One of the most common and worrying questions for women working freelance is: “What happens to my business when I give birth? Can I keep a few old clients and issue invoices to them while I am on maternity leave?”.
As a freelancer, you are the face and the engine of your business. However, the state has very strict rules about when and how it pays your benefits. Here is everything you need to know, explained in simple language, without complex legal terms.
1. The basic NSSI rule: Personal Labor = Stopping the Maternity Benefit
The logic of the institutions is simple: as a freelance professional, you earn your money through personal labor. The state, through the NSSI (National Social Security Institute – the government agency responsible for paying out maternity, sick leave, and pension benefits), pays you a maternity benefit precisely so you do not perform this labor, but recover and take care of your child.
If, during your maternity leave, you decide to complete a project (for example, logo design, text translation, or writing code) and issue an invoice for this service, you are practically declaring to the state that you have resumed your work activity.
- During the first year (410 days of pregnancy and childbirth leave): If you resume activity and start working, you lose the right to the NSSI benefit for the days you worked.
- During the second year (childcare up to 2 years of age): If you return to work, your benefit does not stop completely, but it is drastically reduced – you will receive only 50% of the scheduled amount for the second year.
2. What income CAN you issue invoices for or receive money for?
There are a few exceptions where you can receive money in your account without it counting as “performing labor” during your maternity leave:
- Payments for a past period (Old invoices): If you completed the work and issued the invoice before you went on maternity leave, but the client is only paying you now with a delay, there is no problem. This is simply collecting an old debt.
- Passive income and copyrights: If you wrote an e-book, created an online course, or sell ready-made digital templates before giving birth, you can continue to sell them. This income is treated as passive (from copyrights), not as a result of current personal labor. You do not owe social security contributions on them, only tax.
- For filing deadlines, see When and who must file an annual tax return?.
- If you sell them on platforms like Etsy or Amazon, do not forget the rules in What is VAT and when do we have to register for mandatory VAT?.
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3. The difference between a Freelance Profession and an EOOD (Ltd.)
This is where one of the biggest downsides of the freelance profession shows. As a freelancer, you do not have the right to hire another person to do the work instead of you.
However, if you had a company – an EOOD (the Bulgarian equivalent of a Single-Member Ltd or LLC) – things would be different. As a company owner on maternity leave, you can hire an employee on an employment contract to do the ongoing work with clients and issue the invoices. This way, the business does not stop, and you receive your full maternity benefit because the employee is the one performing the labor. If you are considering a change, be sure to read Advantages and Disadvantages of an EOOD (Ltd.) and Freelancing.
Frequently Asked Questions (FAQ)
Question 1: Do I have to close my freelance registration while I am on maternity leave?
- No, you do not need to delete your registration in the BULSTAT register. It is enough to submit a single declaration to the NRA (National Revenue Agency), with which you declare an “interruption of activity”. This stops your obligation to pay monthly social security contributions while you are at home with the child.
Question 2: Can my husband or a friend do the work on my behalf so I don’t lose my clients?
- Not legally. A freelance profession is tied to your personal capacity, knowledge, and skills. You cannot transfer or delegate the work to another person through your registration. If you want someone else to work, they must have their own company (Ltd/EOOD) or freelance registration.
Question 3: Can I sign a civil contract with a client while on maternity leave during the first year?
- This is highly risky. Working under a civil contract again requires the performance of personal labor. If the NSSI detects that you worked under a civil contract during the first 410 days, they will demand that you return the benefit for the days you worked on the project.
Question 4: What happens if I just issue the invoice but don’t submit a declaration for resuming activity?
- This is a violation of the law. When you issue an invoice, your client will include it in their expenses, and you must include it in your annual tax return. The systems of the NRA (collecting taxes) and NSSI (paying benefits) are connected. When it is seen that you have income from labor during a period of maternity leave, the NSSI will demand a refund of the paid amounts plus interest.
Conclusion
If you are registered as a freelancer and are receiving maternity benefits, you must not issue invoices for currently performed services. Every invoice for a service means you have performed labor, which automatically leads to a reduction or suspension of your maternity benefits from the NSSI. The best approach is to officially interrupt your activity and rely only on passive income or collecting old debts until you decide to fully return to your business.
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