National Minimum Wage (NMW)

From 1st April 2016 the National Minimum Wage rates are:

Age of employee Hourly minimum wage (gross)
16-17 £3.87
18-20 £5.30
21-24 £6.70
25+ £7.20

Almost all workers are entitled to by law to recieve the National Minimum Wage and it is a criminal offence to pay below the current hourly rate (except for exemptions). If caught paying below the National Minimum Wage, the employer could incur substantial fines.The hourly rate depends on the employee's age.

Nannies who are exempt from the National Minimum Wage

Live-in nannies are exempt provided she lives as part of the family household, is treated as a member of the family and is not provided with separate accommodation. For employers who provide separate accommodation for their employees there is an allowance per 7-day week, which can be offset against the minimum hourly rate, this allowance is currently £37.45 per 7 day week.