Nanny Salaries - Gross v Net

Let’s talk Nanny Salaries: GROSS v NET

Savernake Nannies host an active Nanny Agency facebook group called The Nanny Agencies Consortium and we recently conducted a poll to establish how many of our agency members advertised salaries in Gross or Net.

Total number of agencies in the group: 36 (When poll took place)

Total number of agencies who advertise in GROSS: 14

Total number of agencies who advertise in NET: 0

Total number of agencies who advertise in a Mix of GROSS and NET: 1

As we didn’t further question their chosen method of advertising salaries , we know how incredibly busy Nanny Agencies are, we are unable to understand the reasoning behind the responses and even more so by the low number participating, particularly as it was just a one question survey! We were pleased to discover that our members, who took part in the poll, are using GROSS to advertise their salaries and we hope that this will soon be the "norm" amongst Nanny agencies

Savernake Nannies always advertise nanny salaries in Gross. It is an employer’s legal responsibility to deduct tax, NI, pension contributions and student loan payments from the gross salary.

Savernake Nannies advise employers to use a dedicated nanny payroll provider.

Savernake Nannies has no association with nanny payroll providers and therefore make no recommendations. There are a number of reputable dedicated providers such as Payroll for Nannies, Nanny tax, Way2Paye and Pay my Nanny.

At Savernake Nannies we believe that the Nanny sector is behind all other industries in the way jobs are advertised.

We contacted Emma George who is the founder of the #gogross campaign. Please see below edited version of Emma’s response

#gogross campaign

“Thank you so much for starting this conversation in your Nanny Agencies Consortium. Please do let me know how your poll turned out - I am very curious!”

I set up the Go Gross campaign in 2017 to put a stop to the catch 22 cycle both nannies and agencies found themselves in

Agencies were advertising salaries in NET and therefore nannies were seeing this as the norm. Nannies are professionals yet some were still being paid NET wages as pocket money, with many not understanding any of the implications of their tax or how other industries discussed salaries in GROSS.

The Go Gross campaign has educated nannies on the benefits of agreeing a GROSS wage, and we are pleased to see that in the latest Nanny Tax survey 76% of nannies had a GROSS wage agreement in place.

As a nanny agency, you have the job of balancing both clients and nannies needs. GROSS wage agreements can help your clients have a clearer understanding of the costs involved with employing a nanny & being an employer and vanquish any ideas they have around paying nannies cash in hand.

This offers your client longevity with their nanny as they are able to offer a wage within their budget and there are fewer unforeseen expenses.

GROSS wages make it easier for agencies, clients and nannies to clearly see the salaries on offer and compare GROSS wages in various different positions to ensure they are in line with the market rate, as well as many more benefits.

With the majority of nannies now asking for and agreeing GROSS salaries, advertising GROSS wages in your job vacancies will show your agency is up to date with practices and has an understanding of the modern nanny profession.

Savernake Nannies would like to thank Emma from #gogross campaign for contributing to this blog.

Whilst every effort has been made to ensure that the information included in this article is accurate at the point of release this should not be relied upon as legal advice. It is the opinion of Savernake Nannies. Copyright 2020

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