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Home about Nannytax news Nannytax updates NMW & redundancy increase
National Minimum Wage and Redundancy rates increase PDF Print E-mail

The National Minimum Wage (NMW) and Redundancy Pay rates are both set to change from October 1, 2010

National Minimum Wage

The new NMW rates will be as follows:

  • £5.93 per hour gross for employees aged 21+
  • £4.92 per hour gross for employees aged between 18 and 20
  • £3.64 per hour gross for employees aged 17 and younger
There is an offset allowance if you provide separate accommodation for your nanny, which will increase to £32.27 per 7-day week.

Please note that it is a criminal offence to pay your nanny below the NMW and you can be fined up to £5,000 if you are found to be paying less.

Redundancy pay

To qualify for redundancy pay your nanny must be 18 or over and have at least two years continuous employment. This means that she must have been working for the same family, without any breaks, apart from maternity, sickness and unpaid leave, for at least two years. She must also be employed under PAYE.

The news rates will be as follows:

  • Aged between 18 and 21: half a week’s pay, or £190, whichever is lower
  • Aged between 22 and 40: one week’s pay, or £380, whichever is lower
  • Between 41 and retirement: one and a half week’s pay, or £570, whichever is lower
Please view our rates and thresholds page for all up-to-date figures.

 
 
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