IT freelancing and maternity leave: a practical guide

Do you work as a freelance IT expert and you’re about to go on maternity leave? Well congratulations! And we have one more question for you: are you sure you know everything you need to know about how maternity leave works? What must a freelancer do to make the most of all opportunities and ensure financial stability in the first months of motherhood? We put together a few basic points that are worth knowing so you can prepare ahead of time. And everything we’ve written here may also be useful for male freelancers.

While a freelancer doesn’t need to plan ahead for certain types of taxes and accounting obligations, with maternity leave you may risk losses if you delay. You have to start taking the necessary steps in time to prevent losing something you are entitled to. This is why we’ve put together 5 basic facts that you should know as a freelance IT specialist, ideally at least a year before your planned pregnancy.

Three facts to start with 

First of all, let’s clarify what is and what isn’t maternity pay and take a look at the facts: 

• The state pays us maternity leave on the basis of our paid sickness insurance. It is basically compensation for lost income. 
• Maternity pay starts 6 weeks before the due date and continues for 28 weeks after the birth.  
• Maternity pay is followed by the parental benefit, but this is a matter for the employment office and almost everyone is automatically entitled it – freelancers and employees alike. We’ll talk about it in another article. 

What should you take care of and when? 

The first step to getting maternity pay is signing up for voluntary sickness insurance. You have to do so 12 months before you start your maternity leave (ML), which means you should have it sorted out at least 3 months before you get pregnant. 

Another condition is that you have to have worked and paid for at least 270 days of sickness insurance over the past 2 years, which is about 9 months, when you go on maternity leave. At least 180 days (i.e. half a year) must have been paid in the last year before your maternity leave starts. You also have to either have sickness insurance or be in the ‘protection period’ when you go on maternity leave. When you’re employed and you become pregnant, the company would pay your insurance premium during the protection period. This period is up to 180 days, depending on the length of your previous employment. 

Maternity pay 

The amount of the maternity pay depends on your monthly health sickness payments. The minimum amount in 2024 is CZK 216 per month. There is also a maximum monthly limit for the self-employed that depends on their income. 

If you chose the flat-rate tax, the amount depends on your current income level: 

• level 1: CZK 410 per month 
• level 2: CZK 758 per month 
• level 3: CZK 1,159 per month 

It’s crucial to regularly file a tax return with overviews for the CSSA to be sure you don’t owe the state anything and that it has you on file. You can find the exact amount of sickness insurance payments on the other side of the overview form. This way, you can make sure you’re paying the right amount and that you’ll enjoy maternity pay to the fullest.  

Self-employed x full-time employee: who has it better? 

Let’s compare the difference in maternity pay for a self-employed person and a full-time employee with comparable incomes. 

Self-employed CZK 80 000 per month: 

• She paid sickness insurance in the amount of CZK 420/month for 12 months before going on maternity leave. 
• She was entitled to a total maternity pay of CZK 90,000, which is about CZK 14,000/month. 

Full-time employee with a gross pay of CZK 80 000 per month: 

• Her total maternity pay is CZK 265,000 per month, which is about CZK 41 000/month. 

This comparison shows that you would be entitled to significantly higher maternity pay as a fully employed person with the same income as a self-employed person. This is why it is especially important for a freelancer to be prepared and plan out her finances. Another option is to switch to full-time employment if you can. 

How to apply for maternity pay 

Your gynaecologist will issue a request for maternity pay no later than 1-2 months before the due date. 

You as a self-employed person have to do the following: 

• Fill out section B in the form. 
• Specify the last day of work as a self-employed person. 
• Specify the day that you wish to go on maternity leave (ML). The law stipulates that you must start your maternity leave 6-8 weeks before your due date. You can also start later, but you will lose the maternity pay for these days. 
• Specify your preferred method of payment and provide your bank account number. 

Send the signed form to the local branch of the CSSA, or via data box. 

Can I work while on maternity leave? 

You are not allowed to work while on maternity leave, that is a fundamental rule. You may only conclude a work performance agreement (DPP) or agreement to perform work (DPČ), and your earnings under these agreements will not affect your maternity pay. 

But you don’t need to terminate or suspend your business licence, there are other ways to do it. A person working with you, such as your partner, can take over your business while you’re on maternity leave. However, this will result in further obligations such as reporting your partner to the tax office, health insurance company and social security administration and including these changes in the tax return. 

One of the advantages of maternity leave is that you do not have to pay social and health insurance or flat-rate tax for its duration. You will only be required to pay these when you go on parental leave. 

And what about men? 

You may not have known that even male freelancers are entitled to maternity leave. In addition to the first 6 weeks after childbirth, when only the mother is entitled to maternity pay, the child’s father or the mother’s husband is also entitled to the benefit. However, he must meet the same insurance conditions as the woman who gave birth (sickness insurance when the maternity pay starts, 270 days of sickness insurance in the last two years before the benefit is paid). He must also conclude a written agreement with the woman/mother stating that he will care for the child. The agreement must include the day from which the father will care for the child, the date of birth and the mother’s certified signature. 

Useful links 

There are three more links that you may find useful: 

• Application form for voluntary participation in sickness insurance for the self-employed
• Calculator for benefits in 2024 
• Smart tips on IG account Finance v mateřství

Finally, the most important thing 

If you don’t understand everything 100% that’s okay! Do you know that as a Titans contractor we will give you advice for your own personal taxes and levies associated with our cooperation as part of our benefits? Just ask us! We’re here for you and we want to make the life of a freelance IT specialist easier! With us, taxes and levies don’t have to be confusing even in 2024.