Campaigns
Here at Nalo we believe in our nannies’ rights. Nannying is an industry which seems to be forgotten about when it comes to tax, equality and more.
So here we are, fighting your corner.
In 2017 we started the #GoGross campaign, with plenty more in the pipeline as we uncover more problems left unfixed within the nanny industry. Let’s raise awareness and make an impact.
Go Gross Campaign
We discovered that many nannies didn’t know the differences between net and gross pay. This prompted the Go Gross campaign to educate nannies, employers and agencies as to why gross pay is the most beneficial for everyone and to challenge why net pay is still so popular in the nanny industry.
We quickly discovered a catch 22 situation between nannies and agencies, with both sticking to the most common method. If nannies see jobs advertised in net, they consider this the norm, and in return always ask for net figures. We need to break this cycle.
No other industry works with net pay, and for good reason. Let’s bring nannies up to date and in line with other industries.
We hear a lot of panic from nannies when you start to discuss things in gross, as we are creatures of habit and anything a bit different can be scary. However whilst it can be useful to know exactly how much money you will be taking home each month, you can still work this out from your gross pay.
Net to gross is a bit trickier to work out, and nannies can often cost more than the employer realises if they agreed a net wage.
82% of nannies surveyed in The Nanny Lounge agree a gross wage in their contract (May 2020)
Gross
The total amount your employer pays you before any deductions.
Net
How much you take home after deductions.
Benefit of a Gross Wage Agreement
Below are just a few of the many benefits of agreeing a gross wage
Job Stability
Gross wages enable better job stability as the employers know how much their nanny is costing them from the beginning, and also ensures employers are not liable for paying nannies other taxes such as student loans or any unpaid tax from previous jobs.
Tax Free Allowance
Nannies paid net are missing out on the increase in tax free allowance each year, which has increased by £1,500 in the past 3 years alone. When paid gross, nannies will see a slight increase in their pay each year. If you are paid net, it’s the employers which benefit.
Pension Scheme
With the new pension scheme now in place, nanny employers paying net wages will be paying both their 3% contribution and their nannies 4%. This creates an issue if the nanny wants to increase their own pension contirubtion.
Job Market
When paid gross, you can compare your salary to other jobs as every other sector is paid a gross wage. It also makes it easier to compare nanny jobs, rather than some being advertised net and some gross. We need a clear set standard for our pay to enable us to assess the job specifications clearly and quickly.
HMRC
HMRC deal in gross figures only. They won’t recognise your net wage agreement and you will be liable for paying any unpaid taxes.
Banks and Loans
When it comes to applying for mortgages and loans, banks will want to know your gross figure and evidence of your payslips. They aren’t interested in net.
How Do I Make The Change?
First off, have a chat with your boss and explain how having a gross wage benefits you both. You can work out and agree your gross figure together. It should be stated on your payslips even if you are paid the net amount. Remember that your gross wage will be a higher number than your net wage, it isn’t a straight swop. You can also use a tax calculator to help you.
How Can I Support Your Campaign?
Tell everyone about us! Share our Go Gross posts on social media along with #GoGross and challenge any agencies you see advertising in net terms. Let them know that the industry is changing, are are becoming wiser. We want our wages in gross terms from the word go. No excuses!
Are you an agency already advertising in gross? Do you work within the nanny industry and support our campaign? Brilliant! Let us know you support our campaign and we’ll add you below.
Go Gross Campaign Supporters
Please feel free to share our #GoGross button on your website or social media to support our campaign
More Articles about #GoGross
Nannytax – The Ultimate Guide to Net vs Gross
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