If you have never hired a nanny before, you may find the whole process slightly daunting — especially when it comes to details like how much and when to pay a new nanny. There are a few things to consider when calculating how much you can afford to pay your nanny. We are here to help guide you through that process.
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 withheld.
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 as the employer you could be liable to pay extra tax on top of a salaried 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.
Only If you pay your employee £240 (year 2020/21) or more you must also deduct tax from your employee.
If your monthly liability bill exceeds £1,500 per month, you must pay HMRC every month rather than quarterly
Take a look here for a detailed breakdown of tax brackets for nanny employment.
Our partner NannyTax can help you make any arrangements you need.
National Minimum Wage
The Living Wage — which currently stands at £9.50 an hour across the UK and £10.85 in London — is calculated to provide a basic but acceptable standard of living. At Nanny Network we pledge to only work with parents who agree to pay the minimum London living wage when hiring a nanny. We partner with The Living Wage Foundation to keep this promise.
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 regular 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. For example — do you require a nanny who undertakes a lot of housekeeping duties? Does the pay reflect the amount of work involved? Since we started in 2011, we consistently see that nannies who are paid a fair wage often stay with their families the longest. We like to offer long term placements at Nanny Network — we have many nannies staying with their families for five or more years!
Here are some rough guidelines for different types of jobs:
In London, a typical nanny salary is £11–16/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 £500–600 per week. This Nanny salary may go up to £600 (or much more) 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 £350–500 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 £150–250 gross per 24 hours. This figure is a very rough estimate and the amount you pay for a maternity nurse or night nanny can really vary depending on their experience. Are you looking to hire a nanny? We can help! Post your job details in less than 5 minutes and available nannies will apply directly to your inbox today. Post your job here for free to get started.
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