1 October 2004
National Minimum Wage to increase
The National Minimum Wage (NMW) increases from £3.80 to £4.10 per hour gross for employees aged 18-21 and from £4.50 to £4.85 per hour gross for employees aged 22 and over on October 1 2004. A new rate of £3.00 per hour gross for employees between 16 and 17 will also be introduced at this time. In most cases it is a criminal offence to pay below the NMW carrying a fine of up to £5,000.
If your nanny lives as part of the household and is not provided with separate accommodation, she is excluded from the NMW. For employers who provide separate accommodation for their employees there is an allowance of £26.25 per 40 hour week or more, which can be offset against the NMW hourly rate.
As an employer you are required by law to give your employees regular payslips, which should show the gross wage and the tax and NI deducted to arrive at their net pay. To make sure that you are paying your nanny at least the minimum wage, simply divide her gross weekly salary by the number of hours worked.