Family Guide: Hiring a Nanny at Home in Finland and Other Scandinavian Countries
FINLAND - SUOMI
In Finland, any private individual can act as an employer. Here are the most important things and websites that will help with the process:
1. Key facts
Household deduction: The family gets back a significant part (up to 40-60% of the work part) of the expenses paid in taxes.
Private care allowance: Kela can pay part of the caregiver's salary directly to the caregiver, if the criteria are met.
Employer obligations: The employer takes care of pension contributions (TyEL), accident insurance and social security contributions.
2. Most important websites
Palkka.fi: This is your most important tool. A free service that calculates your salary, taxes and pension contributions for you. It automatically reports to the Incomes Register.
Vero.fi - Household as an employer: Here you can find up-to-date information on the household deduction.
Kela.fi - Childcare allowance: Instructions for applying for private childcare allowance.
Työmarkkinatori.fi: Official place to advertise job vacancies.
Migri.fi: If the caregiver comes from outside the EU, check here for information on residence permits.
3. Checklist for the employer
Always make a written employment contract.
Take out statutory accident insurance (mandatory if wages exceed a certain limit, approx. 1500 €/year).
Ask your employee for a tax card.
Pay your salary and take care of your notifications through Palkka.fi.
SWEDEN - SVERIGE
1. Key Facts
RUT Deduction (RUT-avdrag): A tax deduction for household services. Families can receive a deduction of 50% of the labor costs. When hiring a nanny directly, you can still claim this through your tax return.
Employer Contributions: If you pay more than 1,000 SEK per year, you must register as an employer and pay social security contributions (arbetsgivaravgifter).
Family Benefits: Sweden has a flexible parental insurance system managed by Försäkringskassan.
2. Essential Websites
Skatteverket.se: The Swedish Tax Agency. Detailed guides on RUT and acting as a private employer.
Försäkringskassan.se: For family benefits and social insurance.
Arbetsförmedlingen.se: The official Swedish Public Employment Service.
3. Employer Checklist
Register as an employer with Skatteverket.
Draft a written employment contract (anställningsavtal).
Ensure you have occupational injury insurance (arbetsskadeförsäkring).
NORWAY - NORGE
1. Key Facts
Parental Tax Deduction (Foreldrefradrag): Families can deduct documented childcare expenses from their taxes up to a certain limit.
Cash-for-Care Benefit (Kontantstøtte): If your child is between 1–2 years old and does not attend a state-subsidized daycare, you can receive a monthly benefit to help pay for a private nanny.
Employment Threshold: A household is considered an employer if the annual salary paid exceeds 6,000 NOK.
2. Essential Websites
Skatteetaten.no: The Norwegian Tax Administration. Guides for "Paid work in the home."
NAV.no: For applying for kontantstøtte and other family allowances.
Altinn.no: The digital portal for government reporting and forms.
3. Employer Checklist
Report the employment via the "A-melding" system.
Verify the nanny's residence and work permit (UDI.no).
Sign a formal written employment contract.
DENMARK - DANMARK
1. Key Facts
Service Deduction (Servicefradrag): A tax deduction for household services, including childcare (approx. 6,000–7,000 DKK per person per year).
Private Childcare Subsidy (Privat pasning): Danish municipalities (kommune) often provide a financial subsidy if you choose a private nanny instead of public daycare.
Mandatory Insurance: You must take out a statutory industrial accident insurance (arbejdsskadeforsikring).
2. Essential Websites
Skat.dk: The Danish Tax Agency. Information on the servicefradrag.
Borger.dk: The public service portal for applying for municipal childcare subsidies.
Virk.dk: The official portal for business and employer administration.
3. Employer Checklist
Apply for the subsidy from your local municipality before the employment starts.
Sign a written contract with the nanny.
Secure the mandatory accident insurance from a private provider.
ICELAND - ISLAND
1. Key Facts
Municipal Subsidies: Most municipalities (like Reykjavik) pay "childcare subsidies" (niðurgreiðslur) to parents who hire a private "day parent" (dagforeldra) while waiting for a daycare spot.
Pension Contributions: It is mandatory for the employer to pay into a pension fund on behalf of the employee.
Social Security Tax: Employers must pay a payroll tax (tryggingagjald) to the tax authorities.
2. Essential Websites
Skatturinn.is: Iceland Revenue and Customs.
Island.is: The central portal for public services in Iceland.
Reykjavik.is: For information on local childcare subsidies in the capital area.
3. Employer Checklist
Check local municipal rules for private childcare subsidies.
Ensure correct social security and pension payments.
Always have a written contract and insurance in place.