At Motherstories, we know how complicated it can be to find a childminder who's accommodating in every way! So when we find one that ticks all the boxes, we'll do anything to get it and keep it. In Switzerland, an estimated 30% of families have their nanny working "under the table" for financial, administrative or availability reasons. Our role is to inform you of the advantages and risks of both options in a neutral, non-judgmental way, because we know full well that each family does what it can, often with the means at hand!

Advantages of declaring & Risks of not doing so

Registering childcare in Switzerland offers many advantages, while not doing so can entail certain risks. It's important to understand the legal and financial implications, as well as the potential consequences of not doing so. Here's an overview of the advantages and risks of registering your nanny.

Advantages of registering your nanny in Switzerland :

1. Complying with laws and legal obligations
   Registering your nanny in Switzerland ensures that you comply with laws and legal obligations as an employer. This includes compliance with work permit requirements, employment contracts, minimum wages, accident insurance, social security contributions and other legal obligations. This enables you to protect yourself as an employer and avoid possible legal and/or financial sanctions.
2. Tax deductions
   Actual childcare costs can be deducted. In the canton of Geneva, for example, the law allows you to deduct up to CHF 25,048 per year and per child.
3. Social protection for the nanny
   By registering your nanny, you can offer her adequate social protection. This can include access to health insurance, pension insurance, accident insurance and other social benefits to which she is entitled as an employee. It can also help strengthen the relationship of trust with your nanny by showing her that you care about her well-being.
4. A positive image and healthy working relationships
   You'll be able to establish a transparent and respectful working relationship with the nanny, resulting in a harmonious and beneficial collaboration for all parties involved. What's more, parent employers show their commitment to respecting the law and contributing to the Swiss economy and society. You'll benefit from a positive image as a responsible, law-abiding employer, which can be appreciated by the local community, the authorities and other parents.

Risks of not declaring your nanny in Switzerland:

1. Legal and financial penalties
   Fines and penalties imposed by the authorities, which can vary, depending on the level of undeclared wages.
2. Risks for the nanny
   Not declaring your nanny can also entail risks for her in terms of social protection and rights as an employee. She may not have access to certain social benefits to which she is entitled, which can affect her long-term financial security and well-being.
3. Litigation and legal action
   If your nanny feels aggrieved by your failure to report, she may take your case to court. This can lead to costly litigation and stress, as well as legal and court fees. Similarly, if your nanny wishes to regularize her personal situation, she will have to give details of her professional experience in the country, and the names of her current or former employers.
4. Strained working relationships
   Failure to comply with laws and legal obligations on your part, and a lack of contractual obligations on her part, can create a climate of mistrust between you and your nanny, which can adversely affect the working relationship and the quality of care provided to your children.

How can you overcome the constraints involved in registering your nanny?

Finding a trusted nanny to take care of your children is a real relief for many parents. When you find that special person, also known as the "5-legged sheep", who meets all your criteria, it's important to formalize your working relationship with a contract.

However, certain constraints may lead some parents not to declare their employees:

High financial costs
For many parents, the cost of registering a nanny can be high. Social security contributions, taxes and other costs associated with employing a registered nanny can be a significant financial burden for some families. For these parents, hiring an unregistered nanny can be seen as a way of reducing the overall cost of childcare.

However, it's worth bearing in mind possible tax deductions. Employers can deduct the cost of hiring a nanny from their taxable income, as well as any actual childcare costs. What's more, measures such as reducing your working hours and knowing about all the childcare options available can also help you make the right decision.

Administrative complexity and time constraints
The administrative aspects of registering a nanny can also be time-consuming. Registering a nanny involves complying with numerous administrative obligations, including tax, social security, declarations and payments. If your nanny is Swiss or already has a work permit, you'll need to :

1. Register with the cantonal social security office for AHV contributions and deductions.
2. If your nanny earns a minimum annual salary of CHF 22,050, register with a pension fund for BVG (Swiss Federal Law on Occupational Retirement, Survivors' and Disability Pension Plans).
3. If your nanny has a B or G permit, register as an employer with withholding tax with the cantonal tax authorities.
4. If she has never worked in Switzerland, she will need to apply for an AVS number.
5. Take out accident and sickness insurance.
6. If your nanny does not have a work permit, you can find all the information you need here: Applying for a work permit (Swiss employer) | ge.ch.

For some parents, especially those unfamiliar with these administrative procedures, it can seem complex and daunting. To help you with this task, agencies such as BeeBoo, specialists in the search and recruitment of professional childminders, can help you with all the steps involved in recruiting and hiring a nanny.

Limited availability of registered nannies
In some areas, it can be difficult to find available registered nannies. Parents may have difficulty finding a qualified and competent nanny who is willing to be registered and comply with all legal obligations.

For example, if your employee does not have a work permit, but you declare her salary to the social security authorities, this will be considered "grey employment". Although this practice remains illegal, it can be a first step towards getting your employee fully legalized (see above for how to apply for a work permit).

Conclusion

Childcare is a central societal and family issue that requires special attention as an employer. While legal responsibilities may seem complex, it's important to understand that they are necessary to ensure a transparent and respectful working relationship between you and your nanny.

In this article, we've discussed the challenges of meeting legal obligations as an employer, while acknowledging the constraints of everyday life. However, it's essential to stress that solutions do exist to enable you to establish the best possible relationship with your nanny.
In conclusion, don't forget that the relationship with your nanny is based on mutual trust and an understanding of each other's rights and responsibilities.

By complying with regulations and promoting their profession, you can be sure of having the best possible nanny to take care of your children in the best possible conditions!

Download our comparative table of existing childcare solutions in Switzerland. A summary to help you see more clearly which solution is best suited to you and your lifestyle.

Maya De Barros
BeeBoo Web Editor
www.bee-boo.ch

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