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Paid childcare

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An idle question re nannies - why is their pay always stated net?

37 replies

spicemonster · 13/02/2009 19:34

I have no intention of employing a nanny but I've always wondered why this is. As far as I know, the nanny job is the only one that is talked about in net terms. Is there an historical reason for this? Is it convention? Does it help/hinder working out how much you actually have to pay?

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Blondeshavemorefun · 26/02/2009 09:45

its not weekly we are discussing, but the fact that nannies talk in nett and not gross

weekly or monthly doesnt make a difference,but the gross and nett does

problem is many 1st employers wont share the tax code, making it harder to find a job that will pay gross, and then if you have 2 part times jobs the 2nd job does have to pay the higher rate of tax

you can say to a family you want x gross,but the agency (if you use one) will always quote nett to the family

45nanny · 26/02/2009 09:01

The royal mail still pay weekly .

nannynick · 26/02/2009 07:54

All employees want to know how much they get after deductions. Everyone else copes with doing the Maths.
Perhaps it is to do with lack of educational ability, though in a recent discussion we had on here, nannies these days have a good educational background.

mousehole · 25/02/2009 22:32

This reply has been withdrawn

withdrawn at poster's request

RachieB · 25/02/2009 22:24

I am with blondes

i know how much i want to "take home" per hour / day / week / month !

and so quote in nett terms

BoffinMum · 14/02/2009 13:43

Good point about the planning side of things. We employed a nanny housekeeper for four months once, and I was really shocked to find out that employers had to pay about £1000 a year extra NI contributions ON TOP OF the gross salary. This seemed like insult to injury when only one person was being employed, and I can understand why small businesses have been going under right left and centre if the on-costs are this high for everything.

I did four days' work for a college recently and I was not allowed to be freelance - had to show my passport to prove I was British, and be fully signed up as an employee (not with any employee benefits or perks, mind!)

Blondeshavemorefun · 14/02/2009 12:40

i blame the agencies - they say a job is £x nett

i have been paid nett for the last 17years, i know what i earn gross( from payslips) and when i go for an interview i saw i want xnett which works out about xgross so employers have a vague idea what the over all amount is

dont why why nannies are the only employee to be paid nett

PaulaMummyKnowsBest · 14/02/2009 12:04

nannyj.... if all nannies told their salary expectations in gross, employers would become accustomed to paying the tax and NI.

SchnitzelVonKrumm · 14/02/2009 10:08

We've always paid our nannies gross and monthly and they've never given any indication they expected anything different.

nannynick · 14/02/2009 09:47

Agree that it needs the agencies to change. Some agencies have been advertising Gross wages for several years - such as Lollipop Childcare, Windsor. That agency is run by a Recruitment Consultant... not by an ex-nanny. I suspect that is the reason why they advertise Gross wages... as in their previous recruitment work, salaries would have been Gross.

nannyj · 14/02/2009 09:34

I've always maintained that salaries are still quoted in net because some employers don't want to pay any or all tax and Ni. Out of all my nanny friends its prevelent that families pay part tax and some cash in hand.

I've never been to an agency where they have quoted gross pay so i've never quoted it either but i do know how much i earn a year gross and i get paid weekly but get a payslip monthly. I don't see how the gross/net thing will change until agencies change.

nbee84 · 14/02/2009 08:20

I worked in a shop back in the 80's and was paid weekly. All my nanny jobs bar 2 were paid weekly. As a childminder I was paid weekly. More recently I worked for Ocado (couple of years ago) who also paid weekly. My husband also pays his shop staff weekly.

I'm now paid monthly and prefer it as I 'feel' as if I am getting more money

I get my petrol money weekly, which is good as I get it in cash - so always have some cash in my purse.

nannynick · 13/02/2009 23:23

Net pay I feel hinders employers in terms of working out how much their employee will cost. It is far easier to work out costs based on a Gross salary, as the employer then needs to not worry about the deductions. Cost to employer is Gross Salary plus Employers NI, plus all misc expenses such as activities kitty, food, light/heat, mileage payments etc.

nannynick · 13/02/2009 23:11

I used to help on a government helpline... so know how horrible doing call centre stuff is - though we only have 7 people in our 'call centre'.

tankie · 13/02/2009 23:07

We were all kept on temp contracts so they could get rid and re-hire us at will - some people had been there as on-and-off temps for years Worst job I ever had.

nannynick · 13/02/2009 23:05

Wonder if call centre staff are so temporary, that few stay longer then a few weeks!

nannynick · 13/02/2009 23:04

Once upon a time, nannies could be a Personal Service Company. However that was closed by Inland Revenue (see IR35) in April 2000.

PaulaMummyKnowsBest · 13/02/2009 23:02

I am self employed so I always quote in gross

This makes me appear a lot more expensive than other nannies as they are generally quoting net

tankie · 13/02/2009 23:02

I used to get paid fortnightly in a call centre nick, never been paid fortnightly before or since!

nannynick · 13/02/2009 23:00

That raises another question... why are some nannies paid weekly? Weekly payslips must be a real pain for employers.

Surely most jobs these days are paid monthly - I've never had a weekly paid job (don't even think my paper-round when I was a teenager was paid weekly). Is it just nannies that get paid weekly... or does this happen in other occupations (I know HMRC does tax tables for weekly paid employees, so guess it must happen in other occupations as well, just not in any I've done before).

tankie · 13/02/2009 23:00

Also, don't see there would be much benefit to a nanny with one permanent employer being self employed anyway as you would lose out on sick pay, maternity, redundancy etc.

tankie · 13/02/2009 22:59

Nannies can't really be self-employed, any more than say a bank clerk or barmaid could choose to be self-employed. Maternity nannies or temp/ad-hoc type nannies who move jobs a lot can be though.

spicemonster · 13/02/2009 22:57

thank you BoffinMum - you are very clever

And thanks to everyone else too. I guess it's because the people who you work for are your employers, is that right? Would there be any merit in a nanny being self employed and just charging her clients an hourly rate?

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tankie · 13/02/2009 22:56

I know I can work it out, but off the top of my head I have no idea! I have friends in other industries who say things like, "I'm on 17k" and I think well, I know what turns up in my bank account every week...

nannynick · 13/02/2009 22:54

Tankie, details of your salary will be on your payslips - as payslips are always done Gross.
If paid monthly, multiply your Gross monthly pay (so pay before deductions) by 12 to get annual salary. You will also find previous pay details on your P60's.