The most important thing is that you are happy in your job and do not feel undervalued. We recognise that a large factor in this is the rate of pay you receive. A lot of things affect nanny pay rates and it is never as simple as giving a single per hour figure.
Pay is an emotive subject for many nannies and families. As a professional nanny you deserve an appropriate salary for the job you do and the value that you add to the role. The amount you receive is not a direct reflection of your worth as a nanny. What a professional nanny does is priceless. Parents, however, have financial constraints. They will have a budget for childcare and they need to make choices to fit within their budget. Nannies also have different priorities.
Net or gross?
While you may want to know what your take home pay is each month it is very important to agree a gross figure with a family. This makes it clear that you expect them to employ you appropriately and means they have a clear idea of what they will need to pay each month. The total amount they need to pay includes the contributions that they pay to HMRC on your behalf. You can find out more about taxation and National Insurance and the difference between net and gross salaries here.
There are many online tax calculators which can assist you in working out your net pay from a gross amount, or giving an estimate of the gross amount needed to obtain a specific net figure. Reliable calculators include ListenToTaxman and then net to gross UK tax calculator.
What affects nanny pay?
The key factors affecting pay are:
- Geographical location - the highest paid jobs are in London to reflect the high cost of living, followed by the South East. Pay is usually higher in larger cities than in rural areas.
- Your experience - an experienced nanny (10+ years) is usually paid more to reflect the skills they have honed over the years. New nannies can expect to start at the bottom of the salary scale and increase their wage once they have 2+ years experience.
- Your qualifications - a level 3 or higher qualification in childcare usually means higher pay for the first 10 years or so of your nanny career. Nannies with a degree often command a higher salary in recognition of the knowledge they have gained
- Benefits provided - accommodation for live-in nannies (and the standard of the accommodation), use of a car in time off, gym membership, a generous annual leave allowance and other perks may reduce the salary
- Unsociable or fractured hours - part-time jobs have historically paid higher on an hourly basis than full time jobs to compensate for the difficulty experienced in finding roles to fit around them. This trend now doesn't seem to apply to jobs which are part-time but full days.
What regulations are there covering nanny pay?
All live out nannies are entitled to receive at least the National Minimum/Living Wage.
Live in nannies are exempt from minimum wage regulations providing that they:
- Live as part of the family (e.g. sharing in chores, meals and leisure activities)
- Do not have separate accommodation
- Do not have to meet any other living expenses
- Can stay in the employer's residence in their time off
Live in nannies who do not meet these conditions, e.g. they have to pay for their own food or have separate accommodation, are entitled to receive the minimum wage. They may have their salary reduced by £49 per week. This is known as the accommodation offset.
What pay is reasonable?
We suggest that live in nannies be paid at least minimum wage, and that only unqualified nannies with no experience be paid minimum wage for live out work.
Pay in a nanny share
Pay in nanny shares should be more than when working for a single family. Dealing with two sets of employers, children on different routines and possibly two different workplaces is more work for you. We suggest a 25-30% increase on your gross rate when caring for children from 2 families together.
Pay for a Nanny With Own Child (NWOC)
When a nanny brings their own child to work with them parents are often unwilling to pay a full rate. This is because care is shared between their children and your child. They also experience wear and tear on their home and may need to factor in feeding your child or paying for activities. However it's unreasonable of them to expect to pay half the cost as they would in a nanny share. This often takes your wage below minimum wage and your employer still has many advantages over sharing a nanny. As your sole employer they do not have to arrange holidays with another nanny, benefit from you doing nursery duties and decide all the routines and activities for their children. If you decide to accept a reduction in pay we advocate that it should never be more than 20%.
An hourly overtime pay figure should be specified in your contract. This should be as a minimum equal to your usually hourly rate. You may wish to negotiate a separate rate with a 10-20% increase on for unplanned overtime.