How Much Can You Get Paid To Be a Surrogate?
Uncover the full financial picture of being a surrogate, from earnings potential to included benefits and secure payment handling.
Becoming a surrogate involves a significant commitment, and understanding how compensation is structured provides clarity for those considering this journey. This article explores surrogate financial arrangements, including typical compensation ranges, influencing factors, and practical payment considerations.
Understanding Surrogate Compensation
Base surrogate compensation is the primary fee a surrogate receives for their commitment and the physical demands of carrying a pregnancy. For a first-time gestational surrogate, this compensation ranges from $45,000 to $65,000. Experienced surrogates, having successfully completed a previous journey, receive higher base compensation, often between $60,000 and $110,000.
This fee is disbursed in a structured manner, not as a single lump sum. Payments begin once pregnancy is confirmed, around six weeks, and continue in monthly installments throughout the pregnancy. The base compensation is entirely the surrogate’s to use as they choose.
Base compensation figures do not include additional allowances or expense reimbursements, which are handled separately. The total compensation package, including base pay and additional benefits, can range from $55,000 to over $110,000. This ensures the surrogate is compensated without incurring out-of-pocket costs related to the surrogacy.
Factors Affecting Compensation
Several elements influence the total compensation a surrogate receives. Geographic location plays a role, as compensation differs based on regional cost of living and demand for surrogates. Areas with higher living expenses or greater demand may offer more competitive compensation.
A surrogate’s prior experience is another factor. Surrogates who have successfully completed a previous journey command higher compensation due to their proven reliability and understanding of the process. This increased compensation acknowledges their track record and reduced need for extensive guidance.
The type of surrogacy arrangement also influences compensation. Gestational surrogacy, where the surrogate has no genetic link to the child, is the most common form and is associated with the compensation ranges discussed. Traditional surrogacy, which involves the surrogate’s genetic material, is less common and has different financial considerations.
Working with an agency or pursuing an independent match can also impact the financial arrangement. Agencies provide comprehensive support, including screening, matching, and managing financial aspects, reflected in their fees. Independent arrangements may appear to save on agency fees, but often require intended parents to manage all logistical and legal aspects, potentially leading to unforeseen costs or complexities.
Covered Expenses and Additional Allowances
Beyond base compensation, a surrogacy agreement outlines expenses and allowances covered for the surrogate. All medical expenses related to the pregnancy and surrogacy, not covered by the surrogate’s insurance, are paid for by the intended parents. This includes IVF procedures, prenatal care, hospital and delivery fees, and necessary medications.
Legal fees for drafting and reviewing the surrogacy agreement are also covered. This ensures both the surrogate and intended parents have independent legal counsel to protect their interests. Travel expenses for appointments, medical procedures, or delivery, if required, are reimbursed. This includes transportation, lodging, and a per diem for meals.
Compensation for lost wages is a common allowance, covering income a surrogate misses due to appointments, medical procedures, bed rest, or recovery after delivery. This reimbursement ensures the surrogate is not financially disadvantaged by their commitment. Lost wages may also extend to a companion who takes time off work to support the surrogate during appointments.
Additional allowances support the surrogate’s comfort and well-being. A maternity clothing allowance is provided once pregnancy progresses. Small stipends for miscellaneous expenses, such as childcare during appointments or housekeeping assistance in later pregnancy stages, are common. Agreements may include bonuses for specific milestones, like embryo transfer or carrying multiples.
Payment Structure and Legal Considerations
Compensation and allowances in a surrogacy arrangement are managed through a structured payment process. Funds for the surrogate are held in an escrow account, a secure, third-party managed account. An escrow agent oversees these funds, ensuring disbursement according to the surrogacy agreement terms. This mechanism provides financial security for the surrogate and transparency for intended parents.
A detailed payment schedule is established within the surrogacy agreement, outlining when and how payments will be made. This schedule includes an initial payment upon confirmed pregnancy, followed by monthly installments throughout the gestational period. Final payments are made post-delivery, after all agreement conditions have been met. This milestone-based approach ensures payments align with the surrogacy journey’s progress.
The surrogacy agreement is a legally binding contract formalizing all financial terms, including base compensation, specific allowances, and the payment schedule. This document also addresses medical decisions, responsibilities of all parties, and parental rights. Both the surrogate and intended parents should have independent legal counsel review this agreement.
While the Internal Revenue Service (IRS) has not issued specific guidance on surrogacy compensation, it is considered taxable income for the surrogate and should be reported on their tax return. Some argue for classification as a gift or pain and suffering, but these interpretations lack definitive IRS support and may carry risks.