Care by a family caregiver paid from a pgb: when is that possible?

Yes, sometimes it is. With a pgb, you can purchase help, and sometimes also pay someone from your own circle for care. Whether that is allowed depends on the rules of the pgb you have.

What is a pgb and who can pay with it?

A personal budget, a pgb, is money to arrange care or support. Your loved one then chooses for themselves who provides the care, where, and when. That is different from care in kind. In that case, the municipality or the care office arranges the care.

The person with the budget is called the budget holder. Can they not manage the budget themselves? Then a family member or representative may do so. You apply for a pgb with the municipality, the health insurer, or the care office. That depends on the care that is needed.

A pgb comes with rules and administration. A care agreement is also part of that. Are you unsure whether a pgb suits your loved one? Then independent client support can think along with you for free.

When can a family caregiver be paid from a pgb?

Sometimes that is possible. Does your loved one have a personal budget? Then your loved one may pay you from it for the care you provide. This therefore does not apply to family caregiving in general, but to care that is paid from the pgb.

First discuss together what you will do. Make a list of the care you provide, how many hours that is, and what compensation goes with it. Then conclude a care agreement with your loved one. Choose the correct type of contract. The official templates can be found via the SVB for the pgb.

For family members, an employment contract may also be suitable. That depends on the agreements and the relationship. So do not choose the contract only because of the compensation.

What agreements should you include in a care agreement?

In the agreement, you record the start date, the type of care, the number of hours, and the compensation. Those agreements make clear exactly what you do and when. That also helps later with payment.

In the case of an employment contract, the budget holder is the employer and the care provider is the employee. That means employer costs, payroll administration, and employee insurance apply. With an agreement with a partner or family member without a relationship of authority, it is different. Then the care provider is not insured for sickness, unemployment, and disability.

Income from the pgb is taxable. It does not automatically build up a pension. If in doubt about the contract, you can have the relationship assessed. Start with the agreements about the work and then look at the rights via the SVB regarding care agreements.

What changes because of payment from a pgb?

Payment from a pgb is income. You pay income tax on it. It can also have consequences for benefits or an allowance. You usually do not build up a pension and often you are not entitled to unemployment benefit or sickness benefit.

Since 2026, new social assistance rules apply that take caregiving into account. Payment from a pgb remains income, however, and can have consequences for social assistance. So report changes. Also ask for a written explanation before drawing conclusions about your benefit.

The effect depends on your personal situation. The municipality administers social assistance.

How do you arrange the payment through the SVB?

With payments via the SVB, you agree on how the care will be paid. With varying working hours, you declare the hours or parts of the day worked afterwards. With fixed working hours, a fixed monthly amount can sometimes be agreed. Then retrospective declaration is not necessary.

With a municipal pgb, such a monthly amount is not always allowed. With a pgb under the Health Insurance Act, a fixed monthly amount is not possible. So first check the payment agreements and the rules of the provider. The payment routes can be found with the SVB regarding payment of a care provider.

What do you still need to do afterwards?

Then report your income to the Tax Administration. That is part of payment from the pgb. It is also good to keep checking the consequences for tax, allowances, and benefits.

If you still need to choose together how to handle this, start with the care agreement and the payment arrangements. That records what happens and prevents confusion later.