Baby in a million: payments to expectant mothers want to be exempt from taxes and contributions

Families will be able to receive money for a stroller and crib from their employer even before the baby is born, without tax deduction. They want to exempt assistance to expectant mothers up to 1 million rubles from personal income tax and insurance premiums, it follows from the amendments to the budget package (Izvestia studied them). Currently, the benefit is valid only for the first year after the birth of a child. They want to extend it to the period of maternity leave, which usually begins 70 days before delivery. For businesses, this will reduce the cost of such support, and will allow future parents to prepare in advance for replenishment. Which companies provide such payments more often and where to look for them can be found in the Izvestia article.

How businesses and authorities support expectant mothers

In Russia, many employers support expectant parents, in particular, they pay employees financial assistance at the birth of a child. Such support is voluntary: the company decides for itself whether to provide it and in what amount. The state encourages this practice with a tax benefit: payments of up to 1 million rubles per child are exempt from personal income tax and insurance contributions — deductions for pension and medical insurance. However, you can use the relief only if the money is transferred during the first year after the birth of the child. If an employee receives assistance before giving birth, the benefit does not apply to such a payment.

Most enterprises provide support to their employees in connection with the birth of a child, the press service of the Ministry of Labor told Izvestia. Its size may vary, depending on the capabilities of the employer. 227 enterprises pay such assistance in the maximum amount of 1 million rubles, the department shared.

Now the government is proposing to allow companies to transfer money both after the birth of a child and in advance — during maternity leave, which usually begins 70 days before delivery. This initiative is contained in a draft law from the budget package submitted by the Cabinet of Ministers to the State Duma. The document was studied by Izvestia.

The benefit in the form of exemption from personal income tax and insurance contributions for one-time financial assistance for a child paid by an employer to an employee during the first year after birth is valid from this year, the press service of the Ministry of Finance reminded the editorial staff.

The bill introduces a clarification that relief can be obtained even if financial assistance is paid before the birth of the child during the mother's maternity leave. If the law is adopted, the new rules will be effective from January 1, 2027, the ministry told Izvestia.

The Ministry of Labor supports the development of corporate initiatives aimed at supporting employees with family responsibilities, the agency told the editorial board.

For an employee, this is an opportunity to receive the entire amount without withholding tax, and for an employer to avoid additional costs, explained Anastasia Gorelkina, Chairman of the Board of Directors of HC Siberian Business Union. Without benefits, personal income tax is deducted from the taxable part of the assistance — usually 13-22%, depending on the annual income. The employer transfers insurance premiums in excess of the payment at his own expense; the total tariff is 30%.

According to the expert's calculations, at a rate of 30%, the company will save 28.8 thousand rubles for assistance in 100 thousand, 148.8 thousand — in 500 thousand and 298.8 thousand — in 1 million. The first 4 thousand rubles of matrimonial assistance for the year have already been exempted from contributions. If the company used this benefit earlier, the savings will amount to 30 thousand, 150 thousand and 300 thousand rubles, respectively.

However, not everyone will have such an advantage, the expert said. The calculations are correct if the entire taxable part of the payment falls within the annual limit of the base within which insurance premiums are calculated at a rate of 30%. A 15.1% tariff is applied to the amount above this limit, so the savings will be less. The same applies to companies that use reduced tariffs.

Which companies help future parents?

So far, such support is not available in all companies. According to estimates by public organizations, about 30% of Russian employers offer payments at the birth of a child, said Natalia Milchakova, a leading analyst at Freedom Global. The amount of assistance depends primarily on the company's budget: it can be 10 thousand, 100 thousand rubles or more.

Such payments are more often provided by large exporting companies, state—owned enterprises and IT corporations that benefit from tax benefits, the expert said. Such programs are less common in other industries, including among companies participating in ESG ratings that evaluate the environmental and social responsibility of businesses, as well as the quality of management.

Even within the same organization, the amount of assistance may vary. It is influenced by the position and length of service of an employee, as well as the number of children in the family, explained Lyudmila Ivanova-Shvets, associate professor of the basic Department of the CCI of the Russian Federation "Human Resource Management" at Plekhanov Russian University of Economics.

— They pay less for the first and second children, and more for the third and subsequent ones: on average, from 200 thousand to 1 million rubles. Some companies also keep part of an employee's salary during maternity leave after the birth of a child," she noted.

Such support is still rare in small and medium-sized businesses, the expert added. In her opinion, the exemption of payments to future parents from insurance premiums may encourage more employers to introduce such programs.

However, it is not worth expecting that payments will become widespread after the amendments are adopted, Natalia Milchakova believes. Rather, the benefit will encourage companies that had already planned to support expectant mothers, but postponed the decision due to the tax burden. Now it will become cheaper to transfer assistance during maternity leave.

At the same time, saving on insurance premiums alone is not enough: the employer needs to find funds for the payment itself. The decision depends on the company's profits, debt burden and loan servicing costs, the analyst explained. The exception is assistance provided by a collective agreement with a trade union: in this case, the employer is obliged to fulfill its obligations.

There is another limitation: payments before the birth of a child cannot be included in expenses when calculating income tax. For financial assistance transferred during the first year after the birth of a child, such an opportunity is already provided within 1 million rubles, follows from the explanations of the Ministry of Finance. Thus, the amendments will remove only part of the tax barriers for employers, Natalia Milchakova believes.

What are the changes for?

A stroller, crib, clothes and care products are usually bought before the baby is born, and housing needs to be prepared. Therefore, the employer's help may be useful at this very moment, says Anastasia Gorelkina from the Siberian Business Union.

— Timely support, even in the amount of significantly less than 1 million rubles, can facilitate the preparation for the birth of a child. I would consider such a payment as an addition to government benefits: not only its size is important, but also the time of receipt of funds," she said.

At the same time, an earlier transfer of money does not always give the company additional savings, the expert said. If the employer already planned to pay for postpartum care with exemption from insurance premiums, it will not be possible to win taxes. However, the employee will receive the money earlier, and the company will retain the right to benefits.

Before introducing such a program, the employer needs to estimate how much he can allocate. For small and medium-sized businesses, especially individual entrepreneurs and microenterprises, the additional costs may be significant, Natalia Milchakova from Freedom Global warned. Many small companies, from agricultural and manufacturing to technology, hotel and restaurant companies, need government support themselves, she added.

Clear explanations, standard provisions and a minimum of administrative difficulties could simplify the launch of corporate assistance programs, Anastasia Gorelkina believes. An additional incentive would be to co-finance payments for small companies.

Natalia Milchakova advises those for whom support during pregnancy and after childbirth is important when choosing a job, to pay attention to large successful corporations, including those with state participation. However, in any case, it is worthwhile to find out in advance whether such assistance is provided, what its size is and when the money is transferred, Anastasia Gorelkina emphasized. Clear conditions will allow the family to better plan expenses.

Thus, if the amendments are adopted, it will become easier for employers to help families at a time when basic purchases for the baby are already necessary, and the child has not yet been born. However, the prevalence of such practices will still depend on the financial capabilities of the business.