How Much Do I Pay a Nanny?
So it happened—you hired a nanny. Congratulations! Having a nanny to help care for your children and home is a wonderful benefit. They can provide peace of mind, a helping hand, and much-needed reprieve. But how much do you pay them?
Researching the cost of a nanny is paramount to offering the right price. Several factors should be considered before finalizing your payment offer.
Here is everything you need to know about how much you should pay your nanny:
What is the Starting Rate?
In terms of legality, a nanny is classified as an employee. This differs from being considered an independent contractor. This makes a difference. That means you must pay your nanny based on an hourly rate.
If you choose to offer a salary, you must calculate what that cost would be in the form of an hourly rate. You must also consider overtime should you need additional hours from your caregiver.
Starting salaries are based on part time, full time, live-in or live-out positions,
and can be negotiable between potential nannies/employees and employers hiring. The recommended starting rate for a nanny is $20 – 30 per hour. It is important to take into consideration whether or not you aim to have your nanny live in or live out. Research the cost of living in your specific area and state to ensure your nanny can afford to live in the same area. For nannies in the tri-state area, many nannies begin at a minimum of $20 – 40 an hour.
How Many Children Are There?
Another factor to consider is how many children you have. Will the nanny be caretaking for all of them?
The more children, the more work; therefore, the more the nanny should be compensated. If you are starting your nanny at $30 per hour, add $1 more for each additional child. If you have 3 children, the starting price should be $32 per hour.
What Duties Do You Expect?
Now you must contemplate what you expect from your nanny. Are you needing them to help care for and raise your children? Do you need them to do the shopping and drive the children to and from school/after-school activities? This should be filtered into what you pay them.
Here are some of the common daily tasks nannies are responsible for:
- Provide daily needs for the children
- Transport to and from all activities
- Daily planning of activities
- Helping children with care routines such as bathing
- Prepare and cook meals
- Taking care of the house
- Laundry needs
- And more
Don’t forget to compensate for their gas expenses should they need to transport your children. It is best to offer a higher rate versus the nanny merely watching the kids.
What About Benefits?
When hiring a nanny, ponder whether or not you want to offer benefits. Remember, this is likely their only employment. Nannies dedicate many hours per week to caregiving for families, their children, pets, and the home.
Due to most nannies being full-time, it is highly recommended by the professionals to offer benefits. The industry standard of benefits for nannies include:
- Paying overtime for any hours worked over 40 hours per week
- 2 weeks paid time off (PTO)
- 5 sick days
Additional benefits can look like the following:
- Bonuses
- Relocation assistance
- Health insurance stipend
- Cell phone, gas, car insurance reimbursement
- 401k contributions
- And more
Bottom Line
When you are ready to hire a nanny, be sure to have all your financial ducks in a row. Nannies can provide the ultimate peace of mind by taking care of your children and home. Compensating them appropriately for their essential assistance is vital.
By considering a starting price point based on your location, how many children you have, and what duties you expect, you can choose the right payment for your nanny. Remember to consider overtime, benefits, and whether they live in or out of your home.
Are you ready to find the right nanny for your family? Job Info Service is top of the industry in matching caring nannies to loving families. We serve New Jersey, including Bergen County, Essex County, Passaic County, Franklin Lakes, Montclair, Livingston, Upper Saddle River, and more. Job Info Service is proud to additionally serve many areas of New York, including Long Island, the Hamptons, Westchester, 5th Ave, Park Ave, all of Manhattan, and more. We also provide nationwide services!
Visit our website today to get your profile registered and find the right nanny!