Why You Should Be Advertising a Gross Wage
As a nanny agency you need to balance keeping your clients happy as well as the nannies on your books. Here we’re letting you know why you should be adverting a gross wage for your nanny positions.
Discussing wages in net can be somewhat confusing. It may lead to clients misunderstanding and not fulfilling their tax obligations, being hit with a larger cost than expected if their nanny has student loans or similar responsibilities, offering all or part payment in cash, or being footed with paying both theirs and the nanny’s pension contributions.
A client who previously thought they were within budget with the nanny you provided may suddenly realise a few months down the line they can no longer afford their childcare.
Advertising wages in net and then adding gross into the contract can also cause issues – especially if the contract states both net and gross wages. These figures will never align as there are too many factors to take into consideration.
If you advertise a position in net and agree a contract in gross without knowing the nanny’s tax status, when they receive their first paycheck the net may be less than agreed which will lead to disagreements.
You want to happily place a nanny for your client, without either of them coming back to you soon after because the wages are not as they had anticipated.
88% of nannies surveyed (The Nanny Lounge, November 2018) agreed a gross wage in their contracts.
Gross wages help to improve the status of nannies so there are no misconceptions about nannies being paid cash in hand. The majority of industries in the UK advertise and agree wages in gross terms. By advertising gross wages you are enabling nannies to compare not only nanny jobs with more ease, but also jobs across other industries fairly.
This also enables employers to see the going rate for employing nannies and the costs involved.
We feel it is vital that every one is on board with providing and promoting gross wages to support the nanny industry as a profession.
We have set up the #GoGross to open conversation about Gross pay. Please use the hashtag to let others know you are on board with us.