UK household-employer guide

Minimum wage for live-in staff

Live-in nannies and housekeepers are generally entitled to the National Minimum Wage. Accommodation can affect the calculation, but only through the statutory accommodation offset.

Household reviewing gross salary and employment costs
Minimum-wage compliance depends on the worker's age or apprentice status, pay that counts, hours that count and any employer-provided accommodation. This page is general UK employer information, not personalised legal or payroll advice.

Does minimum wage apply to a live-in nanny or housekeeper?

Yesin the normal way for a qualifying worker, even when they live in the family home.

A live-in nanny, housekeeper or other domestic worker who qualifies as a worker for minimum-wage purposes is generally entitled to at least the applicable National Minimum Wage or National Living Wage. HMRC's current manual confirms that, from 1 April 2024, a non-family worker who lives in a family home and shares in household life is entitled to minimum wage in the normal way. This is general information: legal status and any specific exemption still need to be checked for the individual arrangement.

Free board or a valuable London room does not replace cash pay pound for pound. Employer-provided living accommodation is the only benefit in kind that can count towards minimum-wage pay, and it does so only through the statutory accommodation-offset rules. Meals, a car and other benefits do not acquire a market value that can simply be substituted for wages. This is general guidance, so use the official calculator for the actual pay reference period, hours, deductions and accommodation arrangement.

Current National Minimum Wage rates from 1 April 2026.

The applicable hourly rate is based on age and, where relevant, statutory apprentice-rate eligibility. These values change in April and should be rechecked when setting or reviewing pay.

Worker2026 hourly rateHousehold-employer note
Age 21 and over£12.71Statutory National Living Wage from 1 April 2026; recheck the current rate when reviewing pay.
Age 18 to 20£10.85Statutory rate from 1 April 2026; use the worker's age during the relevant pay period and recheck the current rate.
Age 16 to 17£8.00Statutory rate from 1 April 2026; young-worker working-time rules also require separate attention.
Apprentice rate£8.00Statutory rate from 1 April 2026, only where the apprentice-rate conditions are met; otherwise the age-based rate applies.
Accommodation offset£11.10 a dayStatutory offset from 1 April 2026, up to £77.70 for seven days; recheck the current accommodation rate.

These are the statutory rates effective from 1 April 2026, not recommended market salaries. A London nanny or housekeeper may command substantially more, and a household must still test the actual pay that counts against the actual hours that count in each pay reference period. This is general information, not an individual wage calculation.

Housekeeper supporting the daily routine of a home
The accommodation offset is a statutory calculation rule. It is not the market rent of the room and it does not turn a live-in employee into a continuously available worker.

How the accommodation offset works for live-in domestic staff.

From April 2026, the accommodation offset is £11.10 for each day that qualifying employer-provided accommodation is available, subject to a £77.70 weekly maximum. If qualifying accommodation is free, the offset can be added to pay for minimum-wage purposes. If the employer charges at or below the offset, the charge does not reduce minimum-wage pay. If the employer charges more than the offset, the excess reduces the pay that counts for minimum wage. These are general rules; the accommodation must meet the statutory test and the full pay arrangement should be checked using current GOV.UK guidance.

Free accommodationThe statutory offset can be added to minimum-wage pay. The market rental value of the room is irrelevant to this calculation.
Charge at or below the offsetThe accommodation charge does not reduce minimum-wage pay under the accommodation-offset calculation.
Charge above the offsetThe amount above the applicable offset reduces the pay that counts towards minimum wage.
Other benefitsMeals, a car and other benefits in kind do not count towards minimum-wage pay merely because they have a monetary value.

Worked example: why charging for accommodation can create an underpayment.

The headline hourly rate is only the starting point. The accommodation charge can change the pay that counts for minimum-wage purposes.

1
Start with cash pay.

A worker aged 21 or over works 40 hours in a seven-day pay reference period and is paid £12.71 an hour, giving £508.40 cash pay for the week.

2
Apply the accommodation charge.

The employer provides the accommodation and charges £120 for the week. The 2026 weekly accommodation offset is £77.70, so the charge exceeds the offset by £42.30.

3
Reduce minimum-wage pay by the excess.

£508.40 minus £42.30 leaves £466.10 of pay counting for minimum-wage purposes. Dividing by 40 hours gives £11.65 an hour, below the £12.71 rate.

4
Correct the pay arrangement.

The household would need to correct the underpayment and make sure future pay is sufficient after the accommodation-offset calculation. This simplified example assumes a worker aged 21+, 40 qualifying hours, a weekly pay period and no other deductions; it is general information, not an individual calculation, so use the official minimum-wage calculator for the actual arrangement.

Common household-employer errors.

Minimum-wage problems are often created by the detail around the salary rather than by an intentionally low headline rate.

Using the room's market rent as wagesOnly the statutory accommodation offset can count. A London room cannot be valued at its private rental price and substituted for cash pay.
Forgetting the April rate change or a birthdayThe applicable rate can change as statutory rates are uprated or when the worker moves into a higher age band. Recheck the rate rather than relying on the figure used when the job started.
Ignoring deductions and worker-paid job costsSome deductions or payments connected with the job can reduce minimum-wage pay, even where gross salary initially looks high enough. This is general guidance; the treatment of each deduction depends on what it is and why it is made.
Using the contract hours instead of the real hoursMinimum-wage compliance is tested against hours that count in the pay reference period. Extra required time, overnight work and on-call arrangements can need separate analysis. Use the working-hours guide for that boundary rather than assuming the rota tells the whole story.
Treating nationality as a pay categoryThere is no separate minimum-wage rate for Filipino staff. The statutory rate depends on the worker's legal entitlement, age and any valid apprentice-rate status, not nationality.

Minimum wage and working time are linked, but they are not the same question.

O30 owns the working-hours analysis. This page uses those hours only to explain the pay test.

Normal contracted hoursRecord the agreed pattern

The contract should state normal hours and days, but minimum-wage compliance must still reflect the hours that legally count in the pay reference period. This is general information; use current official guidance for unusual arrangements.

Overtime and late finishesDo not let unrecorded extra time dilute the hourly rate

If required extra work increases the hours that count, the household should test the resulting average minimum-wage rate rather than looking only at the original salary. The exact working-time and pay treatment is fact-specific.

Live-in and overnight periodsDo not assume every hour at home counts, or that none does

Working-time and minimum-wage rules use specific legal tests for on-call and sleep-in arrangements. This page does not decide those hours for an individual role; check the current official guidance and the household's actual restrictions and duties.

Review working hours, rest breaks and overtime before using a salary figure to test a complex live-in rota. The linked page explains the hours boundary; this page explains the minimum-pay calculation.

From our work

We separate the staffing brief from the legal minimum-pay check.

Filipino Domestic Services' current staffing process asks the household to define the role, normal days and hours, postcode, working arrangement and intended start date before candidate introductions are assessed. For a live-in position, our service guidance also tells households to define the accommodation and genuine off-duty time rather than treating residence at the property as a job description.

That sequence is useful for minimum-wage compliance because the legal test cannot be answered from a title such as “live-in nanny” or “housekeeper” alone. The household needs the actual working pattern, the gross-pay proposal, any recurring overtime or overnight expectation, and the accommodation arrangement. A room provided with the job is relevant, but the statutory offset decides how it affects minimum-wage pay. The room's London rental value does not become a substitute wage.

We also keep market salary and statutory minimum pay as separate questions. Our salary-reporting work compares role-specific London benchmarks, while the employer guide treats £12.71 for a worker aged 21+ as a legal floor from April 2026, not a target rate for an experienced private-household professional. Filipino Domestic Services is an introduction agency, not a payroll or legal adviser, so the household remains responsible for checking the final pay, hours, deductions and accommodation calculation against current official guidance.

Keep enough records to prove the minimum wage was paid.

Current GOV.UK guidance says employers must keep records that show minimum-wage compliance for at least six years. Payroll records commonly show total pay, deductions and total hours, while contracts and other records can support the underlying working arrangement. This is general record-keeping information; check the current official rules for the pay periods and records relevant to the household.

Underpayment can lead to arrears and financial penalties. Current Fair Work Agency guidance states that minimum-wage underpayment can result in a penalty calculated at up to 200% of arrears, subject to a maximum of £20,000 per worker, with a reduction available for prompt full compliance with a Notice of Underpayment. HMRC currently enforces minimum wage on behalf of the Fair Work Agency. This is a general enforcement summary, not advice on a particular investigation or arrears calculation.

Questions about minimum wage for live-in domestic staff.

Does minimum wage apply to a live-in nanny?

Yes, in the normal way where the nanny is a qualifying worker for minimum-wage purposes. HMRC confirms that the former exemption for a non-family worker living as part of the family no longer applies from 1 April 2024. The worker's exact legal status and any specific exemption still need to be checked.

What is the National Living Wage for a nanny in 2026?

From 1 April 2026, the National Living Wage for workers aged 21 and over is £12.71 an hour. Lower age bands and the qualifying apprentice rate have different statutory rates. This is a legal minimum, not a recommended London nanny salary.

Can free accommodation count towards minimum wage?

Yes, but only through the statutory accommodation offset. From April 2026 the offset is £11.10 per day, up to £77.70 for seven days. The room's market rental value cannot simply be added to wages. The exact accommodation arrangement should be checked against current GOV.UK rules.

What if I charge a live-in employee for accommodation?

If the employer-provided accommodation charge is at or below the applicable offset, it does not reduce minimum-wage pay under the accommodation-offset calculation. If the charge is above the offset, the excess reduces the pay that counts for minimum wage. Use the official calculator for the actual pay period and charges.

Do meals or a car count towards a nanny's minimum wage?

Benefits in kind other than qualifying living accommodation do not count towards minimum-wage pay merely because they have monetary value. Deductions or worker payments can also affect the calculation, so the complete pay arrangement should be checked.

How often should a household check the minimum-wage rate?

At least when statutory rates change each April and whenever the worker's age or apprentice status changes in a way that affects the applicable rate. The household should also recalculate if hours, deductions, accommodation charges or the working arrangement materially change.

Set the role, hours and accommodation before you finalise pay.

A compliant live-in package starts with a clear job and working pattern. Define the real role first, then test the proposed gross pay and accommodation arrangement against the current statutory rules.

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