Employing a care provider or a home help
The services of a day care provider or a home help can be purchased from a company or a self-employed person. If you employ, for example, a day care provider, you become an employer yourself and will be responsible for paying the statutory pension and social insurance contributions in addition to the salary. You will also be responsible for taking care of the other employer obligations.
The company or the self-employed person selling domestic help (e.g. a cleaner who works as a sole trader) gives you an invoice for the services and you will pay it as normal. The company or the self-employed person pays the required taxes and social insurance contributions. It is a normal customer relationship between the company and you.
Contact the local tax office to find out, if you can get deductions in your tax assessment.
Unless the day care provider or the domestic help works for a company or is self-employed, the form of work is an employment relationship in which you are the employer.
- Draw up an employment contract with the employee in which you determine the hours of work, work tasks, salary, pay day and other similar matters. An oral contract is also valid, but a contract in writing is always more precise.
- Ask your employee to provide his or her tax card and bank details.
- Choose a pension insurance company and an insurance company and contact them. They will give you insurance numbers that you will need when you pay the pension and insurance contributions.
As an employer, you are responsible for paying the statutory pension and social insurance contributions and the salary for the days of leave accrued during the employment relationship as well as the salary. You can pay the salary and related costs, for example, through the Palkka.fi service (service available in Finnish and Swedish) which sends the necessary notifications to the relevant authorities and pension insurance companies and provides guidance on how to calculate the salary and the additional costs.
Already agree on how the employment relationship can be terminated when you sign the employment contract. A fixed-term contract is in force for a fixed period of time and can only be terminated during the contract period if both parties agree on this. Statutory periods of notice apply to an employment contract that has been made until further notice.
As an employer, you have the obligation to comply with the legislation on employment relationships. You may be held legally responsible if you break the law.
If you employ a day care provider to look after your under-3-year-old child at home, you can choose which of the following to apply for from Kela:
- child home care allowance
- private day care allowance.
If you choose home care subsidy, you can use the subsidy to pay the day care provider’s salary. If you choose private day care allowance, Kela will pay the allowance directly to the day care provider you have employed.
When the child is over three years old, you can apply to Kela only for private day care allowance. You are eligible for the private day care allowance until your child begins going to school.
If you employ a day care provider together with other parents, each family is separately entitled to child home care allowance and private day care allowance.