Becoming a surrogate is a big decision, and it’s completely normal to look at the time commitment and wonder, "Will I lose money every time I have a doctor's appointment?" You are already giving your time, energy, and body to help a family; you shouldn't have to stress about your own bills or dip into your savings just because you're helping someone else grow their family.
That’s exactly what your surrogacy contract is designed for. It acts as a financial safety net to reimburse you if you miss work for the pregnancy—whether it's a routine check-up or an unexpected complication. In this guide, we’ll explore how lost wages, caps, and PTO work so you can start your journey with total confidence.
Your financial security is a priority. If you have specific questions about your job or income type, our specialists are ready to listen and help you understand your options.
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What Are "Lost Wages" in a Surrogacy Agreement?
Think of the "lost wages" section of your contract as a reimbursement, not a bonus. The goal isn't to pay you extra, but to make sure you break even. If you have to miss a shift to go to a screening or recover from birth, the intended parents cover the income you would have earned if you’d been at work.
It helps to remember that surrogacy isn’t a typical job, and the intended parents aren't your employers. You’re partners in a shared journey. This provision protects that partnership—so that your generosity doesn't end up costing you your own paycheck or draining your savings account. By covering these costs, the intended parents are simply restoring you to the financial position you would have been in had you not missed work.
When Can You Claim Lost Wages?
To prevent confusion later, your contract will list specific "reimbursable events." These are the agreed-upon times when missing work is expected and covered. While every journey is a little different, you’re typically covered for:
- Medical Screening: This serves as the initial "green light" for the process. It usually involves a day or two of travel to the intended parents' IVF clinic for your surrogate medical screening. Since this happens before you are pregnant, it is often the first time you will utilize the lost wages provision.
- Embryo Transfer: This is a big one, both medically and emotionally. You are typically reimbursed for travel days, the embryo transfer process itself, and any bedrest the doctor orders right after the transfer (usually about 3–5 days in total). We want you to focus on relaxing and the potential excitement of pregnancy, not worrying about the hours you're missing at work.
- Prenatal Care: This includes routine monitoring, ultrasounds, and blood work. We always suggest scheduling these early or late in the day to minimize disruption to your schedule, but we know life doesn't always work that way. If you have to miss work hours for these visits because the clinic only has mid-day availability, you should be paid for them.
- Invasive Procedures: In the rare event you need a medically necessary procedure, like an amniocentesis or D&C, your recovery time is fully covered. These are physically demanding events, and your financial stability should be the last thing on your mind while you heal.
- Bedrest: If a doctor says you need to stop working due to complications—whether it’s strict bedrest or just "take it easy" restrictions that prevent you from doing your specific job—this provision kicks in to replace your regular income for the duration of the doctor's order.
- Postpartum Recovery: Taking time to heal after delivery is non-negotiable. Contracts typically cover 6–8 weeks of lost wages, depending on whether you had a vaginal delivery or a C-section and what your doctor recommends. This ensures you have the time for postpartum recovery and bonding with your own family before returning to the workforce.
Proving Your Income
Documenting your income for these protections is simple; you just need to show what you currently earn so the legal team can calculate an accurate reimbursement rate. During the contract phase, your attorney will usually ask for:
- Recent Pay Stubs: Usually from the last two or three months, just to show your hours and earnings are consistent. This establishes your "baseline" income.
- Employer Verification: A simple letter from your employer confirming your hourly rate, typical schedule, and employment status. This helps verify that the pay stubs reflect your current reality.
- Tax Documents: W-2s or 1099s from the previous year to verify your long-term income stability and ensure the contract reflects an accurate annual average.
If your income varies—perhaps you work in the gig economy, operate as a real estate agent whose income depends on closings, or change jobs during pregnancy—proving income works a little differently. In these cases, your attorney will help you negotiate a "fair average" daily or weekly rate. They might look at your tax returns or an average of your deposits over the last 6–12 months to determine what a "typical" day looks like for you. This way, you don't get short-changed just because you happened to miss work during a particularly busy week, and the parents don't overpay if you miss a slow week.
Understanding the "Cap" on Lost Wages
Once your rate is set, the next step is budgeting. At this stage, you might see a 'cap' in the contract—a limit you and the parents agree on (like $10,000 or $15,000) for missed work over the course of the journey.
Why Is There a Cap?
It’s mostly about predictability for the intended parents. They have a lot of costs to juggle—IVF, agency fees, medical bills—and they need to know the maximum amount they might need to set aside for your time off. It helps them verify the escrow account is fully funded before you become a paid surrogate, which ultimately protects you by ensuring the money is actually there when you need it.
What If You Go Over the Cap?
Having an experienced surrogacy agency in your corner really matters here. A strong contract usually separates routine lost wages (like appointments and transfer) from long-term lost wages (like strict bedrest due to complications).
If you run into "extraordinary circumstances"—like needing months of bedrest that would blow past that cap—we advocate for language in your contract that allows for renegotiation or extra support. We make sure you’re matched with parents whose budget can handle the unexpected, so you aren’t left in a bind if a doctor orders you to stay in bed for eight weeks.
Net Pay vs. Gross Pay: What Do You Get?
Here’s a detail that surprises some people: the amount you receive for a day off is usually based on your Net Pay (what hits your bank account) rather than your Gross Pay (what you earn before taxes).
The Standard: Net Pay Reimbursement
The logic here is pretty simple: these payments are meant to replace the actual cash you use to pay bills, buy groceries, and cover rent.
For example, if you earn $200 a day but only take home $160 after taxes, your actual financial "loss" for missing work is $160. If the intended parents paid you the full $200, you’d technically be making a profit by staying home, since reimbursements generally aren’t taxed as income (though, definitely check with a tax pro on that). Sticking to Net Pay keeps things neutral and fair, ensuring that you are financially identical whether you went to work or went to the clinic.
Self-Employed Surrogates
If you run your own business or freelance, figuring out "Net Pay" takes a bit more math since you don't have standard withholdings. Your attorney will lean heavily on your tax returns to find a daily rate that makes sense. You might also need to show that your business actually lost revenue because you were physically away (like a hair stylist missing clients), rather than just passive income fluctuations that occurred while you were gone.
Bedrest Compensation: Protection for the Unexpected
Routine appointments are easy to plan for, but the "what ifs" can be scary. A common worry is, "What if I get put on bedrest for four months?"
The bedrest provision solves this concern completely. If a doctor certifies that you can’t work due to complications, your contract ensures your income is replaced so your household keeps running smoothly.
How Bedrest Pay Works (The "Waterfall" Structure)
Contracts usually use a "waterfall" approach to keep this affordable for parents while protecting your pay:
- Disability Insurance First: You’ll likely apply for Short Term Disability (STD) or state disability benefits first. This usually covers about 60–70% of your pay. This is the first "bucket" of money used to replace your income.
- Gap Payments: The intended parents then pay the "gap"—the difference between that disability check and your normal take-home pay. For example, if disability pays $600/week and your take-home is $1,000/week, the parents pay the remaining $400.
- The Waiting Period: Most disability policies make you wait a week (the "elimination period") before they start paying. Your contract stipulates that the intended parents cover 100% of your lost wages during that week, so you never miss a check while waiting for the insurance company to process your claim.
It sounds complex, but it’s just a way to make sure you get your full income without draining the parents' immediate cash funds. We help manage this process so you aren't stuck fighting insurance paperwork alone.
Childcare Reimbursement
Not every surrogate works a 9-to-5, but that doesn't mean your time isn't valuable. If you stay home with your kids or work part-time, you definitely have "lost time." You shouldn't have to pay out of pocket for a sitter just to get to an appointment.
Most contracts include a childcare allowance for the times you’re away—doctor visits, the embryo transfer trip, or even recovery time after birth. This ensures that your children are cared for while you are caring for the pregnancy.
Contracts often specify that this is for professional care or non-relatives to keep the transaction clear and distinct. If you usually rely on your mom or sister to watch the kids, let us know. We can often discuss a flat weekly stipend that might work better for your situation than trying to reimburse hourly babysitting invoices from a family member.
The "PTO First" Debate
Finally, let’s talk about your vacation days. You’ve earned them, so do you have to use them for surrogacy?
Intended parents might ask if you’re willing to use some sick time or PTO for appointments to help save on costs. That’s a fair question, but we believe you have the right to protect your family time. Surrogacy is a marathon, and you will need your vacation days to rest and recharge with your own family.
Usually, we see a compromise. You might agree to use your sick days for doctor visits (since medical needs are exactly what sick days are for), but "freeze" your vacation days so you don't have to burn them on surrogacy. Some surrogates also negotiate for the "cash value"—taking an unpaid day off work and getting reimbursed by the parents for that day's wages. This allows you to essentially "buy back" your time, banking your PTO for a post-birth vacation when you can truly enjoy it.
Protect Your Financial Future
Surrogacy is a huge commitment, and you deserve to feel secure while you’re doing it. At American Surrogacy, our process is built to protect you by:
- Thoughtful Matching: We match you with parents who are financially prepared to meet your needs.
- Legal Advocacy: We connect you with independent attorneys who specialize in this stuff to write your contract.
- Secure Payments: We handle everything through secure, third-party escrow, so you never have to have an awkward money conversation with the parents.
We are here to support you at every step.