How much should you pay a nanny?
Whether you have already found the perfect nanny for your family and need to make them an offer or you’re just researching the cost of a nanny to plan financially, here’s how much to pay a nanny and what all should be considered.
There is not a set rate across the board since many factors go into your offer; this includes the number of children, duties required, the amount of travel expected. But it doesn’t stop there, you also need to consider benefits such as a 401k, PTO, bonuses, gas/mileage reimbursements or providing a car while on the job, health insurance or a health stipend, and more.
So let’s dive in and figure out how much you should pay a nanny.
What’s the starting rate to pay a nanny?
Legally, nannies are classified as household employees rather than independent contractors, which means you must pay a nanny based on an hourly basis. While it’s perfectly fine to have a specific salary in mind (e.g. $85,000 per year), you should then work backward to determine the appropriate hourly rate. Remember to factor in overtime and other considerations when calculating this rate as well.
If you don’t have a salary in mind, we recommend a starting rate of $25/hour. However, just because this is the starting rate, it may not be the best rate for you to offer. You need to take into account if the position is live-in or live-out. You also need to research the cost of living in your city and state and ensure your nanny can comfortably afford to live in your area. A rate of $25/hour may work in Florida but it won’t in New York.
You will need to ensure you pay your nanny a livable wage (preferably more than just the minimum) and be aware that nannies are non-exempt household employees. Meaning if they work over 40 hours each week, they should be paid an overtime rate of 1.5 x their hourly rate.
While $25/hour is our suggested starting hourly rate, the vast majority of our nannies, nationwide, start at a minimum of $30-35/hr and up. If you need help finding the right nanny for your family, start here.
How many children do you have?
Again, taking into consideration that the starting rate is $25/hour, you will need to pay a nanny more per hour if you have multiple children. We recommend at least $1/hour for each additional child. It is more cooking, cleaning, homework help, after-school activities and sibling feuds with each additional sibling.
What duties are required?
Are you only expecting a nanny to care for and help raise your child(ren)? Are you expecting them to also get groceries and clean the home? Are you expecting your nanny to take care of any pets you have? Everything above and beyond childcare should result in an increased rate.
This also means reimbursing gas expenses if your nanny will drive your children somewhere or providing a car for your nanny to use while working.
Are you offering benefits?
Because most nannies are working for families full time, we highly recommend offering benefits just like you would expect to receive from your full-time job.
The industry standard for nanny benefits:
- Pay overtime for hours over 40 hours each week
- Two weeks (10 days) PTO
- 5 sick days
Other benefits you can offer your nanny are:
- Performance-based bonuses
- Relocation assistance
- Cell phone reimbursement
- Health insurance stipend
- 401k contributions
When deciding what to pay a nanny, ensure that the offer is just the beginning of a positive, lasting relationship between your family and your new nanny. By considering not only the hourly rate but also benefits, bonuses, and other perks, you can create a competitive offer that reflects the level of care and dedication you’re looking for. Remember, a well-compensated nanny is more likely to feel valued and stay committed long-term, which means stability and peace of mind for you and your family.
Take your time, evaluate what you’re able to offer, and don’t hesitate to discuss these details openly with your nanny to ensure everyone is on the same page. If you need help recruiting a nanny, we would love to be your agency! Get started with The Nanny League!