What's the total cost of having a nanny?

[littlebearsmummy]

I've been trying to work out what the actual cost to us will be if we have a nany (versus nursery, childminder etc). We were quite set on a nanny but can't afford much of a salary by ourselves, and our nanny share option might not be happening. Anyway, with the nanny's salary, daily allowance, insurances, payroll (external) costs etc, what does it actually come to each month/year for people. Hope people don't mind sharing this with me, it would just be a very useful for me.

thanks

£1500 per month

Is that full time? It isn't nearly as much as I feared!

What hours of work, how many days per week. London or not in London?

full time, just outside london. thanks

about 2,300, I think. Factoring in tax.

Net is about 1,800.00 per month. Tax is about 2,600 per quarter. West London.

Full-time could mean anything from say 40 hours a week to 60 hours.

If 8am-6pm, then let's say nannies wage was £11 gross an hour (not unrealistic for outside London I feel, though you can get a feel for local wages by looking on nanny recruitment websites). So £110 a day. 5 Day working week. 50 hours a week = gross salary of £28,679 per year.

Payroll Calculator

Employers NI: £2982

Payroll admin cost: Varies, lets say £130

Weekly expenses kitty (for activities/outings) - lets say £5 per day, so let's call it 240 working days per year - nanny will get holiday. Kitty = £1200

On top of that you may pay for some more costly activities, such as swimming lessons, music lessons and the such-like... but those are of course very much optional and if you do them you would probably be doing them regardless of having a nanny or not.

So running total so far £32,991

Nannies travelling costs whilst on duty will vary from situation to situation. If nanny uses their own car, then employers would usually reimburse the cost at £0.40 per mile (this is known as the Approved Mileage Rate) - goes up on 6th April to 45p per mile I believe.

How many miles your nanny does will vary. I do quite a lot, around 4000 miles a year so a cost of £1800 a year if at £0.45 per mile.
I don't know how much travelling your nanny would do, so lets add £1500 for travel (which may or may not be reasonable depending on the circumstances), pushing our running total to £34,491

While your nanny is on duty, you give them food and drink. Nannies don't really get a lunch hour, can't leave your children home alone. So food is seen as a sort of perk in compensation for working without a break. How much does that add to your weekly food budget... I'm not sure. Nanny will eat with the children, so eat the same thing. If nanny wants something different, I feel nanny should be buying that themselves. So increase in food bill, extra £3 a day maybe? Heating/Light will also be used more as nanny is around during some of the day, so another few pounds. If comparing with a childminder/nursery, lights wouldn't be on at your home, heating may also be set low.
There is also some additional wear and tear on the property. Shall we lump all these types of cost together... say £2000 a year (about £8.33 per working day). Suppose you could include cost of Employers Insurance in that (as it is part of the home contents cover usually).

So £36,491

Bit of rounding up perhaps... so £36,500 cost to employer for a 50-hour per week live-out nanny.

Fuck me did I train to do the wrong thing.

The figure rubyslippers has given is less than my salary on it's own. I'm in West Surrey, just outside of M25 and work 40 hours a week.

Salary will depend on various factors - the main I suspect being how low you can get it and still get someone to apply for the who is suitable.

When I did that work through calculation back in December 2009 - see here the end figure was higher but it was then based on 55 hour working week. The biggest outlay is salary, so the more hours of care needed the higher the cost will be.

Keep in mind though, it isn't per child. It's for the care of all children in the family, so the more children involved the better.

Also worth mentioning that £11 gross per hour is around £8.40 net for a typical nanny. So if you see jobs in your area advertised as Net and higher than £8.40 then the cost will be higher than I've calculated.

Gulp...think I may have to get a new job to afford that! Really helpful though.

This is really useful - we have been looking at possible childcare solutions for 2DDs. It is now obvious that we have no hope of affording a nanny who would cost more than my salary. I know those calculations are for a 50 hour working week - but if I include the work I do in the evenings as part of my job i clock up about 60-65 hours a week.

Back to the drawing board...

Dysgu - you can calculate it for however many hours the nanny would need to work by doing the same calculation but using the different hourly and day multipliers, plus feeding the pay figure into the payroll calculator to get the Employers NI figure.

A nanny is costly. I would say that generally it is cheaper to use a nursery or childminder if you have 2 children. Once you have 3 children then it can swing more in favour of having a nanny. However it depends on the working hours - some parents need a nanny to start before a nursery is open, or finish after nursery closes. Nursery doesn't do laundry usually, nannies do tend to do that. There are various pros and cons to any childcare choice.

Glad you found the calculation useful.

For anyone looking at this calculation, if you not in the South East, then you may find the salary cost is less. Note the may though, as salaries in other places, especially cities can be similar.

dont forget things you may not realise, such as car insurance if they are driving your car and extra food that they may eat. some kitty money etc.

I used an excel spreadsheet to do a comparison when I was considering the same thing. i can send you my spreadsheet if you want but really it is personal to each person and what costs they assume to be built in. I did a nanny versus au pair versus childminder cost. i also built in how many holidays nanny would take, the cost of holiday clubs I would send my school child to if I had an au pair, some household extras etc. you need the rates and hours and then assumptions on the extras. The extra food cost for nanny is minimal to that of au pair as nanny just having light lunch. So did not bother with that cost in my thinking but covered most others mentioned above. My nanny does light extra duties (or plans to). I think it is worth stating that my costing worked out that the nanny would be more costly YES but NOT by much. And with that I have a lot less stress for my personal circumstances. I was amazed when I did the costs that it worked out so much less costly than I had anticipated. I will have 3 children from summer and I have worked out that the 3 year old will go to nursery for their free hours (just because i want them to get social stuff) so even with that, the nanny is still a good option. I would add that I had not considered it because of all the stuff I had read on here and it was only working out the cost impact for my own circumstances that made me think it was worth doing