Self-Employed Persons Can Also Receive Maternity Benefits: What You Need to Know
Individuals applying the special tax regime for the self-employed are participants in the compulsory social insurance system and are entitled to social payments in case of loss of income due to pregnancy and childbirth, as well as for the care of a child up to the age of one and a half years. The Ministry of Labour has explained the eligibility requirements, calculation procedure and applicable restrictions for self-employed persons.
What Social Payments Are Available to Self-Employed Persons?
Self-employed persons are entitled to two types of social payment. The first is assigned in case of loss of income due to pregnancy and childbirth. The second is paid in case of loss of income in connection with the care of a child up to the age of one and a half years.
The procedure for assigning these payments to self-employed persons is the same as for other participants in the compulsory social insurance system.
What Is Required to Receive a Social Payment for Pregnancy and Childbirth?
To apply for a social payment in case of loss of income due to pregnancy and childbirth, the applicant must submit an application and a temporary disability certificate.
Additional information is obtained by state bodies through state digital systems. This includes information concerning the applicant’s identity document, bank account and temporary disability certificate, as well as information on registration as an individual entrepreneur and the status of settlements with the state budget and in respect of social payments.
After the birth of a child, an SMS message is sent from the 1414 Contact Centre informing the recipient of their entitlement to a social payment for childcare. If the recipient responds positively, the application for the payment is processed proactively.
How Much Do Self-Employed Persons Pay into the Social Insurance System?
For individuals applying the special tax regime for the self-employed, social contributions are set at 1% of the income received during the reporting month from activities carried out under this regime.
However, the monthly income used to calculate social contributions must not exceed seven times the minimum wage established for the relevant financial year or the threshold established by the Tax Code for the application of the special tax regime for the self-employed.
How Is the Social Payment Calculated?
For self-employed persons, the monthly income used to calculate social payments is determined not directly on the basis of declared earnings, but on the basis of the social contributions actually received.
For each month, the Fund determines the income by dividing the amount of social contributions actually received by the 5% social contribution rate and multiplying the resulting figure by 100%.
For the social payment in case of loss of income due to pregnancy and childbirth, the average monthly income is calculated for the last 12 calendar months preceding the month in which entitlement to the payment arose. The resulting amount is multiplied by the coefficient corresponding to the number of days of incapacity for work, which is determined by dividing the number of days specified in the temporary disability certificate by 30 calendar days.
For the social payment for childcare, the average monthly income is calculated for the last 24 calendar months and multiplied by the income replacement coefficient of 0.4, or 40%.
The social payment for pregnancy and childbirth is subject to a maximum limit. It may not exceed seven times the minimum wage multiplied by the applicable coefficient corresponding to the number of days of incapacity for work. The social payment for childcare may not exceed 40% of seven times the minimum wage applicable on the date entitlement to the payment arises.
Can a Self-Employed Person Continue Working While Receiving the Payment?
Entitlement to the social payment for childcare is conditional upon the loss of income and the actual provision of care for the child. Therefore, a self-employed person must suspend their entrepreneurial activity while receiving this payment.
If the recipient continues to engage in employment or entrepreneurial activity and receives income from it, there is no loss of income. In such circumstances, the person must choose between receiving income from their activity and receiving the social payment for childcare.
If circumstances change, the recipient must notify the relevant branch of the State Corporation “Government for Citizens” within ten working days. The payment is terminated from the first day of the month following the month in which the relevant application is submitted.
Can the Fund Verify Information Provided by a Self-Employed Person?
The State Social Insurance Fund is entitled to verify the accuracy of documents and information required for the assignment of social payments.
A verification may be conducted, for example, where social contributions were paid late or not paid in full; where the amount of social contributions does not correspond to the declared income; where discrepancies are identified in state digital systems; or where social contributions for the same period were received from several payers registered and operating in different regions.
Where a verification is conducted, the electronic case file is reviewed within 30 working days. Information on social contributions and compulsory pension contributions, as well as tax reporting data, may be used to verify income.
What Happens If an Excess Amount Is Paid?
Recipients of social payments are required to provide complete and accurate information. If a recipient has been paid an amount in excess of their entitlement, the excess amount must be repaid voluntarily.
If the recipient refuses to repay the amount, it may be recovered through court proceedings on the basis of a court decision that has entered into legal force.
Thus, the application of the special tax regime for the self-employed does not deprive a person of the right to maternity-related social payments. The key requirements are participation in the compulsory social insurance system and the payment of social contributions. At the same time, in order to receive the social payment for childcare, the recipient must actually cease their activity for the period during which the payment is received.
Source: https://finratings.kz/news/16198-samozaniatye-tozhe-mogut-poluchit-dekretnye-chto-dlia-etogo-nuzhno/