Becoming and being a parent is the best thing in life. I'm sure many people can attest to that. But being an entrepreneur and a parent can be difficult at times. There are not as clear times and frameworks as there might be if you are employed. There are also some other differences between being an employee and being self-employed that can be useful to know.
As a self-employed person, you can get compensation from Försäkringskassan if you have to stay at home to take care of your child. The amount of the allowance depends on how much you earn or how much surplus you make from your business.
If you are a parent, or about to become a parent, the same rules apply to those who have their own business as to those who are employed by a company. What is different from being an employee is that Försäkringskassan calculates your basic income for sickness benefits, often referred to as SGI, based on your expected income from the business.
How do you calculate it then?
It is simply the income from the profit or loss of the business after deducting expenses, charges and provisions for accruals. The Tax Agency determines the income from the activity on the basis of the declaration. It is not always easy to calculate your SGI, as you can read more in the article with Tom and Rebecka in Nässjö.
If you are going to be or are a parent, exactly the same rules apply to you as to an employee. The parental benefit you receive is based on the salary you receive from your company. If you are paid a low salary, or no salary at all, you can only receive compensation at guarantee level.
So it's important to take a salary if you own and run a limited company!
If you have a start-up company and a relatively low income, you will receive a basic income for sickness benefit for the first three years that is actually equivalent to what an employee with equivalent work, education and experience would have received from Försäkringskassan.
A positive aspect for many entrepreneurs is that they do not have to take full days of parental benefit. So you can take parental leave for part of the day and then work the other part of the day. You can also make changes afterwards if you have applied for parental benefit for one day, but instead had to work part or all of the day.
Whether you have or adopt a child, you are entitled to parental leave until the child is one and a half years old. If you have employees who want to take parental leave, they must give at least two months' notice before they want to take time off work.
Parents of one child receive a total of 480 days of parental benefit. They can be taken as full days or as partial days. One parent can choose not to take the days and let the other parent take them, but 90 days are reserved for each parent that cannot be given to the other parent. Depending on whether the child was born before or after 2014, days can be taken until the child is 8 (before 2014) or 12 (after 2014) years old. If there is joint custody, the parents are entitled to half of the 480 days.
As mentioned above, you and your partner are entitled to a total of 240 days of parental benefit each. However, 195 of these are based on your basic income and 45 of them are based on a minimum level of 180 SEK/day - regardless of income!
If you are not pregnant, you are entitled to take 10 days off in connection with the birth. You can take these days off at any time of the week, provided you would have been working during that time. You can only take 5 days in a 7-day period.
If an employee has physically demanding duties, pregnancy allowance may be granted. An expectant mother has the right to be off work for the entire time she is receiving pregnancy benefit from the Social Insurance Agency. If there are risks in the working environment for the pregnant employee, she may be entitled to pregnancy benefit if she is not allowed to continue working.
Find out more and plan your parental leave with smart tools and services on the Swedish Social Insurance Agency's website. Easily log in to My Pages with BankID, apply for parental benefit, VAB (Care of Child) and much more. You can also get tips, smart checklists and things to think about as a parent-to-be, parent and business owner.
Sick children, deadlines, holidays, finances and much more. Being an entrepreneur and a parent is hectic. The jigsaw of life can be difficult at times, although many times being self-employed can be an advantage because you can control your own time in a different way than if you are employed. In most cases, it should be added.
Tips! Read the article on coping with stress in How to become more stress resistant
7. Combine work and holiday
If you absolutely have to work during your holiday, there are a variety of ways to do it. Combine these tips with common sense and planning. Set aside an hour each day to keep in touch with customers and suppliers. When that hour is up, don't work any more.
Tips! Read the article Entrepreneur? Combine work and holiday!
Being a parent is not always a bed of roses. But try to remind yourself regularly why you've chosen to do what you do and live the way you do. It's probably because it's your dream and because you love doing it!
Good luck with your business (and family life)!
/The team at Qred