How to Reimburse a Surrogate Without an Agency in Canada

If you are pursuing an independent surrogacy journey in Canada, you may be wondering how to reimburse your surrogate without an agency managing the process.

The good news is that you do not need an agency to administer reimbursements. Intended parents can manage the process directly, provided each payment is tied to an eligible surrogacy-related expense and the required documentation is collected before reimbursement. The key is to create a simple system early so your surrogate is not left out of pocket and you have a clear record of every payment. After helping intended parents and surrogates navigate reimbursements for more than 16 years, we have developed a practical process you can follow.

Surrogacy in Canada is altruistic. A surrogate cannot be paid for carrying a child, but she can be reimbursed for eligible, out-of-pocket expenses related to the surrogacy. The federal Assisted Human Reproduction Act (the “AHRA”) and the Reimbursement Related to Assisted Human Reproduction Regulations (the “Regulations”) govern this process. Following the correct process supports a safe and positive journey, ensures that your surrogate is not financially disadvantaged, and reduces the risk that a reimbursement could be viewed as an unlawful payment.

Here is how to do it, step by step.

What do you need to reimburse a surrogate directly?

In most cases, you need four items before sending a reimbursement: an eligible surrogacy-related expense, supporting documentation such as a receipt or mileage record, any required written medical recommendation, and a completed declaration containing the information required by the Regulations. Lost work-related income follows a separate process and requires medical certification and evidence of the income lost.

Step 1: Start With Your Surrogacy Agreement

Before any reimbursement is made, review the expense provisions in your surrogacy agreement.

The agreement should explain:

• which surrogacy-related expenses the intended parents have agreed to reimburse;

• whether any agreed limits apply to particular categories;

• how often reimbursement requests will be submitted;

• how quickly intended parents will review and pay each request;

• what supporting documents must be provided; and

• how unexpected or unusually large expenses will be handled.

The federal Regulations determine which categories may legally be reimbursed. Your agreement sets out the financial arrangements agreed upon by the parties within those legal limits. An expense is not automatically payable simply because it appears in the Regulations. It must also be related to the particular surrogacy and addressed by the parties’ agreement.

If you and your surrogate do not yet have a surrogacy agreement, Plaid Fertility Law’s online platform can help you safely and seamlessly establish a compliant agreement.

Step 2: Create a Simple Reimbursement System

Agree on a routine before expenses begin to accumulate. A monthly reimbursement cycle works well for many independent journeys, although the parties may choose a different schedule.

Create one secure digital folder for each month. Your surrogate can upload:

• the completed declaration form;
• receipts and invoices;

• mileage details;

• any required written medical recommendations;

• proof supporting a lost-income request; and

• confirmation of benefits, Employment Insurance, or other amounts received for the same loss.

Use consistent file names, such as: 2026-09-14 Prenatal Vitamins $32.50. Keep a spreadsheet or reimbursement log showing the date incurred, expense category, amount requested, amount approved, date paid, and payment method.

Clarity at the beginning prevents frustration later. Your surrogate knows what to submit and you know exactly what to review.

Step 3: Confirm That Each Expense Is Eligible

The Regulations list the categories of expenses that a surrogate may be reimbursed for when they are incurred in relation to her surrogacy.

They include:

• travel, including transportation, parking, meals, and accommodation;

• care of dependants or pets;

• counselling;

• legal services and disbursements;

• drugs and medical devices;

• products or services provided or recommended in writing by an authorized pregnancy care provider;

• the cost of obtaining that written recommendation;

• midwife or doula services;

• additional groceries related to the surrogacy;

• maternity clothing;

• telecommunications expenses related to the surrogacy;

• prenatal exercise classes;

• delivery-related expenses;

• health, disability, travel, or life insurance; and

• obtaining or confirming medical or other records.

The expense must be genuinely connected to the surrogacy and must reflect an actual out-of-pocket cost. A flat monthly allowance, a round-number payment without supporting expenses, or money paid in anticipation of future costs does not satisfy the required reimbursement process. Health Canada states that anticipated expenses and unaccountable allowances may be treated as prohibited payments.

Some categories require particular care. For example, reimbursement for groceries should reflect additional costs related to the pregnancy, not the grocery bill for the surrogate’s entire household. Telecommunications reimbursement should cover surrogacy-related costs, not her full phone or internet plan.

A simple test before you reimburse

Ask three questions:
Was this cost actually incurred?
Was it incurred in relation to this surrogacy?
Do you have the documentation required for this type of expense?

If the answer to any of these is unclear, pause before reimbursing and review the agreement and the applicable rules.

Are There Financial Caps on Surrogate Reimbursements in Canada?

The Regulations do not impose an overall dollar cap or fixed limits for categories such as groceries, maternity clothing, counselling, or childcare. However, every reimbursement must be for an actual, documented expense within an eligible category, relate to the particular surrogacy, and not create financial gain or function as disguised compensation. In practical terms, the amount should be reasonable, proportionate, and readily explained by the declaration and supporting documents.

Health Canada’s Guidance illustrates this principle. Grocery reimbursement should cover additional costs required to support a healthy pregnancy, not the surrogate’s entire household grocery bill. Similarly, telecommunications reimbursement should cover additional surrogacy-related costs, not her complete phone, internet, or cable bill.

The main express financial limit in the Regulations applies to personal vehicle mileage, which must be calculated using the applicable Canada Revenue Agency automobile allowance rate for the year of travel. A surrogacy agreement may also establish budgets, limits, or advance-approval requirements. Those are contractual safeguards, not statutory caps, and they cannot make an otherwise ineligible payment lawful.

Not sure whether a specific expense qualifies? Book a free consultation with Michelle Flowerday to review your reimbursement plan before you transfer funds.

Common reimbursement mistakes to avoid

• paying a flat monthly allowance instead of reimbursing documented expenses;
• reimbursing an expense before the declaration, receipt, or required written recommendation is collected;
• treating a general household cost as though the entire amount relates to the surrogacy;
• using a gas receipt instead of the required kilometre-based calculation for personal vehicle travel;
• failing to account for compensation received from another source when reviewing a lost-income request; and
• keeping receipts in scattered texts or emails instead of maintaining one complete reimbursement record.

Step 4: Collect a Receipt for Each Expense

In most cases, the surrogate must provide a receipt showing the date and amount before she is reimbursed. If a conventional receipt is not normally issued, such as when paying an individual babysitter, signed written confirmation identifying the payment and date may be sufficient.

Personal vehicle mileage is the main exception to the receipt requirement. For every trip, record:

• the starting address;

• the destination address;
• the date and purpose of the trip; and
• the total number of kilometres driven.

Calculate the reimbursement using the applicable Canada Revenue Agency automobile allowance rate for that year. A gas receipt is not a substitute for the required mileage calculation.

Step 5: Obtain Written Recommendations When Required

Certain products and services are reimbursable only when provided or recommended in writing by an authorized health care provider. This may include cleaning, snow removal, massage therapy, chiropractic care, or another service required because of the pregnancy. Obtain the recommendation before reimbursement, and keep it with the receipt and declaration.

Step 6: Complete Health Canada’s Reimbursement of Expenditures Declaration Form

For ordinary surrogacy expenses, use Health Canada’s sample Declaration Form: Reimbursement of Expenditures.

For each expense, the form should identify:

• the type of expense;

• the amount requested;

• the date incurred; and
• the amount actually reimbursed.

The surrogate confirms that the expenses relate to the surrogacy, have not been paid by another source, and are accurately reported, then signs and dates the declaration. The intended parent records the amount reimbursed and payment date, and also signs.

The Health Canada form is a sample and is not filed with the government. Another format may be used if it contains all information required by the Regulations, but Health Canada’s version is usually the simplest option. Complete the declaration before sending payment.

Step 7: How to Reimburse a Surrogate for Lost Wages in Canada

Lost wages do not appear in the general list of reimbursable expenses in Section 4 of the Regulations because they are addressed separately under Subsection 12(3) of the AHRA and Sections 8 and 9 of the Regulations. Health Canada’s Guidance Document confirms that a surrogate may be reimbursed for work-related income she loses when the required conditions are met. Use the separate Declaration Form: Reimbursement of Loss of Work-Related Income, not the ordinary expenditure form.

A qualified medical practitioner must certify in writing that continuing to work may pose a risk to the surrogate’s health or to the health of the embryo or fetus. The Guidance recognizes both extended absences, such as prescribed bed rest, and shorter absences, such as time away for a medical appointment.

The Guidance goes further than the wording of the Regulations. Although Section 8 of the Regulations refers to loss of work-related income incurred “during her pregnancy,” Health Canada states that, in its view, lost income may also be reimbursed during the pre-pregnancy and postpartum periods if the required medical certification is obtained and the reimbursement otherwise complies with the Regulations.

Lost-income reimbursement is more document-heavy than ordinary expense reimbursement. Treat it as a separate request rather than adding it to the monthly expense total without its supporting records.

Before reimbursing lost income, collect:

• the completed and signed Health Canada lost-income declaration;
• written certification from a qualified medical practitioner;
• evidence of the income the surrogate would have earned during the certified absence, such as recent pay statements, an employer letter, or reliable business records if she is self-employed; and
• evidence of any amount received from Employment Insurance, workplace benefits, sick pay, disability coverage, or another source for the same period.

The reimbursable amount is the surrogate’s actual net loss, not her gross income. Start with the net income she would ordinarily have taken home for the missed period, then subtract Employment Insurance, sick pay, disability benefits, or any other amount received for the same loss.

For example, if the surrogate would ordinarily have received $1,000 net for a missed week and receives $650 in benefits for that week, the remaining net loss is $350. Subject to the agreement and supporting documentation, the reimbursement request should be for $350, not $1,000.

The declaration must identify the start and end dates, hours of lost income, amount requested, amount reimbursed, and reimbursement date. Both the surrogate and the intended parent making the reimbursement sign it.

Lost income calculations can become complicated when a surrogate is self-employed, works variable hours, earns commissions or tips, receives partial sick pay, or applies for benefits. Ask your fertility lawyer for guidance before paying if the calculation is unclear.

Step 8: Review the Request Before Sending Payment

Before reimbursing your surrogate, use this checklist:

• Is each expense legally eligible?

• Is it connected to this surrogacy?

• Is it covered by the surrogacy agreement?

• Is there a dated receipt or permitted mileage record?

• Is a written health care recommendation required and attached?

• Has the correct declaration been completed and signed?

• Has any payment from another source been deducted?

• Does the amount requested equal the documented out-of-pocket expense or actual net income loss?

If something is missing, ask for clarification before paying. A consistent process protects everyone and is not a reflection on your surrogate’s integrity.

Example: what a complete monthly reimbursement file might contain

For one month, the file might include a signed declaration, a prenatal-vitamin receipt, mileage details for two medical appointments, a maternity-clothing receipt, a written recommendation and receipt for a pregnancy-related service, and proof of the electronic transfer. Keeping the request together makes it easier for both parties to see what was requested, approved, and paid.

If you are unsure whether an expense is eligible, whether the supporting documents are sufficient, or how to calculate lost income, speak with a fertility lawyer before making the reimbursement. Advice before funds are transferred can prevent confusion and help protect everyone involved.

Step 9: Make a Traceable Payment

Once the documents are complete, reimburse the approved amount using a traceable method, such as an electronic transfer or bank transfer.

Include a clear payment note, such as September 2026 surrogate expense reimbursement, and avoid cash because it is harder to document. Record the amount and payment date on the declaration, sign it, and save proof of payment.

Step 10: Keep Every Record for Six Years

The person who reimburses the surrogate must keep the required documentation for six years after the date of each reimbursement.

For each payment, retain:

• the signed declaration;

• all receipts and invoices;

• mileage records;

• written recommendations and medical certifications;

• wage and benefit evidence;

• proof of payment; and

• any relevant correspondence about the request.

Health Canada may require the reimbursing person to provide these records or additional information. A well-organized digital system makes compliance much easier.

Frequently Asked Questions About Surrogate Reimbursements

Do intended parents need an agency to reimburse a surrogate?

No. Intended parents may administer reimbursements directly if they follow the AHRA, the Regulations, their surrogacy agreement, and the required documentation process.

Are Health Canada’s declaration forms filed with the government?

No. The forms are completed and retained by the parties. They must be available if Health Canada requests the reimbursement records.

How often can a surrogate submit expenses?

The law does not prescribe a reimbursement schedule. The parties may choose a weekly, biweekly, or monthly process that works for them and complies with their agreement.

Can intended parents pay an expense directly?

Yes. Some expenses, such as legal fees or insurance premiums, may be paid directly to the provider. Keep the invoice and proof of payment with the surrogacy records.

What should intended parents do about an unusual or disputed expense?

Review the Regulations and the surrogacy agreement before paying. If eligibility, documentation, or calculation remains unclear, obtain legal advice.

Can intended parents reimburse a surrogate by e-transfer?

Yes. A traceable payment method such as e-transfer can make record-keeping easier, provided the reimbursement itself complies with the legal and documentation requirements. Keep proof of payment with the declaration and supporting documents.

What happens if a receipt is missing?

Do not automatically reimburse the expense without documentation. Most eligible expenses require a receipt, although the Regulations provide an exception for personal-vehicle transportation and Health Canada recognizes that signed written confirmation may function as a receipt where a conventional receipt is not normally generated. If you are unsure whether the available documentation is sufficient, get legal advice before paying.

You Can Reimburse Your Surrogate Without an Agency

An agency can provide administrative support, but it is not legally required to process surrogate reimbursements. With a clear agreement, the correct Health Canada forms, complete supporting documents, and a consistent review process, intended parents can manage reimbursements directly.

The objective is simple: your surrogate should not be financially disadvantaged because of the surrogacy, and every reimbursement should be lawful, transparent, and properly documented.

At Flowerday Fertility Law, we help intended parents and surrogates set up practical reimbursement systems, interpret unusual expense requests, and work through lost-income calculations within the Canadian legal framework. 

If you are planning an independent surrogacy journey, it is often easier to establish the reimbursement process before expenses begin rather than solve documentation issues later. 

Contact us to book a consultation

Official Resources

•        Reimbursement Related to Assisted Human Reproduction Regulations

•        Health Canada Guidance on Reimbursement

•        Health Canada Declaration Form: Reimbursement of Expenditures

•        Health Canada Declaration Form: Reimbursement of Loss of Work-Related Income

This blog provides general legal information and is not legal advice. The application of the law depends on the facts of each surrogacy arrangement. Speak with a fertility lawyer about your specific circumstances.