Nanny salaries can vary enormously and depend on many factors. However, there are general guidelines you can follow when deciding how much to pay your nanny, and the information below should help you work out a fair salary.
Factors Affecting Pay
Many factors affect how much you should offer your nanny. You will need to take all of these into consideration when working out a salary package:
- Live in or live out? A live-in nanny receives full board and lodging at your expense, so this is factored into the salary. Live-out nannies typically earn more in take-home pay to cover their own housing and travel costs.
- Full time or part time? If part time, you will need to calculate a full-time equivalent salary and offer a pro rata amount.
- Nanny share? If you are sharing a nanny with another family, you will need to agree the salary split carefully. An unequal pay arrangement could cause problems.
- Qualifications. There are various levels of nanny qualification, from NVQ Level 3 to Norland diplomas. Better qualified nannies command higher pay.
- Experience. Experienced nannies with strong references will expect to earn more. A newly qualified nanny will start at the lower end of the pay scale.
- Temporary or permanent? Temporary nanny placements are often priced at a higher hourly rate than permanent salaried positions.
- Location. There is a significant London weighting. Nannies working in London and the Home Counties will expect 15–25% more than those in other parts of the UK.
- Employment status. If you are acting as your nanny’s employer (which is the case for most families), you will need to factor in employer’s National Insurance, pension contributions, holiday pay, and statutory sick pay on top of the gross salary.
Wage Quotes
Nannies can be paid hourly, weekly, or monthly depending on their contract. Salaries are traditionally quoted as net (take-home) amounts in the nanny industry, but it is important to be clear with your nanny whether you are discussing net or gross pay. As the employer, you are responsible for operating PAYE and paying the gross amount plus employer’s NI.
National Minimum Wage and National Living Wage (April 2025)
All nannies must be paid at least the National Minimum Wage or National Living Wage. The current rates from April 2025 are:
- £12.21 per hour – age 21 and over (National Living Wage)
- £10.00 per hour – age 18 to 20
- £7.55 per hour – under 18
- £7.55 per hour – apprentice rate
These rates are reviewed annually each April. You can check the latest rates on the GOV.UK website.
Typical Nanny Salary Rates (2025/26)
For a full-time nanny position of 40 to 50 hours per week, typical salary ranges are:
- Live-out nanny (outside London): £500–£700 net per week (£26,000–£36,400 per year)
- Live-out nanny (London): £600–£900 net per week (£31,200–£46,800 per year)
- Live-in nanny (outside London): £400–£550 net per week (£20,800–£28,600 per year)
- Live-in nanny (London): £500–£700 net per week (£26,000–£36,400 per year)
Daily or temporary nannies typically charge £12–£18 net per hour depending on experience and location. Rates for overnight care, bank holidays, and additional children may be higher.
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Employer Costs
Remember that the net salary your nanny takes home is not the full cost to you as the employer. On top of the net salary, you will need to budget for:
- Income tax and employee NI – deducted from the gross salary via PAYE
- Employer’s National Insurance – currently 15% on earnings above £175 per week
- Workplace pension – minimum 3% employer contribution under auto-enrolment
- Holiday pay – minimum 5.6 weeks paid holiday per year
- Statutory Sick Pay – if your nanny is off sick
As a rough guide, a nanny earning £500 net per week will cost you approximately £650–£700 per week in total once tax, NI, and pension are included. Many families use a payroll service such as Nannytax or PAYE for Nannies to handle this.
Benefits in Kind
Many nannies receive additional benefits as part of their package, which can be valuable when negotiating salary. Common benefits include use of a car for personal use, a mobile phone, separate accommodation, additional paid leave beyond the statutory minimum, private health insurance, gym membership, and preferential overtime rates.
The Nanny Job Market
The demand for qualified nannies remains strong across the UK, particularly in London and the South East. Post-pandemic, many families have re-evaluated their childcare arrangements, and there has been a shift towards more flexible working patterns for nannies. Salaries have increased steadily in recent years, outpacing inflation in many areas, driven by high demand and a limited supply of experienced, qualified candidates.
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