Hiring a nanny
There are different ways a nanny can be hired by the parents:
- Regulation for Personel at Home
A nanny that works three days a week or less for the parents can be hired under the Regulation for Personel at Home. The parents don't need to pay taxes and social security for the nanny, who is not insured with the UWV and gets a gross salary per hour. There are a few basic labour conditions with this system: the nanny has the right to 8% vacation money (is mostly within the agreed upon salary per hour, 4 weeks of paid vacation, 6 weeks of paid sickleave (70 % of the gross salary or the minimum wages + 8%) and the right to be paid when the parents are on vacation.
Minimum salary when parents have a right to tax-benefits:
1 child € 12,10
2 children € 13,40
3 children € 14,95
4 children € 16,50
5 children € 18,05
6 children € 19,60
- ZZP-Nanny (nanny with her own business)
A nanny can get tax-benefits when she starts her own business registered with the Chamber of Commerce. A registered nanny delivers offical daycare and does not have to pay BTW. A nanny that is not registered must pay 21% BTW over her income.
A nanny with her own business can not work for 1 family, she must have multiple clients to be recognized as an entrepeneur by the tax office. She pays less taxes when she works over 1225 hours a year and can proof she has the risk of losing her income. She has an agreement with the parents in which they decide to work together on an equal basis.
A nanny with her own business determines her own hourly salary, she will take in account the risks she has when she gets ill or goes on vacation. The parents have no risks, but pay a higher price per hour. A nanny with her own business, must demand at least the minimum wages + 8 % vacation money per hour.
- Full time nanny
A full time nanny (3 days or more) is fully employed by the parents, who have an employersnumber with the tax-office and can work a maximem of 40 hours a week. She gets a net income, the parents pay her taxes and social security benefits. She has a right to 4 weeks of paid vacation and paid sickleave. A full time nany can get three temporary contracts of 8 months in two years, After two years, she has the right to a unlimited contract. As the nanny is insured with the UWV for long term illnes, invalidity and unemployment, the gross hourly wages can be a little lower as with the Regulation for Personel at Home. The nanny always gets at least the minimum wages + 8% vacationmoney per hour. The costs of a full-time nanny are around 1,42 x the gross salary of the nanny per hour. Professional Nany PLUS can help the parents with organizing the salary administration (external bureau around 12,10 per hour), the mandatory ARBO-dienst (business doctor and help with long-term illness, costs arounf 125 euro's a year) and an employersinsurance is also possible between 500-600 euro's a year.
When the parents use a payrolling organization to pay the salary of the nanny, the nanny gets a contract with the payrolling organization and gets at least the minimum wages + 8% vacationmoney. The payrolling organization signs a labourcontract with her and send her to the parents to work for them. The nanny gets a net salary, the taxes and social security benefits are paid by the payrolling organization. She has the right to 4 weeks of paid vacation and paid sickleave. She is insured with the UWV for long term illness, invalidity and unemployment.