Search by category:
National Nanny Recognition Week is September 24-30, 2023. Nannies play such an important role in the lives of the children and families they care for. Many parents want to hire a nanny but wonder, how much does a nanny cost? Let’s consider the cost of hiring a nanny, including nanny industry standards that are important to know about.
Nanny Competitive Pay
Be wary when researching average nanny salaries online. Many averages include hourly rates for beginning babysitters and part-time nannies, which can be misleading. Nanny wages vary greatly depending on experience, education, and location. For example, a beginning nanny in a medium or high cost of living area might expect somewhere around $25-$30/hr as a base rate. This person might have some babysitting or daycare experience, and less than 5 years of experience as a nanny. Qualified nannies with more than 5 years of experience and/or higher education in the field of child development may expect a base rate of around $30-$35/hr. Career nannies with extensive experience and specialty training may expect $35+ an hour minimum, upwards of ~$60/hr for expert care and/or a higher than typical level of responsibility.
Guaranteed Hours
When considering the cost of hiring a nanny, it’s essential to factor in guaranteed hours. This means that when you hire a full time nanny, you should expect to pay them 52 weeks per year. Even if you don’t need them to come to work – for example if your family is traveling or home for the holidays – they must be paid their normal wage. It’s not okay to withhold wages from your nanny when they are willing to work. Guaranteed hours help both your family and your nanny to plan a budget. Inconsistent pay just leads to high turnover rates and stress for both parties.
However, guaranteed hours doesn’t mean that your nanny can leave work early or take time off whenever they want. That’s where clear paid time off comes into play.
Paid Time Off
Nannies deserve paid time off. Period! But how much PTO is standard for a nanny? It’s important to have an open conversation with your potential nanny during the hiring process about PTO. The industry standard is typically two weeks of vacation. For sick days, one week is standard.
Be very clear during the interview process regarding vacation and sick time. For example, are you expecting your nanny to plan their vacation at the same time(s) as your own family’s vacation? Or, how much notice should your nanny give before planning a vacation?
What about holiday pay for nannies? Holidays should be regular paid time off or paid at a higher rate (typically double), if your nanny will be working. Make sure to discuss this with your nanny when negotiating your contract. Mandatory federal holidays in the US are Memorial Day, July 4th, Labor Day, Thanksgiving, Christmas Day, and January 1st. Of course, the end of the year – or during Nanny Appreciate Week in September! – is a great time to show your nanny how much you appreciate them with a gift and/or bonus.
Health Insurance
Nannies are not exempt from needing healthcare. While parents aren’t legally required to contribute to their full time nanny’s health insurance premium, it’s highly advisable to do so. How can parents provide healthcare for nannies? There are a few different ways to go about this:
- Contribute directly to your nanny’s health insurance policy via an agreed-upon monthly monetary amount
- Pay into your nanny’s individual Coverage Health Reimbursement Arrangement (ICHRA)
- Set up a Qualified Sall Employer Health Reimbursement Arrangement (QSEHRA)
Health insurance contributions are generally tax-deductible.
Are you ready to hire a nanny?
Nannies play an essential role in our society. It’s so important that they are well compensated for the labor, commitment, and heart that they bring to their work with families. When considering the cost of hiring a nanny, remember to factor competitive pay, guaranteed hours, PTO, and healthcare contributions.
If you’re on the fence about hiring a nanny due to cost, a nanny share may be a good option for your family. In this scenario, two families typically pay 2/3 the cost of a nanny’s salary to care for each family’s child together.
Choosing to hire a nanny is an exciting decision! If you determine that you can fairly compensate a nanny and offer her standard benefits, the next step is to start your nanny search. We can help you find the perfect full-time nanny. Learn more about our customized nanny placement services to help you find the perfect fit for your family.
