How should you pay your nanny?
By cash each week? By transfer at the end of the month? There are various options open to you. We don't charge extra for weekly pay, so you are free to choose whatever arrangement suits you and your nanny best. Read on for more information to help you decide, then tell your nanny in advance when and how she will be paid, and stick to that agreement so that she can plan accordingly.
Weekly or monthly?
Monthly pay
Most parents prefer to pay monthly, because they are used to budgeting monthly themselves. It also means that there is just one payslip to hand out each month and just one transfer to arrange (see payment methods below).
If you opt for monthly pay, think carefully about when pay day will fall and fix it there. It would be unfair on your nanny if you left it so late that she missed her standing orders. You could aim for the last working day in the month, or a few days earlier.
Whichever pay day you agree on, you will be paying the full calendar month, e.g. for the whole of the month of June. This means that if you do decide on an earlier pay day, you will be paying some of the wages in advance. Occasionally this can cause problems, for example if the nanny were to leave suddenly. Interestingly, French nannies often expect to be paid at the beginning of the month (so receive the full month in advance).
You will be paying the same amount each month, regardless of the number of calendar days. Monthly pay is calculated by multiplying the weekly wage by 52 to get an annual salary, then paying 1/12th of that salary each month.
Weekly pay
Your nanny may have a strong personal preference for weekly pay, depending on how she runs her personal finances. If you decide to pay weekly, we will send you 4 or 5 weeks payslips in advance at the beginning of each month, for you to hand out as the month progresses.
Fortnightly and 4-weekly
Try to avoid agreeing to these less common, non-standard pay frequencies if you can.
Cash, cheque or bank transfer?
Cash
Clearly there are handling drawbacks, but paying cash has one advantage: if you need to adjust the wages at short notice, perhaps because your nanny does not show up for work, you can do so with minimum fuss.
Cheque
Not the best option for your nanny. You could pay by cheque for the first month, while you are still getting transfers organised. If you do prefer this option, you could always hand over the cheque a few days early to give your nanny extra time to get it cleared.
Bank transfer
This is the most popular method, both for weekly and monthly pays. If you have agreed a fixed net pay with your nanny you can set up a Standing Order to pay automatically at the end of each week or month. Do remember to stop any standing order if your nanny leaves.
If you have fixed a gross pay instead of a net (often a fairer option), you may find that the net pay varies by pence each month. You can still use a standing order, but may have to top up the pence from your purse.
Alternatively, use an internet banking facility to arrange each transfer when the payslip comes in. This is also the best option if the net pay is to vary substantially, e.g. due to overtime or a changeable basic.
Childcare Vouchers
You may be lucky enough to participate in an employer-provided Childcare Voucher Scheme, in which case you will be paying part of your nanny's net pay in vouchers. The best schemes will enable you to transfer the value of the vouchers directly into her bank account. You can then pay the remaining net by cash, cheque or transfer. For example:
| Gross pay | £1216.67 |
| less tax | 135.20 |
| less NI | 81.47 |
| = Net pay | £1000.00 |
| Paid via vouchers | £243.00 |
| Balance by cheque | 757.00 |
| Total Net Pay | £1000.00 |