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.
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.
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.
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:
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