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Holiday Pay Gross Vs Net | Nannytax

Holiday Pay

All employees including nannies have a legal minimum holiday entitlement. As a nanny employer you must state your nanny’s holiday allowance in the contract of employment and administer holiday pay where due. So how much holiday is your nanny entitled to? This depends on whether they work full time or part time.

Full-Time Nanny

A full-time employee is entitled to a minimum of 5.6 weeks (28 days) of paid annual leave. This includes the 8 UK bank holidays. Employers can choose to offer more than the legal minimum if they wish. The same rules apply for full-time temporary nannies.

Part-Time Nanny

Part-time nannies are also entitled to 5.6 weeks paid holiday in proportion to their work hours (also known as ‘pro-rata’). You can use our holiday entitlement calculator to work this out. The same rules apply to part-time temporary nannies.

The Nannytax Holiday Calculator

Use the Nannytax holiday entitlement calculator to work out how many days or hours holiday your nanny is entitled to.

Accruing Holiday

We recommend that holiday is taken as it has been accrued but this is ultimately at the employer’s discretion. Your nanny’s holiday will accrue from their first day of work.

Holiday when a Nanny Leaves

If your nanny is leaving but has not taken all their accrued holiday, this must be paid in lieu and reflected on the final payslip. Alternatively, if the nanny has overtaken any of their accrued holiday then the employer has the right to deduct this from the final payslip.

Going on holiday

Are you planning on going on holiday with your family and wondering what the rules are around taking your nanny with you or administering holiday pay?

We’ve highlighted your options here.

Taking your nanny on holiday with you add remove

It is common for families who employ nannies to take their nanny on holiday with them however the contract of employment must include a relevant clause. This should explain that the nanny is required to accompany the family on holiday as part of their duties, which may involve travel abroad. We have a standard clause regarding travel written into all of our Nannytax nanny employment contracts.


If the nanny is travelling to carry out their childcare duties, they are working and therefore this won’t affect their holiday allowance. In fact, if working longer hours or additional days, the employer may need to compensate by providing additional time off in lieu.

Not taking your nanny on holiday with you add remove

If you’re going on holiday and you’re not planning on taking your nanny with you, depending on what’s been agreed in the employment contract, you may still have to pay them.


If you have agreed to split your nanny’s holiday entitlement, for example 50/50, this would mean that 50% of your nanny’s holiday is chosen by you, and the other 50% is chosen by them. In this case, you may have agreed for your nanny to take holiday whilst you’re away and you will only need to administer holiday pay.


If you have not agreed to split your nanny’s holiday entitlement and your nanny is not due to take holiday while you are away, you will need to pay your nanny in full as they are available and willing to work.

Bank Holidays

Bank Holidays are included in the 28 days entitlement. Therefore, if a nanny takes a Bank Holiday day off, it will be deducted from their holiday entitlement. If a part-time nanny does not normally work on a day in which a Bank Holiday would fall, then the Bank Holiday does not affect their entitlement.

Bank Holidays do not have to be taken and the days holiday can be taken at another time, providing an agreement has been reached between the nanny and the employer.

Please note that whilst Her Majesty Queen Elizabeth II’s Jubilee and State Funeral are national bank holidays, there is no statutory entitlement to time off. This should be agreed upon by the employer and employee.

Nannytax and Holiday Pay

Once you subscribe to our Nannytax payroll service we can calculate your nanny’s holiday entitlement if you require further assistance. Our HR team will write this into your bespoke contract of employment and the payroll team will reflect any holiday pay on your nanny’s payslips. Plus if your nanny leaves we will work out if any untaken holiday pay is due or if any money is owed due to overtaken holiday.

Speak to a Nannytax advisor today or alternatively get going and set up your nanny payroll now.

You might also be interested in

Sick Pay

All employees have the right to time off work if they are unwell. If your nanny calls in sick for the fourth day in a row, you are responsible for administering the Statutory Sick Pay.

Maternity Pay

If your nanny falls pregnant, there are certain legal procedures that you need to follow when it comes to the maternity leave.

Parental Leave

Shared parental leave enables parents or carers to share up to 50 weeks of leave and up to 37 weeks of pay if they are having a baby or adopting a child.