If you hire a nanny to work in your home in France, you are legally required to declare her as an employee. This declaration means that your responsibilities as an employer include paying her social contributions on a monthly basis. In this article we will help you understand your obligations, how to calculate the cost of a nanny in France and outline the steps required to declare your employee.
It is important to note that it is a legal obligation for an individual who employs a person in their home to declare that employee and pay the social charges related to their employment. So whether you have a nanny, a cleaner, a housekeeper, a gardener, a butler, or any other private staff member working on your personal property read on… and we will cover the steps you will need to take.
What are the social charges and what do they cover?
Social charges are all the employer and employee contributions towards your nannies pension, health insurance and other charges required to be paid by all employers in France. The social charge is a calculated based on the gross salary of the employee and is to be paid monthly which will require setting up an account with URSSAF in order to facilitate this.
So what is a nanny actually going to cost me monthly based on gross or net salary?
It’s important to note that both the employer and the employee pay charges.
Fortunately, once registered with the Pajemploi branch of URSSAF, these charges will automatically be deducted for both the employer and the employee meaning that the employee will be paid the correct net amount each month.
The employer contributions are supplemented if you are eligible for any CAF aid and they represent around 41% of the gross salary of your nanny.
So what is the actual cost of having a nanny each month?
You will make an electronic declaration on the Pajemploi website in which you disclose the salary that you have paid to your employee and the system will automatically calculate the correct contributions and deduct them from your bank account.
Did you know you can also obtain a tax deduction by declaring your nanny. You can claim up to a 50% deduction ontax towards your private house in the form of a tax credit.
Firstly you need to make sure that you correctly declare your nanny by declaring the salary paid to your employee each month. This declaration must be done on the Pajemploi site, a free service created in 2019. Thanks to this platform you only have one step to complete each month which is to declare the salary that you have paid to your employee. Pajemploi will then take all the other steps necessary to ensure that all the contributions are correctly allocated. They do this by deducting the salary plus the contributions from your bank account and then transferring the salary minus the employees’ contributions to their account.
In order to benefit from this free service, both the parents and the nanny must sign up with their bank details. Your client page on your Pajemploi account will allow you to directly download the amount that you need to declare on your tax return every year.
Did you know that if you employ a nanny you are also responsible for paying 50% of their transport charges if they use public transportation to go to and from their employment. However, if they use a private vehicle it is for you to decide if you wish to contribute to this cost.
One important thing to remember is that you are required to provide and pay for the time and the fees for a medical visit for your nanny within eight days of employing them, including transportation to the appointment as well as a follow up visit once a year which you are required to fund.
If you are thinking about employing private household staff and your would like more information about this process or how Platinum Nanny can help you contact us at firstname.lastname@example.org or message WhatsApp: +33 7 60 03 83 55.