When hiring a nanny, some families put all the focus on hours and base pay and overlook the equally important aspect of providing their nanny with employment benefits.
Like other professionals, most nannies expect—and should get—job benefits that guarantee them paid time off, mileage reimbursement and other perks that make their jobs more secure and worthwhile. Think of it this way: nannies have one of the most important jobs out there in raising your children and the next generation. Why shouldn’t they receive the same benefits other professionals get?
According to The Nannytax Salary Index 2021/2022, 39% of nannies work as full-time professionals in their field—and many of them have training and education in childcare-related subjects—but are all these nannies getting the benefits they rightly deserve?
Unfortunately, a lot of parents miss some basic things. If they’re working with a nanny agency, they’re going to be educated about them, but for families hiring on their own, many don’t realise that they should offer benefits.
While an extensive nanny benefits package is not a requirement for hiring, it’s important to remember that the nanny industry is highly competitive and ensuring the best quality childcare means being willing to provide standard employment benefits commensurate with a nanny’s skill level and experience. Here are 10 benefits you should consider offering when hiring a nanny.
The basics
1. Guaranteed pay and overtime
If you’re hiring a nanny, they’re signing up for a certain number of hours based on the number of hours you need as a family. They have bills, and those bills don’t change whether or not you get home early one night. It’s wise to guarantee your nanny a certain number of hours per week in your initial offer, as well as being prepared to offer overtime if a nanny is required to work more than 48 hours per week, or 40 if they’re under 18.
2. Sick days
If we’ve learned anything during the COVID pandemic, it’s that sick days are a must for any employee, but especially for nannies because they work closely with children.
How much paid sick time will your nanny get? By law, nannies are entitled to statutory sick pay (SSP) for up to 28 weeks from the fourth consecutive day of absence instead of, or as part of, the nanny’s normal rate of pay. The first three days are known as “waiting days” and any payment of salary to the nanny for these days is at the employer’s discretion, so you will need to decide how you will handle this.
It’s also a good idea to have a backup childcare plan in place. Nurseries are not always a viable option because slots fill up, and part-time care in a nursery can often be just as expensive as full-time care, especially for multiple children. Instead, you might do better to find a local in-home childcare provider who’s willing to work with you on an “à la carte” basis on the days your nanny can’t be in.
3. Paid time off
In the UK, almost all workers are legally entitled to 5.6 weeks’ paid holiday a year. You can check how much your nanny would be entitled to here. Make sure to specific whether the nanny can choose the dates or whether you will designate dates that fit around your own family holiday dates. This can help reduce the amount of time you have to find an alternative caregiver.
4. Paid public holidays
It’s important to note that paid time off does not include public holidays. Paid public holidays are a separate benefit, and it’s typical for families to offer public holidays as a benefit. Generally, if the public holiday falls on a nanny’s regular workday, then they receive it off, paid. If a nanny is required to work on a holiday, it’s common practice to pay them at a rate of time and a half.
Reimbursements and stipends
5. Mobile phone reimbursement
Some employers provide mobile phone reimbursements for nannies if the nanny is frequently required to use their personal phone on the job. One example is if a nanny travels with the family and must use their phone to communicate with parents, or if a nanny is required to give frequent updates to parents or coordinate playdates and other activities. One idea is to find out what the nanny’s mobile phone plan is, how much they’re using their phone for work-related purposes and decide on the appropriate amount.
As an employer providing mobile phones to your employees, you have certain tax, National Insurance and reporting obligations. For information on how to deal with reimbursements, please check the gov.uk website. Additionally, it may be helpful to check with your mobile phone provider about adding another line for the nanny. Many family phone plans will allow you to add an extra line at a very low or no additional cost.
6. Mileage reimbursement
Whenever a nanny uses their personal car for on-the-job transportation, they need to be reimbursed for the petrol used. This includes, for example, driving the kids to and from school, going food shopping, running errands and even driving the kids to and from a play date. They should keep track of their mileage and should be reimbursed with the current standard amount as per the Mileage Allowance Payments (MAPs).
Most nannies are paid Mileage Allowance Payments (MAPs) of 45p per mile; this is the maximum the UK government will allow without a reporting requirement or tax liability. Mileage is paid for up to 10,000 miles per annum at 45p per mile. In the unlikely event that you exceed this limit, the rate drops to 25p per mile.
Discretionary benefits
7. CPR certification
It’s a good idea for families to pay for their nanny’s CPR certification every three years. It’s not a must, but it’s worth the investment for the safety of your children.
8. Continuing education
Occasionally families will offer to cover the costs of continuing education, such as childcare or child development courses. While not a requirement, it can show that you’re invested in your nanny’s development as a professional—and your kids reap the benefits.
9. Annual bonuses
A bonus is a lovely way of showing appreciation for a nanny’s hard work and dedication, and it doesn’t have to be exorbitant. Many nannies appreciate simply having an extra week’s pay presented as an annual bonus at the end of each employment year or around the end of the year. Some employers, however, opt to pay a bonus of two weeks’ pay.
10. Extra perks
When it comes to benefits, think outside the box. Consider adding a nanny to your existing gym membership or offering them one Friday off per month if you’re able. Not only will perks like these help attract the best nanny, but they’ll help retain them, too.
Look at what you as a family have that the nanny might value. For example, use of your box suite at your team’s football stadium for any matches you cannot attend? A holiday house that is free for a long weekend along with a voucher for dinner? Consider using that to honour your nanny’s dedication and hard work. Just be sure and consult with your tax professional to ensure you are complying with any necessary reporting for tax purposes.
Most importantly, regardless of the benefits you decide to offer, make sure each is clearly outlined in your initial agreement with your nanny and don’t add any surprise duties or changes in benefits down the road.
First and foremost, a nanny wants to feel comfortable with the family they’ll be working with and that there are reasonable expectations of them. Remember: nannies have lives, too. Some have children or additional part-time work. They want to know they can still make it for important events, can take time out for a doctor’s appointment or go on holiday, just like you would want.
How should you keep track of overtime?
For any nanny who regularly works more than 48 hours a week (or 40 if they are under 18), set up a system to keep track of hours so both the employer and childcare provider know how much the nanny should be paid. You can use a time-tracking app or set up a shared spreadsheet using Google Drive to keep the nanny’s time on the clock organised. Then, come pay day, add up the extra hours and the agreed overtime rate.
