(2023)
When is employment in a private household subject to social insurance contributions?
There can be various reasons for employment subject to social insurance contributions for a domestic help:
- Wages over 520 Euro/month
- Multiple mini-jobs with total wages over 450 Euro/month or 520 Euro/month (from 1.10.2022).
In principle, there are no special features for the taxation and social contributions of household-related wages. As in the commercial sector, the employer must withhold income tax according to the employee's electronic income tax deduction characteristics (ELStAM) and pay it to the tax office.
If you employ a domestic help subject to social insurance contributions or a self-employed service provider, you can claim 20 percent of the costs, up to a maximum of 4.000 Euro per year. This also applies to care and support services for a dependent relative.
If you have registered a domestic help subject to social insurance contributions, the tax office will deduct 20 percent from the tax liability from the expenditure of 12.000 Euro per year, i.e. 2.400 Euro.
