# Cost of child care in own home and PRSI implications



## laois1 (3 Aug 2014)

Hi all. Apologies if this is dealt with elsewhere. How much per hour would a childminder with fetac 5 qualification expect to get paid to mind 2 small babies in their own home ? I have read elsewhere that the childminders employer has to pay the minimum wage of 8.65 per hour plus employers PRSI as well as register as an employer with revenue. I have also read that the childminder is entitled to a payslip ? How does this work and how much PRSI would be payable based on a 20 hr week ? If the childminder has suggested that they would be happy with less than the minimum wage then how should this situation be managed ? Are there any insurance implications ? Many thanks for advice.


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## mandelbrot (3 Aug 2014)

In whose home?


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## laois1 (3 Aug 2014)

In the babies own home not the childminders.


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## Sandals (4 Aug 2014)

If minder in your home, you must pay minimum wage at least. The only reason I can see why any childminder in your own home would suggest less than minimum wage is if the person in question would be happier with cash, ie black market. From my own dealings, it very hard to get any one for less than €10/12, esp considering youv two small babies, this would be a qualified, first aid, garda vetted person.

There is insurance issues as youv employed whats known as a domestic servant in your home. Also if your babies would be travelling in her car, check the policy personally for Class II. The childminder will also be entitled to holiday pay and bank holidays.

If its only 20 hrs a week, have you consider using a home based childminder, who would be responsible for her own insurance and taxes (if any due)....your local childcare committee has a list of registered minders in your area.


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## laois1 (4 Aug 2014)

Thanks Sandals. Yes it is looking like the minimum wage is the starting point for qualified in house childminders. However an au pair is also a possibility although they are not qualified and so could be risky. I understand they will work around 30 hours a week for 100 euro. A neighbour has had one for years always Spanish and it has worked out well for her albeit the extra hassle with providing accomodation, food etc. I assume PRSI and payslips do not apply in the case of an au pair ? How does one issue a payslip with an in house childminder ?  Do you need to get an accountant to do this ? How much is employer prsi for 20 hrs a week on 8.65 ? Sorry am a bit clueless !


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## misemoi (5 Aug 2014)

Employers PRSI is 10.75% of gross salary.  So 20 hours at min wage is 173, and PRSI would be 18.60 on top of that.  You could do a playslip in excel and print it off.  You would need to register as an employer and make monthly & annual returns & payments for PAYE, PRSI and USC for your employee.


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## mandelbrot (5 Aug 2014)

It's 8.5% for class A0 employment (€38-€352 p.w.)


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## misemoi (5 Aug 2014)

Thanks for clarifying the PRSI rate.


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