What social security contributions do I need to pay for a nanny? A question that keeps coming up, and a highly relevant one when deciding whether and how to employ a private caregiver. Since the nanny is employed directly by the family, these costs need to be factored into your budget.
These are the social security contributions you need to budget for with a nanny
Employing a nanny in Germany requires not only paying the agreed gross salary, but also factoring in additional social security contributions on the employer’s side.
Employer’s social insurance contributions
- Health insurance: the general contribution rate currently stands at 14.6%, of which the employer covers half, 7.3%.
- Pension insurance: the contribution rate is currently 18.6%, with the employer’s share at 9.3%.
- Unemployment insurance: currently 2.6%, of which the employer pays 1.3%.
- Long-term care insurance: the employer’s share is always 1.7%.
- Accident insurance: compulsory for employers, usually between 1.3% and 1.5% of the gross salary.
In total, the employer’s contributions add up to roughly 20 to 23% of the nanny’s gross salary.
Example calculation
For an agreed gross salary of €3,500 a month, the employer faces additional costs of roughly €770 a month, bringing the total to approximately €4,270.
Other factors to consider
- Holiday entitlement: at least 20 working days for a 5‑day week.
- Continued pay during illness: up to six weeks.
- Trade association: registration is required for accident cover.
- Tax deductibility: household-related services can be deducted up to a certain amount, two-thirds of the costs, maximum €4,000 per year per child (rising to €4,800 from 2025, with 80 percent deductible).
Want to know the steps needed to register your nanny? Find out in this article.
Conclusion
Employing a nanny brings additional costs in the form of social security contributions on top of the gross salary. It is wise to factor these in early when planning your finances.
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