Nannies & pensions

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smk450
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Nannies & pensions

Postby smk450 » Tue Jan 31, 2017 12:45 pm

What are other mums/employers of nannies doing about compulsory workplace pensions for their nannies? Expecting to manage it through payroll provider but it is an additional cost (both the pension and the management of it) for an additional benefit for the nanny. Is anyone asking their nanny to take a hit to their salary to cover it?
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Buddybear
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Re: Nannies & pensions

Postby Buddybear » Tue Jan 31, 2017 1:21 pm

I am interested in hearing replies too!

I have a staging date of 1 Feb and I have childcare provided by 2 lovely nannies both for just a few hours a week. I understand that it is up to them to decide whether or not they want a work place pension. I am happy to do this but not sure whether it is the right thing for them especially as they both have small children and might change career when their children are at school.

The other concern I have is of non-compliance. I already know a fair few individuals who avoid paying any tax on their childcare. Maybe this further cost will mean even more nannies missing out of NI contributions/maternity pay etc..

In addition, at some point it becomes untenable to work unless you are on a huge salary. I have a professional job on a reasonable salary but after childcare am earning practically nothing (even less once I start paying pension contributions).
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pie81
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Re: Nannies & pensions

Postby pie81 » Tue Jan 31, 2017 3:33 pm

I'm not an employment lawyer but I don't believe you can legally ask your existing nanny to reduce her salary to accommodate the pension.

The most you can do is not give a pay rise/bonus (assuming you would have given one otherwise) to accommodate the extra outlay. Reducing her salary would be constructive dismissal. Of course if your existing nanny leaves you can choose to try to employ a new nanny on a lower salary.

I agree with Buddybear about non compliance. This will just open up a further gap between the responsible employers who pay properly and those who don't. Tempting more people into paying "under the table". And I also agree that this will make it even more unaffordable to employ a nanny, unless nanny pay expectations go down to compensate, in which case what was the point of the new rules ...
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2009Kat
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Re: Nannies & pensions

Postby 2009Kat » Tue Jan 31, 2017 4:37 pm

I haven't even looked into whether I can technically ask my nanny to reduce her salary, I am just going to pay on top. She has bills, mortgage to pay so can't take a cut and in any event I don't think it is fair to ask. Mind you, she's been with us for a while - if I was looking for a new nanny I would take into account in salary discussions.
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denshort
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Re: Nannies & pensions

Postby denshort » Tue Jan 31, 2017 5:41 pm

My company offered cash in lieu of a pension scheme before the mandatory workplace scheme came in. When it was introduced in HR were extremely careful about what they said about it. They weren't allowed to advise us to choose either way and could you imagine if they had told us we had to take a salary hit!? I'm not an employment lawyer but I suspect it's completely outrageous (not to mention illegal and immoral) to ask your nanny to do this.
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papinian
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Re: Nannies & pensions

Postby papinian » Tue Jan 31, 2017 5:55 pm

I'm not aware of any particular rule that a nanny should be afforable or affordable to people of a certain income. A number of posts on this thread smack very much of middle class entitlement. If you think compulsory workplace pensions are an issue just wait another few years after Brexit has happened and see where supply of nannies / au pairs has gone.
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Buddybear
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Re: Nannies & pensions

Postby Buddybear » Tue Jan 31, 2017 8:12 pm

ha, ha nice try Papinion!

Happy to contribute to a nanny pension personally but I feel that it will lead to more employers not paying tax or going down the au-pair (but basically working as a nanny) route. So more lower paid workers (mainly young and female) exploited.

Also, the government is very keen for women to continue working when they have children but it becomes more and more difficult unless you have local family support.

While I personally still hope that Brexit never happens I think that nannies will still be able to work in London pretty freely. I think there is more chance of the au-pair route being used more and more and less nanny roles being available.
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papinian
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Re: Nannies & pensions

Postby papinian » Tue Jan 31, 2017 8:28 pm

Buddybear wrote:While I personally still hope that Brexit never happens I think that nannies will still be able to work in London pretty freely. I think there is more chance of the au-pair route being used more and more and less nanny roles being available.
I started a thread on this a few weeks ago. The consensus was that unless the current visa rules are changed overseas nannies and au pairs will pretty much dry up post-Brexit. There is no longer such a thing as an au pair visa. The very large majority of au pairs over the past five years have come from the EU. Those from Oz and NZ have come on working holiday visas (some ancestry visas) but will be able to get better paid jobs in a constricted labour market (especially given native English speakers).

I also hope that Brexit never happens, but I don't see any reason to think that it's not going to.
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