A Complete Guide to Statutory Payments for Nannies in 2026

Hiring a nanny is an ideal childcare solution for families with busy lifestyles and large families. However, employing a nanny comes with significant responsibilities, including ensuring they receive all the correct statutory payments they’re entitled to under UK employment law. Maternity and sickness pay are often overlooked and can be incredibly time-consuming and complex to manage. This complete guide to statutory payments for nannies helps you stay compliant with UK employment regulations, calculate pay accurately, and make the process as smooth as possible for both you and your nanny.

What are Statutory Payments?

In the UK, statutory payments are payments that employers are legally required to make in certain situations, like sickness or maternity leave. Statutory payments are set and regulated by the UK government, meaning both the eligibility criteria and payment amounts aren’t decided by the employer but are fixed by law. For nannies, this means that if they meet the qualifying terms, their employer (usually the family) must pay these amounts, even if the family has a private arrangement for salary or benefits.

Why are Statutory Payments for Nannies Important to Both Employers and Nannies?

Statutory payments are important because they uphold your nanny’s legal rights, provide financial security during times like sickness or maternity, and help you meet your obligations as an employer while maintaining a fair and positive working relationship.

For nannies, statutory payments provide them with financial security during life events such as illness or maternity. Plus, statutory payments ensure nannies receive the minimum legal payment whilst giving full peace of mind that they won’t be left without income in difficult situations.

For employers, statutory payments ensure complete compliance with the UK employment law, which avoids employers getting penalties or disputes. Plus, statutory payments help maintain a fair and professional working relationship with their nanny, showing the nanny that their welfare is being valued, which can support staff retention and improve trust and loyalty.

Key Types of Nanny Statutory Payments

When employing a nanny, there are several statutory payments you need to provide under UK law. These nanny statutory
payments ensure your nanny is supported during periods of sickness, maternity leave, or other circumstances. The main types include Statutory Sick Pay (SSP) and Statutory Maternity Pay (SMP). As a nanny employer, it is significant that you understand each nanny statutory payment, the eligibility requirements, and your responsibilities for staying compliant and maintaining a positive working relationship with your nanny.

Statutory Sick Pay

Statutory Sick Pay (SSP) is a legal pay entitlement in the UK that you must provide for when your nanny is sick for more than three consecutive days. These first three days are called ‘waiting days’ and are unpaid unless you choose to cover them.

Extra Sick Pay

Many families offer paid sick days as part of the nanny’s written contract, often around six days per year, before SSP begins.

SSP Start Date

SSP is payable from the fourth consecutive working day of sickness at the statutory rate set by the UK government.

Top-up Option

You may choose to top up SSP to match the nanny’s full salary, but this is not a legal requirement.

Cost to Employer

Since April 2014, SSP can no longer be reclaimed via the Percentage Threshold Scheme, meaning you must cover the full amount.

Best Practice

Ensure you include clear terms in your nanny’s employment contract that cover both their entitlement to statutory sick pay and any additional sick pay arrangements.

Let Nannywage Ltd Handle Your SSP

As a Nannywage Ltd subscriber, you only need to complete an SSP form on the first day of your nanny’s sickness, and we take care of the rest. We’ll calculate the correct SSP, add it to the next wageslip, and you simply pay the net amount shown as usual.

Subscribe today and let us manage your SSP calculations, compliance, and payroll accuracy →

Statutory Maternity Pay

Statutory Maternity Pay (SMP) is a legal entitlement in the UK for eligible nannies taking maternity leave. It is payable for 39 weeks in total, and the first 6 weeks at 90% of the nanny’s average earnings, followed by 33 weeks at the statutory rate set by the UK government.

Eligibility

When considering the eligibility of statutory maternity pay, your nanny must be on your PAYE payroll and must provide an MAT BQ form as proof of pregnancy. Ensure you submit the MAT B1 form, which states the date your nanny starts maternity leave.

Employment During Leave

During maternity leave, your nanny remains employed, which means you must continue issuing wage slips and processing Tax and National Insurance.

Duration of Leave

Maternity leave can last up to 52 weeks, with the first 39 weeks paid and, if required, a further 13 weeks unpaid, giving your nanny the full legal entitlement while ensuring you stay compliant with statutory requirements.

Let Nannywage Ltd Handle Your Employee Maternity Pay

As a Nannywage Ltd subscriber, simply submit the MAT B1 form and the date your nanny begins maternity leave. We’ll handle the rest, including:

Calculating Statutory Maternity Pay (SMP).
Issuing wageslips.
We claim in advance the full SMP to be paid to your employee, plus an additional 3% known as small employer relief to assist with your admin costs during SMP.

Subscribe today and let us manage your maternity pay calculations, compliance, and payroll accuracy →

Other Nanny Statutory Payments

Statutory Paternity Pay (SPP)

Nannies may be eligible for Statutory Paternity Pay if they meet the terms and earnings criteria. To qualify, the nanny must provide notice of the expected birth and intention to take paternity leave. SSP is usually paid for up to 2 weeks at either 90% of average weekly earnings or the statutory weekly rate (whichever is lower). If you are considering SPP for your nanny, you must continue to provide regular payroll and ensure compliance with HMRC.

Statutory Adoption Pay (SAP)

Statutory Adoption Pay applies to nannies who are adopting a child and meet the required employment and earning thresholds. Eligible nannies can receive up to 39 weeks of pay, starting from the adoption leave date. For the first 6 weeks, SAP is paid at 90% of average weekly earnings, followed by the statutory weekly rate for the remaining 33 weeks. As a nanny employer, you are responsible for calculating the correct amount, issuing payslips, and reclaiming SAP from HMRC when applicable.

Nanny Holiday Entitlements, Pay & Bank Holidays

The minimum paid annual leave per year for nannies is 5.6 weeks, which is based on a 5-day working week, which includes statutory leave and any bank holiday. Part-time nannies receive a pro-rata entitlement.

When working out the holiday pay calculation, it’s based on your nanny’s average weekly earnings whilst including regular overtime, bonuses, or other guaranteed payments. You must ensure the pay reflects what your nanny would usually receive when working.

Whether bank holidays are paid all depends on your nanny’s written contract. Bank holidays can be included as part of statutory leave or treated separately. If your nanny is required to work on a bank holiday, they may be entitled to an alternative day off or extra pay, depending on the employment agreement.

Simplify Nanny Statutory Payments with Nannywage Ltd

Managing statutory payments for nannies, such as maternity or sick pay, can be complex and time-consuming. At Nannywage Ltd, we simplify your nanny’s statutory payments for you so you can focus on what matters the most: your family. As a Nannywage Ltd subscriber, all you need to do is provide us with the relevant forms and dates, and we handle the rest.

Choosing Nannywage Ltd to manage your nanny’s statutory payments means:

Comprehensive HMRC Management: We handle all calculations, payslips, and HMRC submissions for statutory sick pay (SSP) and statutory maternity pay (SMP).
Accurate and Timely Payments: We ensure that payments are accurate, compliant, and timely, giving you peace of mind while keeping your nanny’s rights protected.
Effortless Compliance: We reclaim the full SMP paid, plus an additional 3% to help cover administrative costs, ensuring you stay compliant without additional financial burden.
Support for Sick Leave: We assist with SSP by calculating and including SSP payments in the next wageslip, allowing you to pay the net amount as usual.
Guidance on Leave Entitlements: We provide clear information on statutory leave entitlements, including maternity leave, ensuring both you and your nanny understand your rights and obligations.

Get in touch with Nannywage Ltd today to simplify your nanny’s statutory payments →