How Much Compensation Do Surrogates Make?

Surrogacy offers a path to parenthood for many individuals and couples, involving significant financial considerations for all parties. For surrogates, understanding the financial aspects of this commitment is important. This article aims to clarify how much surrogates typically earn, the elements that influence compensation, and the various financial arrangements involved in the surrogacy process.

Understanding Surrogate Compensation

Surrogate compensation is the financial payment a gestational carrier receives for carrying a pregnancy for intended parents. This primary payment, often called “base compensation” or “surrogate fee,” is distinct from expense reimbursements.

The typical base compensation for a first-time gestational surrogate in the United States ranges from approximately $35,000 to $60,000. Experienced surrogates, having successfully completed previous journeys, generally receive higher base compensation, often ranging from $65,000 to $80,000 or more. This base fee is negotiated and outlined in the surrogacy legal contract before the process begins.

Factors Influencing Compensation

Several factors cause surrogate compensation to vary. Geographic location plays a role, with surrogates in states having a higher cost of living, such as California or New York, often receiving higher compensation. Agencies may also consider a surrogate’s proximity to the intended parents or clinic when determining rates.

Previous surrogacy experience significantly impacts compensation. Agencies value repeat surrogates, often paying a premium over first-time rates. The number of fetuses carried also influences compensation, with additional payments for twins or multiples due to increased risks. Health and medical history, including a clean medical record and complication-free prior pregnancies, can positively affect the compensation offered.

Additional Expenses and Reimbursements

Beyond base compensation, surrogates receive reimbursement for various out-of-pocket expenses directly related to the surrogacy process. These covered expenses are typically outlined in the surrogacy contract.

Common reimbursed expenses include:
Medical co-pays, deductibles, and uncovered medical bills.
Travel for appointments, screenings, and legal meetings.
Lost wages for the surrogate or partner due to appointments or bed rest.
Maternity clothing allowances (typically $750-$1,000).
Monthly allowances for daily expenses (e.g., childcare, prenatal vitamins).
Surrogate’s legal fees.

Payment Structure and Tax Considerations

Surrogate compensation is typically paid through a structured system, often managed by an independent third-party escrow account. The intended parents fund this account, and an escrow agent disburses payments according to the terms of the surrogacy contract. This arrangement provides financial security for both the surrogate, ensuring timely payments, and the intended parents, by safeguarding funds.

Payments usually begin after pregnancy confirmation (around 6-8 weeks) and continue in monthly installments until delivery. Milestone bonuses, such as for embryo transfer or confirmation of fetal heartbeats, may also be included.

Regarding tax implications, base compensation is generally considered taxable income. Surrogates may receive a Form 1099 from the agency or escrow service, requiring them to report this income on their tax returns. It is important for surrogates to understand that taxes are not typically withheld from these payments, so they may need to set aside funds for tax obligations. Consulting a qualified tax professional is recommended to understand individual tax liabilities and ensure compliance, as specific circumstances can vary.