When families ask us how much a live-in housekeeper costs, they usually mean the salary. But salary is only part of the picture — and sometimes not even the biggest part. By the time you factor in accommodation, employer's National Insurance, pension contributions, insurance, and the day-to-day costs of having someone living in your home, the real figure can be 40–60% higher than the headline salary.
Here's an honest breakdown of what you'll actually spend.
The Salary
Let's start with the number everyone focuses on.
Live-in housekeeper salaries in London (2026):
- Junior / newly trained: £25,000 – £32,000 per year
- Experienced (3–7 years): £32,000 – £45,000 per year
- Senior / sole charge of large property: £45,000 – £60,000 per year
- Housekeeper-cook (combined role): £38,000 – £55,000 per year
These figures are gross annual salaries. Some employers and candidates discuss net pay — what actually lands in the bank — which causes confusion. Always clarify whether you're discussing gross or net from the outset. It saves awkward conversations later.
Live-in salaries are typically £5,000–£10,000 lower than live-out equivalents for the same level of experience. The accommodation offsets the difference — at least in theory. In practice, many candidates compare the cash figure directly, so you may need to explain the total package value.
Accommodation Costs
This is where people underestimate. Your housekeeper needs somewhere to live in your home, and the true cost of that space adds up.
What you're providing:
- A private room at minimum — ideally a self-contained studio or one-bed flat. Shared bathrooms are becoming a dealbreaker for experienced candidates.
- Furnishing and maintenance of the space
- Utilities: heating, electricity, water, internet
- Council tax on the additional dwelling (if it's a separate unit with its own entrance, it may attract a separate council tax bill — though many qualify for annexe relief)
What this costs in London:
If the housekeeper occupies a self-contained studio flat that you own, the opportunity cost is whatever you'd earn renting it out — in central London, that could easily be £1,200–£2,000/month (£14,400–£24,000/year). Even if you wouldn't rent it out, the space has value.
Utilities for one person typically run £100–£150/month (£1,200–£1,800/year). Internet is usually shared with the main household.
Realistic accommodation cost: £15,000–£25,000/year in equivalent value, depending on location and the quality of the space.
Employer's Tax and National Insurance
As a domestic employer, you have legal obligations that add meaningfully to your costs.
Employer's National Insurance Contributions (NICs): Currently 13.8% on earnings above the secondary threshold (£9,100 in 2025/26). For a housekeeper earning £40,000 gross, that's approximately £4,264/year in employer's NICs.
Auto-Enrolment Pension: You must enrol your housekeeper into a qualifying pension scheme (unless they're under 22 or earn below £10,000). Minimum employer contribution is 3% of qualifying earnings. For a £40,000 salary, that's around £1,200/year.
Employer's Liability Insurance: Legally required if you employ anyone. Costs vary, but expect £100–£300/year for a domestic policy.
HMRC Registration: You'll need to register as an employer with HMRC and run payroll — either yourself or through a payroll provider. Domestic payroll services typically charge £15–£30/month (£180–£360/year). Many of our clients use specialist domestic staff payroll companies, which handle everything from tax codes to pension auto-enrolment.
For a detailed look at your obligations and a helpful cost estimator, have a look at our domestic staff tax calculator.
Food and Meals
Live-in housekeepers eat at your home. Some employers provide all meals; others provide food for cooking. Either way, there's a cost.
Estimated food cost: £50–£100/week, or £2,600–£5,200/year. This varies depending on dietary requirements and whether the housekeeper shares family meals or cooks separately.
Some employers give a weekly food allowance instead. This is simpler to budget but can feel impersonal — most families we work with simply include the housekeeper in household grocery shopping.
Additional Benefits
A competitive package goes beyond salary and accommodation. Here's what experienced candidates expect:
- Annual leave: Statutory minimum is 28 days including bank holidays. Many employers offer 30+ days for live-in staff, because the housekeeper's home is also their workplace — more time away from the property matters.
- Sick pay: Statutory Sick Pay is the legal minimum, but offering contractual sick pay (full pay for a set period) is becoming standard for live-in roles.
- Private health insurance: Not universal, but increasingly common — particularly for live-in staff who may not have a GP near the property. Budget £500–£1,500/year depending on the level of cover.
- Annual travel allowance or flights home: Relevant if the housekeeper is from overseas. Two return flights per year is standard for international hires (£500–£2,000/year depending on destination).
- Training: Some employers fund specialist training — silver service courses, wine education, or health and safety certification. Budget £200–£500/year.
The Full Picture: What You'll Actually Spend
Let's add it all up for a mid-level live-in housekeeper in London on a £40,000 gross salary:
Gross salary: £40,000 Employer's NICs (13.8%): ~£4,264 Pension (3%): ~£1,200 Accommodation (opportunity cost): ~£18,000 Utilities: ~£1,500 Food: ~£3,600 Employer's liability insurance: ~£200 Payroll administration: ~£250 Health insurance (optional): ~£800 Total annual cost: approximately £69,814
Round it up and you're looking at roughly £70,000 per year for a mid-level live-in housekeeper in London. For a senior candidate on a higher salary, £80,000–£90,000+ is realistic.
Live-In vs Live-Out: The Cost Comparison
A live-out housekeeper in London with equivalent experience might earn £35,000–£50,000 gross. Higher cash salary — but you're not providing accommodation, meals, or utilities.
Live-out total cost (same experience level):
- Gross salary: £45,000
- Employer's NICs: ~£4,954
- Pension: ~£1,350
- Insurance + payroll: ~£450
- Total: approximately £51,754/year
So a live-out housekeeper saves you roughly £15,000–£20,000/year in total costs. But you lose the flexibility of having someone on-site — early mornings, late evenings, and the general ease of someone being there when you need them.
For many London families, that flexibility is worth the premium.
Getting the Hire Right
The cost matters, but what matters more is finding someone who'll actually stay. High turnover in live-in roles is expensive — recruitment fees, temporary cover, training time, and the disruption to the household all add up. The families who spend wisely on the package upfront tend to keep their housekeepers for years.
If you're looking to hire a housekeeper in London, we can help you build a package that attracts the right candidates and keeps them. The investment is real — but so is the difference a great housekeeper makes to your daily life.