Be prepared for the National Living Wage

March 17, 2016

The cost of employing a nanny set to rise

If your nanny is over the age of 25 he or she will qualify for the National Living Wage (NLW), which is £7.20 an hour, before deductions for National Insurance and tax.

This gives nannies who were earning National Minimum Wage (NMW) a rise of 50p per hour. That’s a £910 a year increase in earnings for a full-time nanny on the current NMW.

Nannies below 25 and over 21 will continue to be entitled to NMW of £6.70, 18-20-year olds will get £5.30, under 18s £3.87 and apprentices £3.30.

But from 1 October 2016 NMW rates are set to increase again following recommendations by The Low Pay Commission.

The Government takes a dim view of any employers found to be paying workers below the minimum wage and publishes a name and shame list every quarter.

The National Living Wage website takes you through the steps you need to take to make sure you’re paying your nanny enough money.