Gross wage, net wage? What does it mean and why does it matter? All we are ultimately interested in is how much we have in our pocket at the end of each pay period, right?
Wrong. It is true that the practice of agreeing a net (take-home) wage at the start of a job is still widespread among nannies, their employers and agencies. But it comes from a time when nannies were considered not much more than the live-in 'help', and employers were not expected to pay income tax and National Insurance Contributions (NICs) on their behalf. These days, not agreeing to pay a gross wage, from which tax and NI are deducted, is not only unprofessional - it can have serious consequences for both nanny and employer.
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