The topic of maternity and maternity leave often raises many questions for self-employed individuals. It is extremely important to gather detailed information in advance to avoid unpleasant surprises. In this article, you’ll learn whether you, as a self-employed individual, are entitled to maternity benefits. We’ll also use a simple example to explain how much the maternity allowance is, when you become eligible, how long you’re entitled to it, and where you can claim it.
Who is eligible for maternity benefits?
Women who are employed and receive a monthly salary are entitled to maternity benefits—regardless of whether they work full-time or on a regular part-time basis. This also applies if they work for their husband’s or family’s business in exchange for cash wages. Recipients of daily benefits are also entitled to maternity benefits. This is particularly important for individuals who are unemployed or unable to work due to illness, accident, or disability. Housewives are not covered by maternity protection, as they are not in an employment relationship.
Are self-employed individuals entitled to maternity benefits?
Self-employed individuals are entitled to maternity benefits provided that they paid AHV contributions during the nine months prior to the child’s birth and were therefore covered by mandatory insurance.
This period is shortened in the event of a premature birth. For example, if the birth occurs before the seventh month of pregnancy, you need only have been insured for six months. If the birth occurs before the eighth month of pregnancy, the requirement is only seven months. However, during the nine months immediately preceding the birth, you must have been employed for at least five months.
How much in maternity benefits do self-employed individuals receive, and how are they calculated?
Unlike income earned from employment, maternity benefits are calculated based on net income. Maternity benefits for self-employed individuals amount to 80% of the average net income prior to the birth, but not more than 220 francs.
In the example below, we assume an annual net income of 54,000 francs. We take 80% of this amount and divide it by 360 days, which equals CHF 120 per day. The resulting daily benefit amount is then multiplied by 98 (the number of days of maternity leave). In this example, the maternity allowance for a standard duration is therefore CHF 11,760.
| Annual income subject to AHV contributions (prior to the birth) | CHF 54’000 |
| Compensation calculation: 80% of CHF 54,000 / 360 days | CHF 120 |
| Compensation for a standard duration of 98 days | CHF 11’760 |
Please note: Net income also represents taxable income. This is often kept as low as possible by deducting business expenses and other tax-deductible costs. As a result, self-employed individuals pay less in taxes and Social Security contributions than employees with the same gross income. In this case, however, this also means a lower maternity allowance, since the maternity allowance is calculated based on annual net income.
How long do self-employed women receive maternity benefits?
Entitlement to maternity benefits ends on the 98th day after it begins and can still be claimed up to five years after the end of the 14-week maternity leave. If the mother returns to work early, before the 98-day period expires, her entitlement ends accordingly.
Under certain circumstances, maternity benefits may be extended. For example, if the child must remain in the hospital after birth for more than 14 days, maternity benefits will be extended for the same period, up to a maximum of 56 days. In addition, the application form must clearly indicate the duration of the hospital stay, a medical certificate must be attached, and proof must be provided that the applicant will resume gainful employment after maternity leave.
How do you apply for maternity benefits as a self-employed person, and how are they paid out?
Unlike employees, self-employed individuals must file their claims directly with their respective compensation fund. Female employees do not do this directly, but rather through their employer.
Contributions to the AHV/IV and EO must also be paid on maternity benefits, as they count as income. Payment is made at the end of the month, unless the maternity allowance is less than 200 francs per month. In that case, payment would not be made until the end of maternity leave.
What should self-employed women keep in mind when they become mothers?
The most common mistake is calculating maternity benefits based on gross annual income rather than net annual income. Thus, the period before pregnancy and childbirth is decisive in determining the amount of maternity benefits.
Another factor that can have a significant impact is unpaid leave. Unpaid leave reduces annual income, and maternity benefits are often lower as a result.
Pregnancy often brings unexpected surprises and cannot be planned in advance. Complications can never be ruled out, and every expectant mother’s situation is unique. How long it is possible to work during pregnancy depends on many factors and should never be relied upon as a financial safety net. It is therefore advisable to create a financial plan before you plan to become pregnant so that you are prepared for any eventualities.
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