I am in the process of looking for and employing a nanny. I would like to offer a per hour gross wage including NI and tax and then pay Employers Liability on top. What is the average gross hourly rate in the Muswell Hill area? Any help greatly appreciated!
The agencies will tell you that around £10ph net is the going rate. I think this equates to around £13 ph gross (and employer's NI on top - I assume this is what you mean by employer's liability? Or are you planning to take insurance? The NI would be another pound or so an hour). This would be for a nanny with more than a couple of years of sole charge experience, good english, some sort of qualification etc.
However anecdotally I am hearing that the downturn is affecting nanny pay and that there are far more London nannies out there working on £8/£9 ph net. IME the agencies tend to talk rates up, because their fees are based on the nanny's pay.
How many hours? If it's part time the hourly rate will be higher. Other factors like the nanny's experience and qualifications will effect pay too. Agencies will bump up wages as well - I think you could find someone for £10-£12 gross an hour (though upwards from that for more experienced, qualified nannies).
You could try establishing local market rates by trial and error, using low cost internet advertising on sites like NannyJob / Gumtree. For example, consider all the essential qualities/quals/experience you require and put those in the job ad. Consider how much you can afford to pay... what you feel is reasonable to pay... keeping in mind the cost of extras (activities/outings, nannies food, mileage allowance, etc). Pick a figure say £1 an hour below the amount and try running an ad. Wait a week or so and see how many applicants you get and see how closely they meet your requirements. If you get no suitable applicants, inform all those that applied that they have been unsuccessful and replace the advert with one at the higher amount.
Also look at nannies advertising for work on various internet sites. You may find that can help indicate local pay rates.