If you hire a private day care provider
You can hire a day care provider and receive child home care allowance for children under 3 years of age or private day care allowance for children under school age. In that case, you are the day care provider's employer. Several families can also together hire a day care provider.
If the child is in a private day care centre or looked after by a private family day care provider, you do not enter into a contract of employment with the day care provider and you are thus not the day care provider's employer. You can still be granted private day care allowance, which Kela pays to the day care provider. Kela withholds taxes on the allowance.
Parents employing a day care provider
When you hire a day care provider under an employment contract, you must, as the employer, withhold taxes on the wage according to the day care provider's tax card. In addition, you must pay social security contributions and statutory insurance contributions, including unemployment insurance contribution, earnings-related pension contribution, workers' compensation and group life assurance premium. The family must pay contributions for the whole wage, also for the share corresponding to the allowance paid by Kela. When a private household acts as employer it must also arrange occupational health care for the employee.
Day care pool, i.e. day care provider for several families
The family can hire a day care provider together with one or several other families. In such a day care pool, one day care provider looks after the children usually by turns in each child's home. Each family can receive child home care allowance for children under 3 years of age or private day care allowance for children under school age. The amount of the allowance is affected, for instance, by the time of day care. The municipality (locality) may also pay a municipal supplement to the allowance. You can use the calculator to estimate the amount of allowance for your family. The families agree themselves on the wage payment to the day care provider.
Kela pays child home care allowance to the family, and the family can use the allowance to pay wages to the day care provider. As regards child home care allowance, the day care provider does not have to be approved by the municipality. Kela pays private day care allowance directly to the day care provider (separately for each child). The private day care allowance can never exceed the child care fee. All the families have to conclude a contract of employment with the day care provider and attend to their share of the statutory contributions.
- Arranging occupational health care when a private household acts as employer
- Employer's contributions
- Day care providers
- Private household as employer (vero.fi)
- Wage calculation service for private households acting as employers (palkka.fi)
- Households as employers – what to report to the Incomes Register and when?