How to Budget for Childcare Costs in Switzerland
Can You Make Childcare More Affordable?
It’s a startling fact that parents in Switzerland spend more on childcare than parents in all other OECD countries.
Gross childcare costs were equal to 69 percent of the average wage in Switzerland, the highest proportion among OECD countries in 2018, based on a double-income, average-wage-earning couple with two children.
Although childcare benefits, lower taxes and other rebates reduced the actual amount paid, families in Switzerland still spent 41 percent of their net income on childcare in 2018, more than three times the OECD average of 13 percent.¹
With such high costs, it makes sense to start budgeting for childcare costs as soon as you find out you are pregnant, if not before. Here is a step-by-step guide to budgeting for childcare costs in Switzerland.
1. Decide Which Type of Childcare You Would Prefer
First of all, discuss the types of childcare available with your partner and decide which one you both prefer. Select your second and third choices, in case your first choice is oversubscribed or isn’t feasible for another reason.
Several different types of childcare are available in Switzerland, including:
- Crèches (also known as nurseries or daycare centers)
- Childminders (Tagesmütter or mamans de jour)
- Babysitters
- Au pairs
- Private nannies.
2. Find Out Your Exact Working Hours
Working part-time or flexible hours can be a good option for one or both parents. It allows you and/or your partner to look after your baby for part of the working week, thus reducing the number of hours of childcare you’ll need to pay for.
If you and/or your partner would like to reduce or change your working hours, find out if this would be possible while you’re pregnant.
Although employees in Switzerland do not have a statutory right to flexible or reduced working hours if they have children, the right to reduced hours is included in some collective labour agreements and some companies allow parents to have flexible working hours.²
Find out your exact rights and entitlements by looking at your employment contract and asking the HR department.
If you and/or your partner need to apply for or request reduced or flexible working hours, do so as soon as possible.
Knowing your exact working hours as far in advance as possible will help you to budget more accurately for childcare costs.
3. Find Out How Much Childcare Will Cost
Once you’ve decided the type of childcare you’d prefer, call a few potential providers and find out how much it would cost. Now is also a good time to arrange appointments to visit providers and to apply for a place. Many providers have waiting lists, so it’s a good idea to apply as early in your pregnancy as possible.
Hiring a private nanny is usually the most expensive childcare option, costing from CHF 3,500 to CHF 5,000 or more per month, including the nanny’s social security contributions. However, a well-qualified nanny will make your life easier, providing high-quality, one-to-one care in your home.
A crèche is the second most expensive option. Crèches look after babies and children under the age of 4, usually from around 7 am until 6.30 pm on weekdays, providing a lot of flexibility for working parents.
An extra advantage is that your child will learn to socialize with other children from a very early age. He or she will also receive plenty of adult attention as babies and toddlers are looked after in small groups.
Expect to pay between CHF 60 and CHF 150 per day for a private crèche in Bern or Zurich.³ This works out at between CHF 1,255 and CHF 3,138 per month, based on a total of 251 working days in 2019.⁴
According to PostFinance, the average cost of childcare at a Swiss crèche is CHF 130 per day.⁵ This would set you back CHF 2,719 a month in 2019.
The amount you pay a crèche for childcare will be reduced if you receive an income-based subsidy from your canton. You may also receive other benefits and tax breaks.
Licensed childminders offer a cost-effective alternative to a creche place. Each childminder works from their own home, looking after a small number of babies or young children. They charge between CHF 5 and CHF 12 per child per hour, excluding food, which is billed separately. So, you’d pay between CHF 837 and CHF 2,008 per month, plus food.
If you or your partner work from home, you’d still need some kind of childcare because it’s very difficult to work effectively with a baby or toddler to look after. In this case, you could hire either an au pair or a babysitter.
Hiring an au pair costs between CHF 700 and CHF 850 per month. Although au pairs aren’t allowed to work for more than 6 hours a day or 30 hours a week in total, you could also work while your partner is at home, if your working week exceeds 30 hours. ²
The most flexible option is engaging a babysitter. This may be the best option if you work from home part-time or if you need extra help at certain times.
Expect to pay between CHF 18.55 and CHF 22.40 per hour for an adult babysitter, depending on their skill level and experience. Hiring a teenage babysitter costs less than this but teenagers may not be available during the working day.⁶
4. Calculate Your Total Childcare Costs
Once you know how much you’ll be paying for childcare each month, calculate your total childcare costs until your child starts pre-school at the age of four.
Next, aim to save as much of this amount as possible before you start paying childcare costs.
If you have a relatively large amount saved for childcare, you won’t have to meet all or most of your childcare costs from your monthly household budget.
This will give you some leeway, allowing you to pay for unforeseen expenses or cover your expenses if unexpected situations arise.
5. Set Up 3 Separate Budgets
Set up three separate budgets for:
- your pregnancy
- your maternity and paternity leave
- after you return to work.
In your pregnancy budget, save as much as possible towards your future childcare costs. Now is the time to make the most of the fact that you and your partner are both earning good, full-time wages.
Decide how much you’ll both allocate to your future childcare costs. This could either be a percentage of each of your salaries or a fixed amount per person. Whatever you decide, transfer the money into a dedicated high-interest savings account on each pay day.
While you’re on maternity leave, you’re likely to be on a lower income than when you were pregnant. You may therefore have less room in your budget for saving for childcare costs. Even so, it’s still important to save some money in this category each month, even if it’s only a relatively small amount.
After you return to work, you may decide to fund your childcare costs partly from your earnings and partly from your savings.
Alternatively, you could include all your childcare costs in your monthly household budget, leaving your savings to grow and cover any future shortfalls.
6. Budgeting for Childcare Costs After Your Child Starts Pre-School
Once your child starts pre-school at around the age of four, you may still need to pay for some childcare, including:
- Before and after school childcare outside school hours
- Care during the lunch break if your child’s school doesn’t offer full-day pre-school.
As your child gets closer to the age of four, find out what these costs will be and start saving for them. Once your child starts pre-school, update your household budget accordingly.
Reduce Financial Pressure by Budgeting for Childcare Costs
It can be difficult to balance the demands of work and parenthood. Paying for childcare can also be tough financially. However, saving in advance for your childcare costs can remove a lot of financial pressure.
Before you know it, your little boy or girl will be waving goodbye to you at pre-school and your childcare costs will be a lot lower.
References
¹ Net childcare costs for parents using childcare
⁴ How many working days and public holidays in 2019?