information for domestic workers
Current tax thresholds
Statutory Sick Pay (SSP)
Statutory Paternity Pay (SPP)
Statutory Adoption Pay (SAP)
Redundancy pay entitlement
Offset allowance per 7-day week: £34.37 (effective from 1 October 2013)
Student Loan Recovery
*providing you are on a standard tax code
These rates are effective from 6 April 2014. The rates will be updated as and when they become available.
|Always insist on a gross wage with your employer|
Many domestic employees and domestic agencies still discuss salaries in terms of net (i.e. take-home) and consequently many domestic workers have net-wage agreements with their employers. Although it is understandable that what you are ultimately interested in is how much money you have in your pocket at the end of each week or month, the reality is that you are always paid a gross wage, with tax and National Insurance Contributions paid to HMRC by your employer on your behalf. By insisting to discuss your salary in terms of net you could actually be doing yourself a disservice, as many employers end up considering the tax and NI contributions as additional costs, whereas they are actually part of your gross wage.
Domestic employment is most certainly the only profession left in the UK where wages are still commonly agreed on the basis of net (i.e. take-home) pay. It is surprising that this outdated arrangement has not yet been dispensed with, as there are considerable financial implications at stake. The following points briefly explain why a net pay agreement is disadvantageous to all domestic employees