Rates of pay will vary from role to role and also be based on a nanny’s experience, qualifications, hours worked and whether the position is a live in or live out one. The current minimum wage rates on this link apply to live in nannies as well as live outs https://www.gov.uk/national-minimum-wage-rates and all hours must be included in a contract and paid at an agreed rate whether employing a live in or live out nanny, including any baby sitting required and additional hours.
As an employer you must at the very least, comply with the national minimum wage, if you do not you could end up in an Employment Tribunal or be reported to HMRC and face a fine of £20,000.
For the current tax year starting April 2021, a family employing a live in nanny have a daily accommodation offset allowance of £8.36 per day / £58.52 per week which can be used against the salary being offered. These rates are set every April so it is important to keep up to date with new legislation. Accommodation provided outside the family home, will need to be declared as a Benefit in Kind. Please note no other benefit e.g food, car, healthcare counts towards minimum wage calculations.
A full time Nanny should be paid for 52 weeks of the year on an agreed day each week, fortnight or month. They will also be entitled to paid annual leave and this link gives more information about how the number of days a nanny is employed for affects their holiday entitlement https://www.gov.uk/holiday-entitlement-rights
Do consider your budget carefully when employing a Nanny. If you need long hours of childcare but can only afford a low market rate you may find you have a high Nanny turnover and you might want to consider either reducing the hours, offering a longer holiday period or Nanny sharing with another family to spread the costs. It is important for your Nanny to feel she is paid fairly for her skills and experience and the National Minimum wage should only be considered the very basic starting point for a candidate who is new to childcare with little experience with skilled nannies earning higher rates.
If you are considering hiring a nanny and would like some help and guidance on nanny salaries, please get in touch with us – we offer advice, salary guidelines, and we can send you over a detailed cost breakdown based on your family’s specific requirements.
