Nanny Wages

Nanny wages in the UK can vary significantly based on factors such as location, experience, qualifications, and the type of work arrangement (live-in or live-out). There is no strict wage guidance, however, below is an overview of typical nanny wages:

Average Nanny Salaries in the UK (October 2024)

 

Live-Out Nanny (Full-Time)

London: £18-25 gross per hour
Rest of the UK: £16-18 gross per hour
Annual Salary: £40,000–£60,000 in London, £30–£40,000 elsewhere

Live-In Nanny (Full-Time-Based on 60 hours)

  • London: £616.40–£920 gross per week 
  • Rest of the UK: £616–£775 gross per week 
  • Annual Salary: £32,032–£40,000 gross per annum

Please Note:Live-in nannies typically receive accommodation and meals as part of their package, so their net salary might be lower than live-out nannies but with fewer personal expenses. The National minimum wage is £11.77, and must be applied, but employers can apply the offset live in allowance. Rates will go up to £12.21 per hour from April 2025. 

Part-Time Nanny

  • Hourly Rate: £18-25 gross per hour (depending on location and experience)
  • Annual Salary: Varies depending on hours worked

Temporary Nannies

  • Hourly Rate: £18-25 gross per hour

Maternity Nanny/Night Nanny

  • London: £25-30 gross per hour (for night work or maternity duties)
  • Rest of the UK: £20-£25 gross per hour
  • 24 Hour Rate London – £325-£425 gross for singles, more for multiples.

Factors Affecting Nanny Pay

  • Location: Nannies in London and major cities tend to earn more due to higher living costs.
  • Experience: Nannies with more years of experience and specialized skills (like bilingual abilities or SEN expertise) can command higher wages.
  • Qualifications: Nannies with certifications such as those from Norland College or holding a Level 3 childcare qualification can earn more than those without.
  • Additional Responsibilities: Nannies who also manage household tasks, cook, or travel with families may earn higher wages.

It’s important to remember that many nannies also receive additional benefits such as paid holidays, bonus pension contributions, and overtime pay, especially for full-time positions. Families and nannies typically negotiate wages based on the family’s needs and the nanny’s skills.

Pay rises

Guide on Salary Increases

Are you considering giving your nanny a pay increase/a Nanny considering asking for a pay increase, but unsure where to start? Our latest blog breaks down everything you and your employer needs to know, from recognising performance and loyalty to adjusting for the cost of living and new responsibilities. Discover how to show your appreciation and retain a skilled, dedicated nanny. Don’t miss out—read the full blog  in our blog section!

 

Recommended Payroll Companies for Nannies

When employing a nanny, it’s important for families to manage their nanny’s pay correctly, including registering as an employer with HMRC, handling tax, National Insurance (NI), and workplace pensions. Many families opt to use professional nanny payroll services to simplify this process. These companies ensure compliance with UK employment laws, saving both time and effort.
Here’s a breakdown of what nanny payroll companies do and a list of recommended providers:

What Nanny Payroll Companies Do

Register Employers with HMRC. When a family hires a nanny, they become an official employer, and they must register with HMRC (Her Majesty’s Revenue and Customs). Payroll companies manage this on the employer’s behalf to ensure they are compliant with UK employment law.

Calculate Tax and National Insurance. Payroll providers calculate the nanny’s tax and National Insurance contributions (both employer and employee portions). They ensure the correct deductions are made from the nanny’s salary and paid to HMRC.

Generate Payslips. Payroll services generate accurate payslips for each pay period, outlining the nanny’s gross salary, deductions (tax, NI, pension), and net pay.

Manage Workplace Pensions. Under the UK’s auto-enrolment laws, employers must provide a workplace pension for their nanny. Payroll companies handle the setup and administration of the pension scheme, ensuring legal compliance.

Submit Real-Time Information (RTI). Employers must submit pay information to HMRC in real-time, each time they pay their nanny. Payroll services manage these submissions, preventing any issues with late or incorrect reporting.

Offer Ongoing Support. Payroll companies often provide ongoing advice and support on issues such as statutory sick pay, holiday pay, and maternity leave. They also help with end-of-year tax filings.

Recommended Nanny Payroll Companies in the UK

nannytax company logo

Nannytax

One of the most well-known nanny payroll companies in the UK, Nannytax offers comprehensive payroll services, including tax calculations, payslips, and pension management.

Services: HMRC registration, tax and NI management, payslip generation, pension setup, holiday pay calculations.

Website: nannytax.co.uk

nannytax company logo

NannyPaye

NannyPaye offers straightforward payroll services, making it easy for families to manage their nanny’s wages and legal requirements. They assist with tax, NI, pension, and HMRC paperwork.

Services: Employer registration with HMRC, tax and NI calculations, pension contributions, payslip generation.

Website: nannypaye.co.uk

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Taxing Nannies

Specializing in nanny payroll, Taxing Nannies has been helping families with payroll services for over 25 years. They handle all legal and tax obligations on behalf of the employer.

Services: Payroll management, pension setup, holiday pay, maternity pay, tax advice.

Website: taxingnannies.co.uk

Way2Paye logo

Way2Paye

Waye2paye provides friendly and reliable payroll services for families employing nannies. Their service includes registering employers with HMRC, handling tax, NI, and pensions, and generating payslips.

Services: HMRC registration, tax and NI calculations, pension management, payslips, holiday pay advice.

Website: waye2paye.co.uk

 

Way2Paye logo

Nanny Matters

Nanny Matters offers a specialized payroll service focused on nannies and domestic staff, ensuring that families meet all legal and tax obligations. They assist with payroll management, pensions, and more.

Services: HMRC registration, tax and NI calculations, payslip generation, pension setup, employment law advice.

Website: nannymatters.co.uk

Pink Payroll Logo

Pink Payroll

Pink Payroll provides a full payroll service for families employing nannies, ensuring compliance with HMRC regulations. They offer tax and pension management, payslip generation, and ongoing support.

Services: HMRC registration, payroll management, pension setup, tax and NI calculations, payslips.

Website: thepinkpayrollcompany.co.uk

Why Use a Payroll Service?

Using a nanny payroll company ensures that all legal obligations are met and reduces the risk of mistakes that could lead to fines or legal issues. It also saves families the hassle of navigating complex payroll regulations. Whether you are hiring a full-time or part-time nanny, a payroll service can take care of everything from HMRC registration to providing monthly payslips.

By using one of these recommended payroll services, families can enjoy peace of mind knowing that their nanny’s pay and employment are being handled professionally and in full compliance with UK employment laws.

 

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