The UK government has announced changes to Employers National Insurance contributions from April 2025.
What's changing for employer national insurance?
Two main things will change from 1 April 2025:
- If nannies earn over £5000 from April 2025 you will need to pay Employers National Insurance. Currently the threshold is £9100 a year.
- The amount of Employers National Insurance you will pay is going to rise. The current rate of 13.8% is rising to 15%.
How do Employers National Insurance contributions work?
Currently all employers pay 13.8% in Employer National Insurance contributions (NICs) for employees who earn over £758 per month. From April, this will increase to 15% for employees who earn above £417 per month.
This means more employers will now have to pay Employer NICs, at a higher amount, on more of their employees wages.
Here’s a quick example, if you employ a part time nanny for 15 hours a week for £16p/h; the Employer NIC requirement will increase from £39 per month to £93 per month.
What about Koru Kids nannies?
Koru Kids nannies have an hourly rate that covers all your employer costs, including Employer NICs. If you need to be registered as an employer and pay Employers NICs we will do this on your behalf. We’ve set our nannies hourly rates so you pay a predictable monthly amount even if Employers NICs fluctuate through the year.
Will this affect me as a nanny employer?
If you employ a nanny and for any month of the year they are paid more than £417 then this change will impact you.
If you employ a nanny for a few afternoons or less than 7 hours a week then you are unlikely to be affected by the changes as they’ll still come underneath the threshold, but it depends how much they earn per hour.
Nannies who work during term time only may fall into the Employers NIC threshold for some months of the year but not others.
If this all sounds a bit complicated, rest assured that when you hire a Koru Kids nanny, the hourly rate you see will be the total cost you pay. It also includes our service fee for vetting candidates, payroll, and managing all the admin that comes with hiring a nanny. If you’re looking for a nanny but need to keep things simple – see if we have someone perfect near you.