All UK employers must pay their employees at least National Minimum Wage, including employers of household staff. If you are found to be paying your household staff below minimum wage, you could find yourself facing serious legal repercussions.
What is National Minimum Wage?
The National Minimum Wage is the minimum pay per hour employees are entitled to. For employees aged 21 and over, this is referred to as the National Living Wage.
- National Living Wage (NLW) for those aged 21 and above
- National Minimum Wage (NMW) for those under the age of 21
Do I need to pay my Household Staff Minimum Wage?
Yes, you are legally required to pay your household employees at least minimum wage.
Please note that employers can choose to pay more than minimum wage.
What is the current National Minimum Wage?
As of 5th April 2024 the National Living Wage is £11.44, but this will increase to £12.21 in April 2025.
The minimum wage is updated in the April of each year, please see here for the latest NMW and NLW rates.
What will happen if I don’t pay my Household Staff Minimum Wage?
If HMRC find that you have not been paying your household employees minimum wage, they can take any of the following actions against you:
- Issue a notice for you to pay your employee the money that they are owed, going back a maximum of 6 years.
- Issue you a fine of up to £20,000, and a minimum of £100 for each employee affected, even if the underpayment is worth less.
- Take legal action against you including criminal proceedings
- Pass on your name to the Department for Business and Trade (DBT), who may put you on a public list.
Source: ACAS
How can I check that I’m paying my Household Staff minimum wage?
To check that you are paying your employee minimum wage, you can use GOV.UK’s National Minimum Wage and Living Wage calculator for employers.
How can Stafftax help?
We offer a fully comprehensive Domestic Payroll & HR service. Our dedicated team is committed to supporting you throughout the employment of your household staff, which includes keeping you up-to-date with changes to legislation and ensuring your compliance with HMRC.
