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information for domestic workers

Current tax thresholds
Your employer must register and deduct NI from your salary if you are paid £153 or more per week. Your employer must also register if you have another job, even if you are paid below the threshold.

If you are paid between £111 and £153 and you do not have another job, your employer should still register with HMRC although no Tax and NI will be due. This will enable you to receive state pension and other benefits. Tax is only deductable if you are paid £192* or more per week and you do not have another job.

Tax and NI payments
If your employer's monthly Tax and NI bill is below £1,500 they only have to pay Tax and NI to HMRC on a quarterly basis.

Payment dates
19 April 2014
19 July 2014
19 October 2014
19 January 2014

Statutory Sick Pay (SSP)
The current rate is £87.55 per week.

Statutory Maternity Pay (SMP)
The first six weeks of SMP are at 90% of average gross weekly earnings. The remaining weeks of the maternity pay period (up to a maximum of 33 weeks) are paid at the lower rate of £138.18 gross per week, or 90% if lower.

Statutory Paternity Pay (SPP)
New fathers are entitled to two weeks' SPP, with a right to a further 13 weeks of unpaid leave. The current rate is £138.18 gross per week.

Statutory Adoption Pay (SAP)
The current rate of SAP is £138.18 gross per week.

Redundancy pay entitlement
Aged between 18 and 21: half a week’s pay, or £225, whichever is lower
Aged between 22 and 40: one week’s pay, or £450, whichever is lower,
Between 41 and retirement: one and a half week’s pay, or £675, whichever is lower
Please note that you qualify for a multiple of the above for every year of continuous employment (for the same employer).

National Minimum Wage (NMW), effective from 1 October 2014
£3.79 per hour gross for employees aged between 16 and 17
£5.13 per hour gross for employees aged between 18 and 20
£6.50 per hour gross for employees aged 21 years and over

Offset allowance per 7-day week: £34.37 (effective from 1 October 2013)

Student Loan Recovery
If you have a student loan and are earning £16,910 gross per year, £1,409.16 gross per month, £325.19 gross per week or more, your employer must deduct student loan repayments form your salary.

*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.


Redundancy pay PDF Print E-mail

 

Many domestic workers, employers and agencies assume that because of the unique circumstances that exist between in domestic employment, they don’t qualify for redundancy pay. But providing you meet the requirements you are entitled to redundancy pay just like any other employee.

Do I Qualify?
To qualify you must be 18 or over and have at least two years continuous employment. This means that you must have been working for the same employer, without any breaks, apart from maternity, sickness and unpaid leave, for at least two years. You must also be working as an employee under an employment contract and have a PAYE scheme set up on your behalf. This does not mean that you need to have a written contract, as some employers unfortunately don't provide this. You are still considered an employee working under a contract even if there is nothing in writing.

If your employer's circumstances change and they no longer have a full-time job for you, and they want to employ somebody on a part-time basis, they are required to first offer the 'new' position to the you, the existing employee. If you choose not to continue working for them under the new conditions you are still entitled to redundancy pay, unless you are on a fixed term contract.

You will also qualify for redundancy pay if your employer moves to a different part of the country, providing there is no relocation clause in your contract.

How much will I get?
How much redundancy pay you are entitled to is dependent on your age. Please see the rates and thresholds page for current redundancy pay rates.

As an employee on PAYE you are legally entitled to these amounts; however, your employer is free to pay you more than the statutory minimum at their own discretion. They cannot claim any part of the costs back from the state. You do not have to pay tax on redundancy payments up to £30,000. If your employer refuses to pay, you must make a written request to them within six months and then be prepared to follow this up.

How will I cope?
Being made redundant is never easy, not only can unexpected redundancy leave you in a financially difficult situation; it can also wreak havoc with your self-esteem. There is still a lot of stigma attached to redundancy and you may temporarily feel that you have lost your sense of purpose. But keep in mind that an unexpected break can bring about life-changing opportunities, so try to stay positive. Give yourself time to assess your goals, re-work your CV and talk to others about your experience. You may also want to grab this opportunity to take a course to add to your skills. And when you go to interviews, be honest about your situation. Most domestic employers know that redundancy is more common in domestic employment than any other profession.