Mom as Nanny (from Asia)

[character]

sicheren Aufenthalt für jedermann..!!

SPAM!! WFT!!

[Pursuivant]

That was quite germane

[FinnGuyHelsinki]

Quick question already: do you a memory (even faint) how much is the whole package (salary, tax, insurance, etc) per month? Many thanks again, in advance!

The mandatory payments are relative to the salary, you can find the percentages here: http://www.vero.fi/?article=8603&domain ... nguage=FIN . I've no idea of the salary amount that's deemed adequate by the authorities, but based on the figures given earlier in this thread, you should prepare to dish out in the ballpark of 1500 euros a month. Also keep in mind the legal maximum working hours, extra pay for working weekends/holidays/nights/overtime and paid vacation days she's entitled to, etc.. Probably that won't be an issue, but still the legalities are something to consider in advance.

[itsme]

According to FinnGuyHelsinki's link, the employment fees in 2010 are (there'll probably be some changes in 2011 which you'll need to find out):

- TyEL (pension insurance) approx 22% of the nanny's salary (remember accommodation = granny lives at your place and eats from your fridge, counts as salary worth abt 400 eur/month). If nanny is below 53 yrs of age, 4,5% is her share = you pay 22% and deduct 4,5% from her salary. If 53 yrs or older, nanny's share is 5,7%.
- Työttömyysturvamaksu (Unemployment insurance): if nanny is under 65 yrs, you pay 0,75% + you pay another 0,4% which you deduct from her salary.
- SoTu-maksu (Social security fee): you will pay 2,23%
- Tapaturmavakuutusmaksu (accident insurance): between 0,3-8%, varies between different insurance companies and according to type of work. Probably nanny's insurance will be on the lower side of the scale.
- Ryhmähenkivakuutus - excempt from work which is not under a collective agreement (such as nanny)

So besides the salary you pay her, the side expenses will be between 30-40% of the paid salary & benefits (such as accommodation). You may be allowed to deduct all above mentioned fees (except the employee's shares 4,5% or 5,7% + 0,4%) and one third of the nanny's salary as "kotitalousvähennys" from your or your spouse's personal income tax - provided that you are not receiving benefits such as kotihoidontuki, matalapalkkatuki etc. at the same time for the same work as the employee is paid for.

Besides the above mentioned deductions from nanny's salary, you will also need to deduct her income tax and pay it each month (very easy with palkka.fi!). You will know her tax percentage when she receives her tax card which you will have to apply for. You can get an approximate idea of the percentage with tax%calculator: http://prosentti.vero.fi/veropros_tieto ... nguage=ENG


One more thing I forgot to mention: congratulations for the coming baby, I wish you all the best !!!

[character]

Sorry for the relatively late reply. Here it is now .

@FinnGuyHelsinki, @itsme: Your detailed guidance and explanation is very highly appreciated. Many MANY thanks!

Actually I have not had time to dive deep into Palkka.fi yet. But as I understood, palkka.fi will help me pay these benefits with single click, right?

One more thing I forgot to mention: congratulations for the coming baby, I wish you all the best !!!

Yes, exciting times these days + more to come . Thanks once again!

[itsme]

Actually I have not had time to dive deep into Palkka.fi yet. But as I understood, palkka.fi will help me pay these benefits with single click, right?

Dive deep into palkka.fi after the granny's RP issue is first cleared.

You input into Palkka.fi the relevant information about granny's work contract, mentioned insurances (which you have to buy from a pension insurance company before the work relation starts), tax percentage etc., then click -> it gives you the payment calculations, invoices etc.

[character]

@itsme: Sure, will do. First step now is to contact Työvoimatoimisto ..