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Hi

I am sure there have been some threads on this but cannot seem to find with the search engine. Would someone be able to tell me a few things about hiring a nanny:

- Going rate range - gross hourly rate eg 10-13? ph gross

- Other costs to factor in if any that are not included in the gross pay eg pension?

- Do you pay holidays?

- Does the hourly rate change based on number of children? Eg different rate for 2 versus 3

Anything else you can think of!


Thanks

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https://www.eastdulwichforum.co.uk/topic/168660-nanny-going-rates/
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Hi


If you employ a nanny directly (i.e. not through an agency) and you are the principal employer then you need to set up a pension for the nanny and pay into it.


Until April next year, you must pay 1% of the nanny's earnings between a lower and upper limit. Then it's 2% until April 2019 and 3% thereafter.


The current limits are ?113 to ?865 a week. For example, if you pay ?200 in a week you would pay 87p (i.e. 1% of ?200 - ?113) into the pension. If you pay ?1,000 in a week, you would pay ?7.52 (i.e. 1% of ?865 - ?113). You would usually pay the contributions across monthly.


You also need to deduct contributions from the nanny's pay (or pay them on their behalf if you are feeling generous). 1% until April 2018, then 3% until April 2019 and 5% thereafter.


These are all minimum amounts. You and the nanny can pay more if you want.


You can simplify things by using an agency (in which case you don't worry about any of this as you aren't the employer) or a payroll agent who will calculate the weekly pay and arrange the deductions. Of course, it adds to the costs.


I think you need to pay holidays. Again, if you use an agency, you might find that they absorb that cost and only charge you for the time used. It also relieves you of some of the hassle of being an employer.


Please treat this information as a brief idea of what you need to do. There are a lot of other considerations, some exemptions, and important rules about notifying the employee of your intentions re the pension.


Hope this helps


Nick

Rate of pay is between you and the nanny.


We used to pay ?10 net/hour and now pay ?11.50 net/hour for a much more experienced nanny who is now looking after 2 kids. When we interviewed, we saw Mums with their own child who were offering to work for net figures below the London Living Wage (which would always represent our base minimum as a net sum).


Essentially and without any derogation, you are an employer so must give everything to your nanny that you would expect for yourself in the workplace, that includes paid holiday, SSP, maternity or parental leave, pension (depending on your commencement date and assuming the nanny elects to take up the pension), overtime if not provided for in the contract and full employment rights including redundancy pay if you need to release the nanny more than 2 years after they start working for me.


I really hope you find a great nanny and that you give to them all the employment rights they are entitled to receive.

"assuming the nanny elects to take up the pension" is no longer quite right.


If the nanny is earning ?192 per week or more, you must set up the pension and enrol the nanny. The nanny has no choice whether to be enrolled or not, but can then contact the scheme to opt out.


If the nanny is earning ?113 - ?192 per week then you must offer them the pension and they can choose whether to join or not.


The ?192 is a "trigger." Therefore, if they earned ?150 in week 1, ?200 in week 2 and ?150 in week 3, they would have triggered the enrolment in week 2 and would remain enrolled in week 3 unless they opt out.


More info here: http://www.thepensionsregulator.gov.uk/en/employers

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