When hiring a nanny, it’s important to understand their entitlement to statutory payments, including maternity pay, sick pay, and other employment rights. As an employer, you are responsible for ensuring your nanny receives the benefits they are entitled to under UK employment law.
What Statutory Payments Are Nannies Entitled To?
Statutory Sick Pay (SSP)
If your nanny is unable to work due to illness, they may be eligible for Statutory Sick Pay (SSP). Employers must pay SSP if:
- The nanny has been sick for four or more consecutive working days.
- They earn at least £123 per week (before tax).
- They have notified you about their sickness within the required timeframe.
Employers can not typically reclaim SSP from HMRC.
Statutory Maternity Pay (SMP)
If your nanny becomes pregnant while employed, they may qualify for Statutory Maternity Pay (SMP). To be eligible, they must:
- Have worked for you for at least 26 weeks by the 15th week before their due date.
- Earn at least £123 per week (before tax).
- Provide you with a MATB1 form from their doctor or midwife
SMP is paid for up to 39 weeks:
- The first 6 weeks at 90% of their average weekly earnings.
- The remaining 33 weeks at £187.18 per week (or 90% of their average weekly earnings if lower).
Small employers can reclaim all of the SMP from HMRC. Get in touch to discuss your obligations.
Other Statutory Payments
In addition to SSP and SMP, your nanny may be entitled to:
- Statutory Paternity Pay (SPP) – If they qualify, paternity pay is usually £187.18 per week.
- Statutory Adoption Pay (SAP) – If adopting, nannies may receive 39 weeks of adoption pay, similar to maternity pay.
- Statutory Neonatal Care Pay (SNCP) – This is a benefit that provides financial support to parents of babies who require neonatal care. It’s available to eligible employees who meet certain service and earnings criteria.
- Holiday Pay – Nannies are entitled to at least 5.6 weeks of paid holiday per year, based on their working schedule.
How Much Does a Nanny Cost?
Understanding statutory payments is essential when calculating how much a nanny costs. As an employer, you must consider:
- Basic salary
- Tax and National Insurance contributions
- Pension contributions (if applicable)
- Statutory payments such as SSP and SMP
Let PAYE for Nannies Handle the Hard Work
Navigating statutory payments for nannies can be complex, but PAYE for Nannies makes it simple. We handle:
- Payroll calculations and payslips
- Statutory sick pay insurance and claims
- Maternity and paternity pay processing
- HR support for nanny employers
