Childcare and custody costs in the Canton of St. Gallen (cross-border guide)

Context

In a nutshell

• Fees calculated on the basis of income and family substance in the individual municipalities
• Flexible models between kindergartens (Kita), day families and after-school
• Contributions and subsidies paid according to municipal domicile regulations

Key facts

• What : Extra-family childcare expenses and reduction contributions
• When: Annually at the time of registration and tax update
• Where: Canton of St. Gallen and respective municipalities of residence
• Who: Families with preschool and school-age children
• Amount: Progressive variable fees and tax deductions for custody

The organization of extra-family childcare in the Canton of St. Gallen is one of the central nodes for reconciling professional commitments and domestic life. The Sangallen system is based on cooperation between Cantons, municipal administrations and private managers of preschool educational facilities. Finding an adequate accommodation for the children requires planning in advance, considering the strong impact on the monthly family budget and on the local costo della vita staff.

Types of educational facilities available

In the cantonal territory, families can count on three main channels of reception complementary to the family:

• Nurseries (Kindertagesstätten or Kita), intended for children from three months until entry into kindergarten
• Day parents or day families (Tagesfamilien), coordinated by specialized associations

Operational details

The gross expenses for a full-time place in a nursery reflect Swiss operational costs for qualified staff. To mitigate this burden, the Sangallo municipalities adopt graduated tariff schemes based on parents' economic capacity, integrating parameters related to taxable net income and the overall substance resulting from the latest taxation.

Tariff mechanisms and municipal benefits

The functioning of the subsidies varies from municipality to municipality, as the cantonal law grants broad autonomy to local authorities in defining reduction contributions (Betreuungsgutscheine or direct subsidies to the facility). In municipalities equipped with childcare vouchers, parents request the subsidy directly from their municipality of residence before the start of attendance. The final rate paid by the family unit derives from the difference between the standard fee of the contracted facility and the amount of the granted voucher.

The composition of the family net salary directly impacts access to subsidies. Parameters consider gross income net of mandatory contributions for AVS/AHV and LPP/BVG, as well as adjustments related to the number of cohabiting children. Once certain patrimonial or income thresholds are exceeded, the family must cover the full fee at market price, without any public support participation.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

The management of financial aspects related to custody also involves tax assessments. In Switzerland, proven expenses for the care of children entrusted to third parties can be deducted in the tax return. At the federal level, the direct federal tax allows a deduction for childcare expenses up to a maximum ceiling set by law, while the cantonal contribution administration applies deductions provided by the specific cantonal and municipal tax law of St. Gallen.

Operational procedure for enrollment and subsidies

To secure a place and possibly benefit from contributions, it is advisable to follow a linear procedure:

1. Identify authorized facilities in one's district or municipality of residence well in advance. 2. Check with the social office of the municipality of residence the requirements for granting subsidies or Betreuungsgutscheine. 3. Collect the financial documentation: the latest tax assessment, salary certificate, and employment attestation of both parents. 4. Submit the enrollment application to the facility and formalize the contribution request before enrollment. 5. Keep all invoices and monthly payment receipts issued by the facility to document expenses in the ordinary tax declaration.

Those intending to move or change employment in the canton can plan their net budget using a salary calculator, checking the impact of social and tax deductions to optimize family management expenses.