The Hidden Costs of Hiring a Nanny — and How to Budget Smartly

Hiring a nanny is an investment — here’s how to plan for it confidently.

When comparing childcare options, the hourly rate is only part of the story. As a nanny employer, you also need to account for:

• Tax & National Insurance contributions

• Pension payments (typically 3% of qualifying earnings)

• Holiday pay, sick pay, and overtime

• Payroll service or software costs

It may sound like a lot — but when planned properly, it’s completely manageable.
Smart budgeting helps you stay compliant and fair to your nanny.

Start by:
1️⃣ Using a net-to-gross calculator (Hirelo’s system does this automatically).
2️⃣ Setting aside roughly 15 % above your nanny’s net pay to cover taxes.
3️⃣ Scheduling regular reviews of hours and pay.

With Hirelo, you always know exactly what you’re paying — no guesswork, no surprises.

Simplify nanny budgeting and payroll in one place. Try Hirelo today — £125 per year, all inclusive.