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Net wage agreements - an introduction

Nannying is one of the last professions left in the UK where wages are still commonly agreed on the basis of net (i.e. take-home) pay. It is surprising that despite the growing professionalism of nannies net pay arrangements are still so common. Especially when you bear in mind the financial implications at stake, both for the employer and the nanny.

Nannytax has been advising parents, nannies and nanny agencies to always discuss and agree salaries in gross terms for many years, yet we frequently receive calls from potential employers who are always agree a gross salary unaware of the real cost involved with employing a nanny. Once they find out that the difference can be as much as 40% many realise they can't afford to employ her at all, or they decide to only declare part of her salary in an attempt to save money, which not only is illegal but also has real-life implications for the nanny.

Have a look at the articles within the 'net wage agreements' section to get a better understanding of the drawbacks of a net wage agreement from both the nanny's and employer's perspective. If you have any questions, please don't hesitate to get in touch with us on 0203 137 4402 or email This email address is being protected from spambots. You need JavaScript enabled to view it. .

Read more about the pitfalls of a net wage agreement: