Net or not

An introduction to the down-sides of a net wage agreement

Domestic employment is one of the last professions left in the UK where wages are still commonly agreed on the basis of net (i.e. take-home) pay. It is surprising that net pay arrangements are still so common; especially when you bear in mind the financial implications at stake, both for the employer and the employee.

Stafftax has been advising employers, domestic emoplyees and agencies to always discuss and agree salaries in gross terms for many years, yet we frequently receive calls from potential employers who are unaware of the real employment costs involved. Once they find out that the difference can be as much as 50% many realise they can't afford to employ them at all, or they decide to only declare part of the salary in an attempt to save money, which not only is illegal but also has real-life implications for their employee.

Have a look at the articles on the left to get a better understanding of the drawbacks of a net wage agreement. If you have any questions, please don't hesitate to get in touch with us on 0845 226 2214.

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