‘Go Gross’! How much should I pay my nanny?
If you have never hired a permanent nanny before, you may find the whole process a bit daunting — especially when it comes to details like how and when to pay. There are a few things to consider when calculating how much you can afford to pay your nanny.
‘Go Gross!’
The first thing we want to make clear is the difference between NET pay and GROSS pay as you need to establish which you are going to use to pay your nanny.
Gross = the amount of pay BEFORE tax or NI payments are deducted.
Net = this is the take home amount AFTER taxes have been with held.
Usually in the UK, employment is almost always discussed using a gross salary agreement, but in the nanny industry net salary agreements have been more common which can cause problems.
It is really important to agree the gross pay with your nanny rather than a net pay otherwise you as the employer could be liable to pay all tax deductions on top on the net pay which as already been agreed.
As an employer, it is your responsibility to pay any monies owed by the employee regardless of tax code or tax history. By agreeing a gross wage, you are protecting your costs as a nanny employer.
Tax Facts
- Only If you pay your employee £221 or more you must also deduct tax on from your employee.
- If your Tax and NI bill is below £1,500 per month you only have to pay the Tax and NI to HMRC on a quarterly basis.
- If your monthly liability bill exceeds £1,500 per month, you must pay HMRC every month.
National Minimum Wage
The Living Wage — which currently stands at £7.65 an hour across the UK and £8.80 in London — is calculated to provide a basic but acceptable standard of living. More information on this can be found on the Living Wage Foundation website.
So how much should I pay my nanny?
The salary you pay your nanny salary is dependent on their experience, education and also the duties required and the hours the nanny will work for you. Usually a part time nanny is paid hourly, while a full time nanny is paid on a salary.
A nanny with 5 to 10 + years of experience will expect a higher hourly rate than a ‘junior’ nanny with only 1 or 2 years experience under her belt. A nanny who has a teaching degree or further educational training will be on a highly hourly rate.
When calculating your nannies salary you need to think about not only what you can afford but what is fair. EG — do you require a nanny who undertakes a lot of housekeeping duties? Does the pay reflect the amount of work involved? At Nanny Network, we constantly see that nannies who are paid a fair wage often stay with their families the longest.
Here are some rough guidelines for different types of jobs:
- In London, a typical nanny salary is £9–15/hour for part time and you could be looking at £15–20/hour for a specially qualified nanny such as a maternity nurse or governess.
- Full time nannies work 50 to 60 hours per week 5 or 6 days per week. A full time Live out nanny’s salary in London is around £400–500 per week. This Nanny salary may go up to £600 per week dependant on nanny duties, hours, number and age of children, experience and qualifications.
- A full time Live in nanny in London earns an average of £314 per week. This may go up to £600 per week dependant on hours, number and age of children, experience and qualifications. Usually a live-in nanny will undertake a couple of nights babysitting as part of their contract.
- A maternity nurse or a night nanny usually works temporary short contracts and they usually charge from £110–250 gross per 24 hours. This figure is a very rough estimate and the amount you pay for a maternity nurse or night nanny would really depend on their experience.
Originally published at nanny.network on February 12, 2018.
