It is that time of year again! You’re decorating the tree, purchasing and wrapping gifts for family and friends and looking forward to the festive season. You may also be wondering if you should be giving your Nanny a Christmas/annual bonus.
The answer is that there are no hard and fast rules on this, it is a personal choice and by no means obligatory, unless of course there is a clause in the employment contract between you and your Nanny that states otherwise. Bonuses are however a great way of expressing your appreciation for your Nanny’s hard work throughout the year.
If you have decided on giving your Nanny a Christmas / annual bonus, you may be wondering how much. Commonly, families will typically give one to two weeks salary or base it on a percentage of the Nanny’s annual salary & how long the Nanny has been in your employ. Some parents will base their Nanny’s bonus on their own bonus scheme at work, the simple answer is that the bonus amount is entirely at the employer’s discretion.
Be mindful that bonuses at Christmas or indeed any other time of the year are a taxable benefit with a gift of money being treated as regular earnings, so any bonus will need to go through your payroll with National Insurance and PAYE deducted.
