Miscellaneous Award
In Australia nannies are covered by the Miscellaneous Award. With the majority of nannies classified as Level 2 pay and conditions, after the first 3 months in a role.
As the employer, you are legally required to pay the minimum standard rate which is (on the whole) lower than the market industry rate for both permanent and casual employees.
By checking the FWO pay calculator you will be able to check if you are paying above or under award rates.
The advantage of paying an above award rate, is that you can bundle your hourly rate to include the other award conditions outlined such as penalties, loadings, allowances and overtime. And pay the one flat rate.
To do this is you need to show that your employment contract passes the Better Off Overall Test (BOOT). That your nanny is better off being paid at the agreed flat rate, than they would be being paid in line with the award wages and conditions. The BOOT ensures that an employee covered by such agreements is not left worse off compared to the relevant award or national employment standards.
This includes considerations such as wages, hours of work, leave entitlements, and other benefits.
Help with Award requirements to pay the nanny
Making sure you have met your award requirements is one of the more annoying and time consuming part of employing a nanny. Domestic Payroll can help.
We are here to help, assisting with the required payments and employment contract. Get in touch with us now and find out how paying the nanny can become an easy process including managing the Award.
