Do I need to pay my nanny National Minimum Wage?
All UK employees, including nannies, are entitled to National Minimum Wage, and as an employer you could face serious legal repercussions if you are found to be non-compliant with the latest minimum wage rates.
What is National Minimum Wage?
The National Minimum Wage is the minimum pay per hour employees are entitled to. For employees aged over the age of 21, this is referred to as the National Living Wage.
- National Living Wage (NLW) for those aged 21 and above
- National Minimum Wage (NMW) for those under the age of 21
Do I need to pay my nanny Minimum Wage?
Yes, you are legally required to pay your nanny at least minimum wage. You can choose to pay more than minimum wage.
See our Salary Index for the average hourly rates for nanny salaries across the UK.
What is the current National Minimum Wage?
As of 5th April 2024 the National Living Wage is £11.44, but this will increase to £12.21 in April 2025.
The minimum wage is updated in the April of each year, please see here for the latest NMW and NLW rates.
What will happen if I don’t pay my nanny Minimum Wage?
If HMRC find that you have not been paying your nanny minimum wage, they can take any of the following actions against you:
- Issue a notice for you to pay your nanny the money they are owed, going back a maximum of 6 years.
- Issue you a fine of up to £20,000, and a minimum of £100 for each nanny affected, even if the underpayment is worth less.
- Take legal action against you including criminal proceedings
- Pass on your name to the Department for Business and Trade (DBT), who may put you on a public list.
Source: ACAS
How do I check if I’m paying my nanny minimum wage?
To check that you are paying your nanny minimum wage, you can use GOV.UK’s National Minimum Wage and Living Wage calculator for employers.
How can Nannytax help?
We offer a fully comprehensive Nanny Payroll & HR service and our award-winning team is on hand 7 days a week to support you throughout the employment of your nanny, including changes to legislation.
