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Nanny pay advice - hourly versus weekly/monthly pay

(25 Posts)
user1494168328 Fri 06-Oct-17 12:30:41

Hi there, we are in the process of hiring a nanny and I’m wondering whether it makes more sense to pay her by the hour or in weekly or monthly set amounts.

Her hourly rate is £10/hr and she will be working 8am-6/7pm mon-fri with occasional overtime and evening and weekend babysitting. I thought paying her by the hour made most sense but now I wonder whether it would be best for both of us if I do a weekly rate of say £550. The reason is that as well as needing overtime, I may be able to work from home some days and I could let her go early, also my husband and I and the baby are likely to take long weekends here and there. I just think it would even itself out over time and this way, she can have down time without feeling like I’m paying her for nothing.

Sorry for long post but I would love to hear others experience and advice!

We have never done this before so don’t know what the norm is.

PS - we will be using an agency in order to pay her, do taxes, insurance etc etc

Austentatious Fri 06-Oct-17 12:43:54

There wouldn't be many nannies who would accept that; it's part and parcel of the job that sometimes you pay them when you don't need them - in terms of paid holiday, you will be able to select half of it usually and you can coordinate that with when you're off, but when you get home early, nanny gets the benefit too unless there are jobs around the place that need doing. That's the trade off for having her available at all times when you do need her.

user1494168328 Fri 06-Oct-17 13:11:07

Thanks Austentatious, are you a nanny? That is what I wanted to find out whether the pay by the week/month model even exists out there! My friend with a nanny encouraged me to do it this way as she thinks it would be best for both of us and she would do it this way if she had a job like mine where I might need to travel for a day and then I can work from home the next. We don’t really have a 9-5 lifestyle so I would hope for a bit of flexibility?

SuperDuperJezebel Fri 06-Oct-17 14:02:13

I think it's fairly standard as a nanny to sometimes get extra time off if your employer decides they don't need you, but not usual for them to say "I'm giving you tomorrow off but you'll need to stay til midnight on Thursday in exchange". All nanny jobs I've had (nanny for 15y) have offered a monthly salary based on extrapolating the hourly salary by the number of hours worked per month, and overtime is paid on top. However I think if you're clear on your expectations when advertising and interviewing, make sure that time off in lieu and overtime worked are equal, and ASK in advance (recognising that your nanny has a life outside of the job), I can't see it being a massive problem for the right person.

Squiffy01 Fri 06-Oct-17 14:40:04

Not many nannies would go for that.
Pay monthly. Nanny has set hours every week and if you get home early and she gets an early finish then that's just a perk of the job.
I don't know one nanny that would be happy for the parent to say I'm working from home so I don't need you but then try and not pay her, she is available to work it is your choice to not have her in. If you say don't come in on Wednesday then that's another perk very few will agree to swap it for a Saturday.
Also with regards to long weekends you can always take that out of your half of the holiday allowance.

NannyR Fri 06-Oct-17 14:44:18

I'm in a similar situation in the job I'm working at the moment. I get a couple of extra weeks holiday a year as my employers take more annual leave than I have in my contract. This means that any overtime is unpaid. To start with there was very little overtime and I was given plenty of notice, a couple of years down the line they are interpreting the agreement as them coming home late very regularly with no notice. It's impossible to have a social life outside of work as I never know when I will finish and they feel they are being really generous giving me extra time off (but I would have had the time off anyway, regardless of any overtime IYSWIM?)

I've recently been for an interview where a family want to do similar, pay me a monthly salary for x hours a week but if one of them comes home early, they want to bank that time and I can do unpaid overtime on another day. It's making me think twice about the job (which is fab in all other aspects)
In effect, I'm available and willing to work my normal hours, but they decide that they nt need me, then I'm expected to work outside my normal working hours for no overtime pay. I know I'm still getting paid for the same number of hours but it doesn't seem fair or right. Does this happen in other jobs or is it only with nannies?

Squiffy01 Fri 06-Oct-17 15:05:16

nannyr that sounds awful glad you are looking for a new job. My advice would be to skip this on you have interviewed for too. Banking hours is not a thing and if they are saying it at interview stage it will quickly get out of hand after being in the job awhile.

user1494168328 Fri 06-Oct-17 17:00:34

I think it’s a real shame that people have abused this model of pay and for the record that’s really not our intention! We have always been extremely generous and just want to find the right model that works for everyone. I am unfortunately expected to work all hours of the day and night with my job and don’t get overtime just a flat salary.

Perhaps flexible with a minimum no of hours per week gaurenteed and all overtime paid at a higher rate. We will speak to our nanny and figure it out.

Thanks for all the input.

Wildaboutoscar Fri 06-Oct-17 17:44:27

Ask your self if you would want to work like this. Employers says don’t need you tomorrow , come in Saturday instead .
You are told to go home from work and they will be docking your pay . Would that work for you and your family?
You sound like you want your nanny to be available 7 days per week ? How does she book hobbies / family time ?
Pay gross for hours contracted. Overtime for babysitting ( and babysitting should be on work days only ). If you come home early or have extra holiday you have a choice - nanny continues to work and you have time for yourself or you let her go home.
In many years of nannying unfortunately most employers take the p with their nanny -good employers are few and rare.

strongasmeringue Fri 06-Oct-17 17:45:31

If you come home early and let her go you can not pay her less shock.

Yerazig Fri 06-Oct-17 19:00:28

Unfortunately there are many nanny employers who abuse this type of set up. I'm a nanny and I would never take on a position where the parents begrudge letting me go early. I get the standard holiday allowance in my contract. But in reality get much more due to my employers taking holidays/long weekends etc. It's one of the things you have to suck up that there will be times where you don't need your nanny, but you shouldn't penalise her having to make up hours. You may get a nanny happy with the setup but your probably see her on a nanny group having a moan about it after a while.

nannynick Fri 06-Oct-17 19:19:53

Monthly for contracted hours, 8am-6pm x 5 days per week. So £500 per week / £2166.66 per month.

Then any overtime in first 15 days of the month is added on to that months pay (you must give payroll provider advance notice, so have a cut off point of 15th so you can tell payroll on 16th or soon after if falls at a weekend). Any overtime 16th to end of month gets added to the following months pay.

Use it or lose it... if you want them to leave early then you still pay for the contracted hours. Don't do "banking hours" as it gets very messy and is open to abuse. Letting your nanny leave early on occasion is being nice. In return they are nice to your child, they may even do the occasional late notice overtime if you get delayed in traffic/on trains without too much moaning. It is important to get the relationship to work, you need to treat them as you would want someone to treat you.

nannynick Fri 06-Oct-17 19:27:45

Overtime does not need to be paid at a higher rate. It might suit you to have fixed hours, plus an amount of overtime that might occur such as up to 10 hours per month paid at same hourly rate. Then extreme overtime is at a higher rate - for rare occasions when you need more than say 50 contracted hours plus have already used the 10 hours overtime.

Very flexible schedules tend not to work for most people as they need to earn enough to pay their bills and juggle their social life. The further ahead things can be scheduled the better, last minute changes are best avoided.

user1494168328 Fri 06-Oct-17 22:16:08

Thanks everyone for your responses. Once again I have to say that it’s sad that the immediate assumption from many is that I want to take advantage of our nanny. It couldn’t be further from the truth I only wanted to find the best solution for all of us.

It is hard as a Mum to be faced with the prospect of going back to work and trying to keep everything going smoothly when you have no control over your own hours yourself.

I think we have decided to propose that we pay £550 a week which is 10 hours a day 5 days a week @ £10/hr along with £10/day for her travel cost which is what we have been doing so far for part time work (or uber home if it’s after 8pm). I wanted some flexibility about my exact ‘get home’ time so some (normal) days I might be able to get there early but others it might not be until 7/8pm, and anything later would definitely be overtime. Based on the feedback here I guess we will just tot up the exact hours each day and I pay those each month. In terms of babysitting and weeknight and weekend work, I agree it makes more sense to just pay that separately.

Anyway it’s all a minefield for me. Wish I could just stay home with my boy but this is the best option for us long term financially.

Thanks again and please rest assured that we want our nanny to become part of the family and I have a lot of respect for her!

user1494168328 Fri 06-Oct-17 22:19:36

For instance we already agreed on a credit card for daily expenses, hefty xmas bonus (as long as she does a good job - which is the same expected in any job) and using our airmiles to fly her home to see her family once a year. Just so you understand where we are coming from and that we are really not trying to take the p***.

Iwantawhippet Fri 06-Oct-17 22:52:25

Our nanny works 7.30-6.30 but no weekends and no babysitting. We pay for her availability and she gets extra holiday if the children go to grandparents and gets to leave early if we get home early. I figure that she works long hours and it is exhausting. I want her to have energy when she is with the children, rather than being knackered.

We use another babysitter and not our nanny in the evenings. Under the European working time directive people are allowed 11 hours off between shifts. My understanding is people can opt out of the minimum hours but not out of the 11 hours break. So your nanny would need to leave by 9 to start again at 8. This 11 hours means an hour to travel home, 8 hours sleep an hour at home and an hour to travel back the next day - so not unreasonable.

We have organised our working around our nanny’s day...I start work early but am home for 6.30 so our Nanny can leave on time. DH does morning handover and comes home late.

if you want someone who will be with you for years you need to make the role sustainable. And that means making sure there is enough time for your Nanny to rest and have a social life.

Good luck - we have had a brilliant Nanny for six years and she has made our lives so much easier.

mrsplum2015 Fri 06-Oct-17 23:34:53

If you are paying your nanny from 8 to 6 you can't just get home at 7 or 8 pm, assume she's available until then and not pay her extra.
If you are likely to be home at 8 some nights you will have to pay her 8 til 8 every day, or agree that some days (for eg mon, wed thur) will be an 8 finish and other days 6, and pay accordingly.
A nanny does not earn enough to be giving that level of flexibility. It's very different to you giving that flexibility for a higher salary and to pursue a career path.
You may find that your husband will have to start committing to be home at 6 if he can start work earlier. Then you will have evening flexibility.

Squiffy01 Fri 06-Oct-17 23:47:20

You say you are going to be taking advantage but everything in your post sounds like you are. You want her at your beck and call she has a life outside of work. If her workings hours are until 6pm you can not each week tally up hours and say I let you go 5:30 that day so that's less money. And overtime needs to be arranged at a minimum the day before preferly longer. You can't ring up at lunch time or like a lot of bosses do 10 minutes before finish time and say can you stay late as then she doesn't have a choice.

And please don't be one of those bosses that because you are being generous with a bonus or a flight home you are amazing and nanny needs to say yes to every babysit or she is ungreatful. Your nanny will have a life too.

ThatsNotAKnifeThatsASpoon Fri 06-Oct-17 23:55:08

If a 7-8pm finish is a weekly occurrence you need to pay your nanny for a 55-60 hour week as a minimum, not 50 hours.

Don't take the piss confused

Wildaboutoscar Sat 07-Oct-17 16:57:43

If your nanny is contracted for a 10 hour day then you need to be home after 9 hours 50 min (to allow for 10 minute handover ).
You can’t assume she is going to be free to hang about to 8-9 pm - if it’s an emergency fair enough but if it is regular then you will need to pay an on call rate for that time and an hourly rate when you use her.
As other posters have said the 11 hours off between shifts can not be opted out of so if she finishes at 9 pm then she can’t start the next day until after 8 am.
I’m confused about the £50 per week for travel ?
As a nanny employer you don’t pay for your nanny’s travel to work - maybe you could save some money here.
You do pay for any travel she does with your child. However this should be paid seperately or the nanny will be liable for tax.

hiyasminitsme Sun 08-Oct-17 10:44:27

You can't get home two hours late without her prior agreement and extra cash. you'll lose nannies very quickly if you do that. You might be able to agree that she will be available to 8 and only use it when you need it, but you'll need to pay a higher hourly rate for that flexibility. £10 per hour gross or net? If you're in London that's low.

LillyLollyLandy Sun 08-Oct-17 11:16:14

I’m not a nanny. OP I am a mum of 3 working full time in a very senior role in the Big 4 so I totally understand where you’re coming from. My husband is even more senior than me. I’m not telling you this to brag but just to make the following point: The best advice I can give you is that you need to remember your child comes first. Both my husband and I leave work on time on “our” nights whether we’re finished what we’re doing or not. You absolutely MUST leave work on time to make sure you have a good relationship with his caregiver - no one is saying you can’t work in the evenings once he’s gone to bed. Believe me, the last thing you want is to have an unhappy, pissed off caregiver looking after your child.

squiglyline Fri 20-Oct-17 08:27:12

@user1494168328
Hey I'm a nanny,
I think they way you worked out hours/weekly pay makes sense.
If the nannys set hours are 8-6 that is 10hrs per day.
£10 ph x 10hpd x 5dpw =£500
Mileage would have to be paid at the the government rate which in Scotland is £0.45 per mile and reimbursement for any expenses incurred i.e. Entry to activities, lunches while out for nanny and child.
Law also states that if the nanny is able and willing to work and you don't need her you still need to pay her. Some nannies will refer to this as guaranteed hours. Any hours worked out with the set times would be over time and would be paid at the hourly rate. Usually in the contract it would say hours worked are 8-6 with a rate of X with a weekly/ monthly payment of Z.

UnicornRainbowColours Fri 20-Oct-17 23:36:48

Give and take is a massive part of this job on both sides.

In every job I’ve had and I’ve been a nanny for 8 years that’s 4 jobbs.

I’ve always been paid my full rate even when families decide to work from home, come home early, let me start late, go away for a long weekend or holiday.

redorangeblue Sat 28-Oct-17 23:00:29

Op, our nanny gets £10 net ph for similar 8-7pm, 5 days a week, which costs me I think £14-15ph with taxes NI etc.

It doesn't reduce if we relieve her early, say i work from home and let her off at 3pm, and I pay for babysitting (at reduced rate but it's watching telly as kids sleep). if we go on long weekends or holidays it's paid annual leave and she does get to choose some holidays. I also cover petrol, loads of expenses, kids outings etc

I'd quite like to understand myself what's a reasonable rate in outer London as a bit clueless what to do as kids move to school age.

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