In pretty much every other profession the pay is always discussed using a gross salary agreement. However a lot of nanny jobs are still advertised and discussed in net salary. Last year, in 2017, NALO (The Nanny Lounge) started the Go Gross Campaign as they believe that nannying is an industry equal to all others and deserves the same rights and equality as other professions. A sentiment we whole heartedly agree with.
Why is talking about your salary in gross so important we hear you asking? Well lets break it down…
The importance and benefits for parents (employers)
- Know how much your nanny is costing you from the get go.
- You will not be liable for paying your nannies other taxes, including student loans etc.
- You will only pay your percentage of your nannies salary into their pension scheme. Which will keep it to between 1-3% instead of potentially 7% from April 2019 if you agreed on a net salary.
The importance and benefits for nannies (employees)
- You won’t loose out on the Tax-Free allowance which increases every tax year.
- Compare you salary to other professions in UK.
- Be safe in the knowledge that your employers know their total costs when hiring you so they won’t be caught out and realise suddenly that they can’t afford you.
If all nannies, parents and agencies start talking solely in gross then it will make it much easier for everyone at the end of the day.