How do you employ a nanny or au pair in Germany?

Need some help with childcare? Many families in Germany employ nannies or au pairs, but how does this work? quitt, a digital service that takes care of the registration, accounting and administration of private employment, explains.

There is a shortage of over 400.000 Kita places in Germany. Moreover, the places that are available usually have limited hours and it’s not uncommon for places to close due to staff shortages. Therefore, many families rely on private childcare, such as nannies, babysitters and au pairs.

Data shows that families employ a nanny for an average of 15,5 hours per week for 17,70 euros per hour. The au pair model is also popular, with over 13.000 au pairs working in Germany last year.

How do you employ a nanny privately?

Firstly, you will need to find a nanny suitable for your situation. Various online agencies can help you with this, from advertising platforms for babysitters to headhunters for full-time nannies. As soon as you have found your favoured employee, the general conditions, such as workload and salary, as well as personal wishes, must be agreed upon and an employment contract needs to be drawn up. Afterwards, the nanny must be officially registered to ensure that both parties are covered by social security and accident insurance.

In Germany there are three different types of employment which can be used to privately employ a child carer: 

Mini-job

One option is the mini-job, where the employee earns no more than 538 euros per month. This type of employment can be registered with the Minijobzentrale in a simplified procedure. Mini-job employees are not liable to pay income tax or social security contributions since they earn such a small wage. 

The employer has to pay contributions of approximately 15 percent of the mini-job wage agreed with the employee. Mini-job employees have the same employment rights as permanent employees, such as sickness benefits and holiday pay.

Midi-job

The so-called midi-job is another option, where the employee earns more than 538 euros but less than 2.000 euros per month (as of January 2023). Midi-jobs are subject to taxation and social security contributions.

Classic part-time / full-time job

The part-time working week in Germany is fewer than 30 hours per week. For full-time work, the average working week is between 36 and 40 hours. Part-time jobs and full-time jobs are also subject to taxation and social security contributions.

Jobs subject to social security contributions must be settled monthly with the tax office and social insurance and annually with accident insurance.

How do you employ an au pair in Germany?

First, you will need to select an au pair agency. The agency will find you a suitable au pair from abroad and it will take care of the administration. Of course, if you need your au pair to have special skills, such as certain language skills or a driving licence, for example, you can specify this in advance.

After getting to know each other online, the agency organises the au pair’s journey to Germany, as well as their registration. When it comes to the work contract, it must be agreed upon by both parties and have a duration of at least six months, but can’t exceed one year.

In addition to free boarding and lodging with the family, au pairs in Germany also receive a flat rate of "pocket money" of at least 280 euros, though 350 euros is more common. If the au pair is to take on other tasks in addition to day-to-day childcare, they can be registered for a mini-job as well. This way the au pair can earn a little extra money.

Due to their special status, au pairs are not fully covered by social insurance in Germany. There is usually limited health, accident and liability insurance available.

Private nanny or au pair?

Both forms of private childcare are popular in Germany and have advantages and disadvantages. While the private employment of a nanny, for example, enables a long-term and very trusting working relationship, employing an au pair does not cost as much. However, you will also need to consider your living situation, as au pairs live in the family home and are required to have their own private room.

Both forms are subsidised in Germany and employer costs can be deducted from tax. Two-thirds of the total childcare costs can be deducted in the annual tax return up to 4.000 euros per child.

Since the process of employing a nanny privately is complex, you might want to consult with a tax advisor or a digital service like quitt. quitt is a 100 percent digital service that takes care of the registration, accounting and administration of private employment and provides you with any important documents you might need, such as a sample contract or an annual cost overview for your tax return. Register your domestic help with quitt and get 20 euros off with the code iamexpat.