National Minimum Wage and National Living Wage
All employees, including live out nannies, must receive at least the National Minimum Wage for their age group. The National Living Wage is the National Minimum Wage for employees aged 25 and over.
How much is the National Minimum (Living) Wage?
- £7.50/hour for workers aged 25 or over (National Living Wage)
- £7.05/hour for workers 21 and over
- £5.60/hour for workers aged 18-20
- £4.05/hour for workers aged 16-17 who are above school leaving age but under 18
The National Living Wage applies from April 2016. If you previously received the National Minimum Wage and are aged 25 or more then you should have had an automatic payrise. If your employer is not paying the new National Living Wage and you believe you should be getting it you should ask for a meeting to discuss it. Your employer should also make a back payment of the difference from the time you began to be entitled. Your employer can be fined for not paying your correctly.
These figures are liable to change in the April of each year. Those quoted above are from 2017.
Can my employer make deductions from the National Minimum (Living) Wage?
Yes. Your employer must deduct tax, national insurance and student loan repayments even if you earn the National Minimum Wage. The National Minimum Wage is a gross figure, which means that your take home pay may be less than the National Minimum Wage.
Your employer may also use the National Minimum (or Living) Wage as a guideline figure if you are a live in nanny and deduct an amount for your accommodation, known as the accommodation offset. The accommodation offset applies either daily (£6.40 per day) or weekly (£44.80 per week). This does not include any allowance for food.
If you are a live in nanny and your employer does not provide all your food you are entitled to the minimum wage minus the weekly accommodation offset.
If you have accommodation provided during your working week but must leave at weekends your employer must pay you the minimum age for your age but may deduct a daily amount for accommodation.
If you are a live in nanny who lives with the family, has all your food provided and is welcome to join in leisure activities (even if you do not choose to) then the minimum wage does not apply but you should still receive a reasonable wage which reflects your duties and experience.
I am self-employed, am I entitled to the minimum wage?
Self-employed people do not receive minimum wage. If you are doing self-employed babysitting work we recommend using the minimum wage rates as a guideline. You are still giving up your time and bringing your skills and expertise to the role, but it is not illegal to charge less than minimum wage for self-employed work.