A nanny in Stockholm normally costs 300 to 400 kronor an hour before the RUT deduction, which comes to 150 to 200 kronor after it. At Happy Nanny, childcare costs from 165 kronor an hour after RUT. RUT, the Swedish tax deduction for household services, halves the labour cost and applies to childcare in the home up to and including year seven of school.
The price of childcare confuses a lot of people, and that is because the industry quotes it in two different ways. Some companies state the price before the RUT deduction, others after. The difference is exactly half. This guide goes through what the market charges, how RUT works in practice, and why a price that looks cheap sometimes means someone is not paying employer contributions.
How much does a nanny cost per hour?
The market rate for professional childcare in Stockholm is 300 to 400 kronor an hour before the RUT deduction. After the deduction the family pays 150 to 200 kronor. The biggest providers currently quote from 398 kronor before RUT, which is 199 kronor after.
| Before RUT | After RUT | |
|---|---|---|
| Happy Nanny | 330 to 398 kr/hour | 165 to 199 kr/hour |
| The Stockholm market | 300 to 400 kr/hour | 150 to 200 kr/hour |
What it comes to per month
The worked examples below are based on Happy Nanny's hourly rate and show what you actually pay after the RUT deduction.
| Hours | Hours/month | Before RUT | After RUT |
|---|---|---|---|
| One evening a week, 4 hours | 17 | 6,766 kr | 3,383 kr |
| Two afternoons a week, 4 hours | 35 | from 11,900 kr | from 5,950 kr |
| Three afternoons a week, 4 hours | 52 | from 17,680 kr | from 8,840 kr |
| Every weekday, 4 hours | 87 | from 29,580 kr | from 14,790 kr |
| Full time, 40 hours a week | 173 | from 57,090 kr | from 28,545 kr |
Why does the RUT deduction halve the price?
The RUT deduction gives a 50 percent tax reduction on the labour cost of household services, and childcare in the home counts as one. The cap is 75,000 kronor per person per year. If there are two adults in the household you each have your own allowance, so 150,000 kronor between you.
- The deduction applies to childcare in or close to your home.
- Skatteverket (the Swedish Tax Agency) applies the deduction up to and including year seven of school.
- Simple homework help during the session is included, but at most ten percent of the time.
- Pick-up and drop-off at förskola (municipal preschool, from age one) or school are included when they are part of the session.
- Payment must be made electronically. Cash payment gives no deduction.
- The person doing the work must be employed and the company approved for F-tax (the Swedish business tax registration).
Happy Nanny Sweden AB is approved for F-tax and registered as an employer, which is the condition for you to receive the deduction.
What should be included in the hourly rate?
The hourly rate on its own says little. What matters when you compare quotes is what sits behind the figure. Always ask about the following:
- The nanny's wages and holiday pay
- Employer contributions, 31.42 percent of wages
- Insurance during the session, ask which one and what it covers
- What checks have been done before the nanny meets your family
- What happens if the nanny is ill
- How the RUT deduction is handled, on the invoice or by you
If you do not get straight answers to those six questions, the price cannot be compared with any other price.
What do you get for your money with us?
Two things that do not show in the hourly rate, but that make all the difference day to day.
- The same nanny every time. You are matched with one person and you keep her. Your child recognises who is picking them up, you do not have to explain the routines all over again, and the nanny notices for herself when something is different. That is the difference from an agency where someone new turns up every week.
- A nanny who speaks your language. Our nannies speak Swedish and English, and we also have Bulgarian, Spanish and Arabic. If you want your child to keep their mother tongue, or to hear English a few afternoons a week, we match accordingly. Language development needs repetition over time, which only works when it is the same person every time.
Aleksandra, who runs the company, interviews every nanny herself, and every family meets their nanny before deciding. You ring one person who knows your child's name.
Is it cheaper to employ a nanny privately?
Rarely, and always more work. If you employ someone privately you become an employer: you pay employer contributions of 31.42 percent on top of wages, arrange insurance, deduct tax, file an employer declaration every month and are responsible for the working environment in your own home.
| Through a company | Employing privately | |
|---|---|---|
| Employer contributions | Included in the hourly rate | You pay 31.42 % |
| Insurance | The company's responsibility | You arrange it yourself |
| Tax deductions and declarations | The company's responsibility | Every month, your responsibility |
| Vetting the nanny | Before the first meeting | Your responsibility |
| Cover when she is ill | The company's responsibility | None |
| RUT deduction | Handled on the invoice | You apply yourself |
What does it cost to pay a nanny cash in hand?
More than you think, and the risk is not only yours. Without employment there is no insurance if the child or the nanny is hurt, no RUT deduction, no sick pay or pension for the nanny, and nobody who takes responsibility if something goes wrong. Paying under the table is also a tax offence for both parties.
Counting the RUT deduction, an insured nanny through a company costs 165 kronor an hour, roughly what many people pay cash in hand, but with all the employer responsibility taken away.
What affects the price?
- Number of hours. Regular weekly sessions are easier to plan than one-off evenings.
- Time of day. Late evenings, nights and weekends mean unsocial hours for the nanny.
- Number of children. One and two children cost the same; from the third child there is an extra 20 kronor an hour.
- Children's ages. Babies need nannies with specific experience.
- Special needs. Allergies, medication or disabilities affect which nanny is the right fit.
Childcare at Happy Nanny costs from 165 kronor an hour after the RUT deduction, and you get the same nanny every time, in Swedish, English, Bulgarian, Spanish or Arabic. Want to know what it would come to for your family? Get in touch and we will work out a quote for your hours.
Frequently asked questions about price
How much does a nanny cost per hour in Stockholm?
A nanny in Stockholm normally costs 300 to 400 kronor an hour before the RUT deduction and 150 to 200 kronor after. At Happy Nanny, childcare costs from 165 kronor an hour after the RUT deduction, depending on how many hours you book.
Do you get the RUT deduction for childcare?
Yes. Childcare in the home gives a 50 percent tax reduction on the labour cost, up to 75,000 kronor per person per year. The deduction normally applies up to and including year seven of school. Payment must be made electronically for the deduction to apply.
Is it cheaper to employ a nanny privately?
Rarely. If you employ someone privately you become an employer and pay employer contributions of 31.42 percent on top of wages, arrange insurance, deduct tax and file an employer declaration every month. After the RUT deduction it usually works out more expensive than using a company.
How much do we save with the RUT deduction?
Half. At 330 kronor an hour you pay 165 kronor after the deduction. Ten hours a week comes to around 7,150 kronor a month instead of 14,250. The cap is 75,000 kronor per person per year, so two adults in the household have 150,000 kronor between them.