How much should I pay my nanny?
We have now launched the 2019/20 edition of our Nannytax Nanny Salary Index which showcases the average gross salaries for Live-in and Live-out nannies across the UK.
Nannytax Nanny Salary Index 2019/20
If you are a nanny employer and unsure what salary you should be paying your nanny, you can reference our UK nanny salary map below.
Simply find your region and see the average gross salary for nannies in your area. You can see the nanny salary as an hourly/ weekly/ monthly rate or as an annual salary (based on a 50 hour working week).
London Nanny Salaries
London is the highest earning region in the UK for both Live-out and Live-in nannies.
See some of our average nanny salary data breakdown for London boroughs below:
- Live-out nannies in Central London earn an average gross wage of £14.50 an hour.
- Live-out nannies in Hertfordshire earn an average gross wage of £11.80 an hour.
- Live-in nannies in Surrey earn an average gross wage of £10.54 an hour.
- Live in nannies in Greater London earn an average gross wage of £10.02 an hour
You will require a full version of the 19/20 salary index report for extensive salary data breakdowns for Live in and Live out nannies across London and the rest of the UK. Receive via your chosen email address by filling out the form in the pop up window on this page. Alternatively please contact us and we can send you a copy directly.
UK Nanny Salary Trends for 2019/20
The table below displays the average gross salaries for Live-in and Live out nannies over the past 5 years and reveals the % change in comparison to the previous year's data.
Overall, our findings show that nanny salaries have seen a small decline when compared against the salary data collated in our 18/19 Salary Index. However this is no more than -4% and in some cases less than -1%. The only exception to this is that Live-in nannies salaries in the rest of the UK (outside of London) have increased from £8.32 p/h to £9.99 p/h (+17%).
- The average gross salary for a Live-out nanny in London has seen less than 1% drop in comparison to 18/19.
- The average gross salary for a Live-in nanny in London has seen a 3% drop in comparison to 18/19.
- The average gross salary for a Live-out nanny in the rest of the UK has seen a 4% drop since 18/19.
- The average gross salary for a Live-in nanny in the rest of the UK has seen a 17% increase since 18/19.
Part time Nannies
We have noticed an increase in demand for part time and particularly after school nannies recently. Therefore we have introduced some part time nanny salary data as a guide for families who require this type of childcare. This data is based on a 25 hour working week.
- London based live in nannies who work a part time arrangement earn an average gross salary of £9.28 which equates to £12,060 per year.
- London based live out nannies who work part time earn an average gross wage of £13.35 which equates to £17,359 gross per year.
Other Top Statistics
Live in vs Live out
A Live-in nanny is generally paid less than a Live-out nanny due to the additional provision of accommodation and access to other live-in facilities and amenities such as food. This year we found a massive proportion of our customer base have chosen to employ Live-out nannies.
Weekly vs Monthly Pay
As part of our Nannytax payroll service we can run nanny payslips either weekly or monthly. Our Salary Index data revealed 63% of our Nannytax customers pay their nanny monthly whilst 27% pay weekly.
Net vs Gross
All of the salary data published in our Nanny Salary Index is in Gross terms.
Nannytax strongly advise that employers contract their nanny with a Gross salary as opposed to a Net Salary (the nanny’s ‘take home’ pay). A fantastic statistic from our 19/20 Salary Index reveals that 76% of our customers have employed their nanny with a Gross salary agreement in place. This has risen by 18% from 58% in 2007.
Gross = Take home pay + Tax + NI + Pensions (if applicable)
Net = Take home pay (the amount the nanny receives after Tax, NI and Pensions deductions)
Agreeing a Gross Salary:
- Enables employers to budget more effectively as it incorporates additional costs such as tax, NI and pensions from the offset.
- Protects the employer from becoming liable for any of the nanny’s unpaid tax from the nanny’s previous jobs, court-order or child maintenance payments.
- Enables nannies to benefit from their tax-free allowance which usually increases each April.
- Means nannies can benchmark their salary with other professions such as their Early Years and childcare peers as almost all other industries talk in Gross terms.
You can read Nannytax’s ultimate guide to Net vs Gross here.
You can read about NALO’s #GoGross campaign here.
Nanny Salary Calculator
Remember you can always use our Nannytax Nanny Salary Calculator to convert a Net salary into a Gross salary and vice versa.
Once you've input your salary conversion request our calculator will also provide you with a full breakdown including Tax, NI and Pension plus your total cost of employment.
Nannytax are here to meet your nanny needs
We can provide you with a bespoke contract of employment, run your nanny's pay slips weekly/monthly and deal with HMRC - plus we offer additional services to ensure pensions and insurance are covered too.
With Nannytax you know the administration side of employing a nanny is taken care of and in safe hands.