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gross hourly rate for nanny

8 replies

NerdyBird · 12/04/2019 10:46

I just have a question about pay for nannies. We are looking for before and after school care for our daughter as our childminder has unexpectedly given up minding. I made a profile on the childcare site but I am mainly getting enquiries from nannies. Quite a few say their hourly rate net, so we still need to allow for tax, NI etc. On an hourly net rate of £12, how much is that likely to be? I suspect it simply isn't affordable for us but was wondering about doing it for a short period until we find more permanent solutions. Thanks for any help!

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Cora1942 · 12/04/2019 15:21

Always agree a gross rate with nannies.
A net rate could you lead you to pay unknown and high amounts of tax and NI. The nanny might have other jobs, pension , student loan etc.

Where abouts are you. In my area the normal rate is £11 to £13 gross. Which is lower than £12 net. The only nanny i know who gets £12 net is a nanny share.

Popskipiekin · 12/04/2019 15:24

Use a nanny pay calculator like this one: nannypaye.co.uk/nanny-tax-calculator

You can play about with it and will see what her gross will be for £x per hour net, and then what the total per annum cost will be to you.

stucknoue · 12/04/2019 15:34

If you go onto the hmrc basic tools site you can put in a salary and they calculate the employers ni, tax is irrelevant because it's deducted from their salary (always agree a gross salary) and you need to allow for 3% pension. Adding 10% to the gross salary is a good starting point.

nannynick · 12/04/2019 17:59

Net pay agreement opens you up to unknown costs, you simply do not know how much it will cost you. So work out a gross pay rate that you can afford to pay and offer that. The nanny can then work out their Net pay from that gross dependent on their individual financial situation.

With a before and after school job you need to consider what happens during school holidays. Maybe you simply want just the weeks at school. So lets say that is 38 weeks and that you want 5 hours per day, so 25 hours per week.

(38 weeks x 25 hours)+ 12.07% for paid holiday to be taken during school holidays = 1064.67 hours. Lets call it 1065 hours.
1065 hours x £12 net = £12,780 net.
So we KNOW this is over the threshold for auto-enrolment pension (£10,000) and is over a typical single persons personal tax allowance (£12,500).
On that basis if you were to offer £13.25 gross per hour then I don't think it would be far different, for 2019/20 tax year if someone has full personal tax allowance of £12,500 and if pension was done using Qualifying Earnings calculation method at 4% employee (+tax relief) pension contribution.
Your cost would then be a little under £15,500 (just under £300 per week/52 weeks). I expect this is quite a lot more than you were paying your childminder.

As Popskipiekin has written, you can get help from a nanny payroll provider (they have online calculators to give you a guide) who you can call to get a more accurate cost estimate. They have software which will do what I just did above but with more accuracy. You need to determine how you will be do holiday entitlement, if your nanny needs to work at all during school holidays, if pay will be spread over a year or just paid for working weeks, that kind of thing as it will affect the calculations.

Personally I would pick a gross pay amount and tell candidates that is what you are offering. £13-£14 gross per hour may well be the sort of salary you need to pay in your area for before/after school care.

NerdyBird · 12/04/2019 23:21

Thank you everyone. I think £14 per hour gross is more likely (we are in SE) which would be double the CM charge. We'd probably be really stretching ourselves and full days during holidays would be impossible.

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Cora1942 · 13/04/2019 12:12

Sounds like you have one child. What about a nanny share. That is you share a nanny with another family.

Blondeshavemorefun · 13/04/2019 14:04

Always gross

And often before after school care is a BIt more due to less hours over all

Work out your budget and offer that on a job as to see what responses you get

For one child a nanny is costly. For 2/3 it’s cheaper then a cm which is per child

NerdyBird · 13/04/2019 17:21

Not sure about a nanny share, it'd need to be someone who already drops off/picks up at the school or who looks after a child who is about to start there, and I'm not sure there are any!

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