Operated by founder Kaye Sandison, the nursery was one of 2,190 Scottish employers that became officially accredited for paying the UK living wage of £9.50 an hour or higher to all members of staff over the past year.
Having first opened its doors in 2008, Hame Fae Hame caters for children between the age of one and 12, employing 20 members of staff and caring for 120 children.
Last year it was awarded a Sunday Times/Lloyds Banking small business award, in addition to being granted £88,000 in funding designed by the Scottish government as part of a scheme aimed at tackling childhood poverty.
“We joined to demonstrate how much we value our staff,” Sandison said following the nursery's nomination.
“The business would be nothing without them and we’re all like one big family.
“After the tough year we had in 2020 we had hoped for slightly easier times in 2021, and we have been so impressed by how the staff have kept going, which is why we applied for recognition in the ‘resilience’ section of the awards.
“We were shocked and surprised to be shortlisted as local champions.”
Hame Fae Hame will compete against Moray School Bank, Scottish Borders Council and CJM Project Financial Management in a bid to be crowned local champion for 2021.
The winners will be announced on 19 November at a virtual ceremony.
Living Wage Scotland has estimated that 45,600 workers in Scotland have been given a pay rise thanks to the organisations work in ensuring that employers pay at least the national living wage.