Au Pairs & Minimum Wage
The government has passed a ruling which states that au pairs are no longer exempt from national minimum wage.
This is a significant change. Somewhat unhelpfully, there is no clear confirmation on when the changes kick in but to be safe, I would expect the timeline to follow when the general NMW rates go up (1 April 2022).
Please see column 5 and specifically the following paragraph:
I will announce another change to the regulations that we will shortly bring forward. Last year, we asked the Low Pay Commission to gather evidence on the use of the live-in domestic worker exemption to minimum wage entitlement, which exempts employers from having to pay the minimum wage to workers who live in the employer’s home and are treated as part of the family, such as au pairs. The Low Pay Commission heard evidence from au pairs, domestic workers, and agencies for those workers. The commission concluded that the exemption is not fit for purpose, and recommended that it be removed.
We have accepted that recommendation, and will introduce legislation to remove the live-in domestic worker exemption when parliamentary time allows.
What does this mean to you?
If you are hosting an au pair who is aged 18-20 via Smartaupairs, you will most likely already exceed the national minimum wage requirement. The greatest impact is likely to affect older au pairs.
To follow the NMW guidance from April 22.
National Minimum Rates: https://www.gov.uk/national-
Weekly Accommodation Offset: The amount you can deduct, weekly, for accommodation: £60.90 https://www.gov.uk/
Minimum Weekly Pay for 18-20 Year Old Au Pair/Live in Child carer:
25 hours per week: £6.83 times 25 minus £60.90 = £109.85
30 hours per week: £6.83 times 30 minus £60.90 = £144
Hourly Rate: £6.83
Minimum Weekly Pay for 21-22 Year Old Au Pair/Live in Child carer:
25 hours per week: £9.18 times 25 minus £60.90 = £168.60
30 hours per week: £9.18 times 30 minus £60.90 = £214.50
Hourly Rate: £9.18
Minimum Weekly Pay for 23 + Year Old Au Pair/Live in Child Carer
25 hours per week: £9.50 times 25 minus £60.90 = £176.60
30 hours per week: £9.50 times 30 minus £60.90 = £224.10
Hourly Rate: £9.50
The same formula applies if you require more/less hours.
You are always advised to seek indepdent advice when it comes to TAX/NI matters.