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View Full Version : How much is minimum wage these days?



JCrakers
19-03-2014, 10:41 AM
With all the news about childcare being too expensive I thought I would do a few calculations to find out how much I actually earn as I've never sat down to work it out at an hourly wage.
I'm up to date with my tax and expenses although I've still got the rest of March to total up and few days of April but I know what money is coming in and estimated on outgoings.

Bearing in mind I'm working very close to full capacity (50hrs a week) with 16 children on my books. I have 3 mindees every day with the very occasional variation if someone wants an extra day. On my busiest days which are Mon, Tue and Weds I have 9 children in total. 7 on Thursdays and Friday's I only have 3 little ones so this is my quietest day as no school run.

I worked out that per hour after expenses and tax/NI that I make a total of £6.18.

So when people see me walking back from school with a trail of kids thinking I'm "raking it in" it's not a huge amount of money per hour is it for being on your feet all day with no break in 10hrs.

When its written down, reality of how underpaid for everything I do is shocking! Good job I love doing it :D

I think minimum wage is rising to £6.50? Might look at a rise in fees then :thumbsup:

AdeleMarie88
19-03-2014, 10:46 AM
I had a lady who runs the local stay and play, tell me I must loaded, and the £2 fee per child for her session is a bargain in comparison to my earnings! (Bearing in mind I take three children to that session) I laughed in her face and said you clearly have never been a CM because I don't even make minimum wage!

It is a common misconception that we are loaded I think! When I break everything down, my hourly wage comes to £5.83, way bellow minimum wage. I'm trying to hold off putting my fees up for another year...however, I have just open my post this morning, and my electricity bill is going up, as is my water bill. It is very tricky sometimes to balance the funds! X

LauraS
19-03-2014, 12:01 PM
With all the news about childcare being too expensive I thought I would do a few calculations to find out how much I actually earn as I've never sat down to work it out at an hourly wage. I'm up to date with my tax and expenses although I've still got the rest of March to total up and few days of April but I know what money is coming in and estimated on outgoings. Bearing in mind I'm working very close to full capacity (50hrs a week) with 16 children on my books. I have 3 mindees every day with the very occasional variation if someone wants an extra day. On my busiest days which are Mon, Tue and Weds I have 9 children in total. 7 on Thursdays and Friday's I only have 3 little ones so this is my quietest day as no school run. I worked out that per hour after expenses and tax/NI that I make a total of £6.18. So when people see me walking back from school with a trail of kids thinking I'm "raking it in" it's not a huge amount of money per hour is it for being on your feet all day with no break in 10hrs. When its written down, reality of how underpaid for everything I do is shocking! Good job I love doing it :D I think minimum wage is rising to £6.50? Might look at a rise in fees then :thumbsup:

Remember though, the person on minimum wage is also paying tax and NI so doesn't take home 6.50ph either. They would actually only take home 5.51 ph working a 50 hour week, so in equivalent terms you are earning more than the minimum wage.

That's without taking into account the generous tax allowances that childminders can utilise, and the perks of not having to pay for childcare if you have children of your own. I worked out last year when I was feeling a bit fed up that my hourly rate and it was was similar to yours. However, when I worked out how much I would need to earn to bring home that amount per hour as an employee, including travel costs, business wear, professional membership and union costs, tax and ni and most importantly childcare for three children for fifty hours per week it was in excess of £55k. That's more than I used to earn, so the grass is greener where I am.

That's not to say that childcare is too expensive of course!

munch149
19-03-2014, 12:12 PM
I would Definately not say that childminding is well paid but I think it makes you better off if you have young children of your own. If you aren't entitled to benefits even someone earning £8 per hour in a job would fork out half there wages in childcare if a single parent.

I don't think childcare is expensive either (other than some highly priced private nurseries) but what we charge is what we need to in order to earn a decent wage.

I don't think I would be better off working in a nursery for example and I love the freedom of my job. It wouldn't suit everyone tho.

Simona
19-03-2014, 01:05 PM
As we are self employed we do not fall under the 'waged' category' and not entitled to sick leave or such benefits employed people get
We have an annual turnover from which expenses and legitimate allowances are deducted and we are left with a profit.

Those who make remarks about cms 'raking it' have no idea what running a business is all about...even NDNA have said recently that they want to be able to make a small profit...why not...if we do we reinvest in our business anyway

rickysmiths
19-03-2014, 02:52 PM
National Min Wage


Year 21 and over 18 to 20 Under 18 Apprentice*
2013 (current rate) £6.31 £5.03 £3.72 £2.68
2012 £6.19 £4.98 £3.68 £2.65
2011 £6.08 £4.98 £3.68 £2.60
2010 £5.93 £4.92 £3.64 £2.50

It is due to go up again in Oct taking over 21 to £6.50 per hour but it is currently £6.31 per hour.

Some one on min wage will pay very little tax. Say they work a 40 hour week and have an hour for lunch each day they would be paid a max of £11,156.60 a year. Personal allowance is just due to go up to £10,000 from this April so only tax and NI on £1,156.60.

trickiedickie
19-03-2014, 06:13 PM
Yes most people on minimum wage don't earn enough to pay tax and ni.