As I prepare for a second maternity leave I’ve debated whether or not I should continue to do some freelance work while I’m at home with a new baby and toddler…you know, in all my FREE time!
Ha.
I’m just starting to get into a rhythm with my freelance writing and I don’t want to lose this momentum while I’m off of work for a year.
Also, while I feel incredibly lucky to live in a country that provides up to 18 months of maternity or parental leave, the money you receive from the government isn’t great.
The basic benefit rate is 55% of your average weekly earnings up to a maximum amount of $53,100 (as of Jan 1, 2019). This gives you a maximum of $562 per week, before taxes if you choose to take a year.
If you opt for the full 18 months then the benefit rate is lowered to 33% of your average weekly earnings up to a maximum amount of $337 per week.
If you earn a higher salary this can feel like a major strain on your finances. Especially if you work for a company that doesn’t provide top ups (like me).
So, not only would I love to keep my foot in the door when it comes to freelancing but I’d also like to make some extra money to help fund my leave.
When I do go back to work full time I want to be in a position to make extra side money. It’ll be really helpful necessary to bring in some additional income to help fund the insane cost of childcare.
Childcare in Alberta ranks third in the Nation, this is not a position I’m proud to announce.
Having two kids in daycare will cost us approximately $3000-$4000+ per month.
My husband and I make a good living but this is a ton of money to be coming out of our monthly income and an amount we won’t be able to sustain in addition to saving for the future on our current salaries.
Check out this related post:
Food or Family? The Insane Cost Associated With Having a Family
The Facts According to the Government
Here’s what’s posted on the Government of Canada’s website in regards to working while on maternity or parental leave. There are two options but only some people can qualify for option 2.
“If you work while receiving maternity or parental benefits and have served your waiting period, you will be able to keep 50 cents of your EI benefits for every dollar you earn, up to 90 percent of the weekly insurable earnings used to calculate your EI benefit amount. This 90 percent amount is called the earnings threshold. If you earn any money above the threshold, we will deduct it dollar for dollar from your benefits.”
What is a waiting period?
This is a one week period that you have to wait between when you stop working and when you start receiving EI benefits.
If you work during this period the government will deduct your earnings dollar for dollar. This includes any vacation pay or severance pay.
As of August 12, 2018 mothers/fathers are able to keep 50 cents of their benefits for every dollar earned up to 90% of the weekly insurable earnings. This equates to about 4 and a half days of work.
Any amount earned above 90% will be deducted dollar for dollar.
If you are working full time hours you aren’t eligible to receive EI benefits regardless of how much you earn.
- Also, check when you can implement the “working while on claim piece” do you have to wait 15-17 weeks?
2. Alternate Earnings Rule (available to some claimants until Aug 14, 2021)
“You keep the greater of $75 or 40 percent of your weekly benefit rate each week (the earnings from about one day of work) without any deduction from you benefits. Any amount earned above the $75 or 40 percent is deducted dollar-for-dollar from your benefits.
You may be eligible for this temporary option if you:
-previously chose to use the alternate earnings rule for an EI claim established under Pilot Project 20, and have since established a new claim starting on or after August 12, 2018, for any type of EI benefit; or
-are currently on an EI claim that started before August 12, 2018.”
If you’re eligible for the alternate earnings rule it’s important to note that once you opt into this option you can’t switch.
The government website suggests making your decision closer the end of your leave so you can decide which option would benefit you the most.
Workarounds I’m Considering
To be honest. After reading through the details of the Working While on Claim option, the only option I’m eligible for, I’m not jumping for joy.
It’s nice that there is a little bit of room to make some additional money but giving up 50% of my earnings is a tough pill to swallow. Especially when my time is so limited and I would rather be spending it sleeping!!
Here are a few other options I’m considering…
Front load your freelancing.
Work as much as you can before the baby is born.
Even as I write this I think “easier said than done.”
If you feel good during your pregnancy and have enough energy to put in a few good hours of freelancing after work, then this is a great option.
However, if you feel like exhausted and crappy during your pregnancy and you have an energetic toddler at home it can be tough to fill that “free time” with anything other than sleep.
I didn’t do a good job of front loading my work, mainly because I am just breaking into freelance writing. Now, at 8 months pregnant it might be a tad late for me. I’m completing as much work as I can before I go on maternity leave but I only have a few weeks left.
Speak with your clients and see if you can invoice later.
I’m hesitant on this one because it puts some extra burden on the client to pay a super hefty bill when it’s time for you to go back to work.
You’re also putting a lot of trust in your client to pay you after months and months of work.
But, I think it’s worth the ask and the risk….I trust my clients. So I’m going to give this one a go.
Do pro-bono work.
A lot of freelance writers will cringe at this suggestion.
The argument being that when you offer a service for free you’re helping to devalue that service in general.
I obviously don’t want to contribute in any way to the devaluation of writing. However, I’m just starting to gain some traction in the world of freelance and it’s something I’m very passionate about pursuing. I don’t want to halt all writing activities, even if they aren’t going to make me any money.
If I have to do a ton of free guest posts to keep myself in the game, then I’m happy to do it.
Also, I need a creative outlet to help me balance all of the baby talk, diaper changes and cold cups of coffee that come with motherhood.
Don’t get me wrong, staying at home with my babies is exactly where I want to be but last maternity leave I felt like my brain was turning to mush and I craved a creative outlet…which is actually what propelled me to start this blog!
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I’d love to hear from you. Did you work while you were on maternity/paternity leave. Do you have any tricks or tips to that you’ve used to keep your name in the game while you are off being a new mom or dad?
Excellent article. We are so fortunate to have 12-18 months of mat leave in Canada, but it’s hard to know how to handle a freelance writing side hustle. I (naively) planned to ramp up my business while on mat leave, but I quickly discovered time is extremely limited with a newborn!
Sandra, thanks for your comment. Despite already have a child I went into this maternity leave with the same plan. My boys aren’t even two years apart but it’s funny how quickly you forget the fatigue and all consuming laundry that comes with an infant. It is definitely difficult to find free time to be productive.