek Patur or עוסק מורשה (Osek Murshe) — or you can outsource the whole thing to an Atzmai Sachir company.
What an Atzmai Sachir Company Does
"Atzmai Sachir" literally means "self-employed employee" — a contradiction in terms that captures exactly what the service provides. These companies act as your employer on paper in Israel, while you continue to work for your actual employer abroad.
The service flow works like this:
- Your foreign employer pays the Atzmai Sachir company for your services (usually in USD or EUR, converted to NIS).
- The Atzmai Sachir company issues the VAT invoice to your employer on your behalf.
- They calculate and deduct Israeli income tax, Bituach Leumi (employer and employee shares), health levy, pension contributions, and Keren Hishtalmut.
- They remit everything to the relevant authorities and savings funds.
- You receive a monthly payslip showing all deductions, and your net salary lands in your Israeli bank account — just like a regular employee.
The result: you get a proper Israeli payslip, your קרן השתלמות (Keren Hishtalmut) and pension accumulate, you have Bituach Leumi coverage, and you have zero compliance administration to worry about.
What It Costs
Atzmai Sachir companies typically charge 3-5% of your gross invoice as a service fee. On a monthly gross of 30,000 NIS, that's 900-1,500 NIS per month — roughly equivalent to hiring a bookkeeper plus accountant separately, but with significantly less personal time investment.
Some companies charge a flat monthly fee instead of a percentage. For higher earners, the flat fee can be more economical. Get quotes from two or three providers before committing — the market is competitive.
What You Still Need to Handle
Using an Atzmai Sachir service simplifies your life significantly, but doesn't eliminate all obligations:
- Annual income tax return: If your total annual income triggers a mandatory filing requirement, you still need to file a Doch Shenati. The Atzmai Sachir company will provide you with the tax documents you need.
- Foreign income reporting: If you also have foreign income (investments, rental abroad, etc.), that remains your responsibility to report.
- Your savings accounts: You choose your pension fund and Keren Hishtalmut provider — the Atzmai Sachir company sends contributions to wherever you direct them.
Atzmai Sachir vs Self-Registered: Which Is Better?
Use an Atzmai Sachir service if:
- You have one or two foreign employers paying you
- You prefer zero compliance administration
- You value having a proper payslip and employee-style documentation
- Your income is high enough that the 3-5% fee is worth the peace of mind
Register as Osek Murshe directly if:
- You have multiple clients and issue many invoices per month
- You have significant business expenses to reclaim VAT on
- You're comfortable managing quarterly filings or have a good bookkeeper
- You prefer maximum control and lower ongoing costs at higher income levels