Full-Time Nanny Rates
One of the most pressing questions parents have when considering nanny care is can they afford a nanny. Unfortunately, there is no clear cut answer to this question. Parents who wish to employ a nanny must carefully consider their childcare budget and then look to employ a nanny whose salary expectations fall within their set budget.
Fortunately, however, since so many factors affect a nanny’s salary, hiring a nanny may be more affordable than parents initially think. While years ago nannies may have only been reserved for the rich and famous, today a majority of nannies are employed by dual income families where at least one parent works outside of the home.
According to the 2012 International Nanny Association Salary and Benefits Survey, on average, full-time nannies in the United States earn about $700 gross per week. The following factors, however, can impact full-time nanny rates:
Location. Nannies in major metropolitan areas tend earn more than those in suburbs.
Education. The more education and training a nanny has, the more she generally earns.
Experience. Experienced nannies can command much hired salaries than nannies with less experience.
Hours. Nannies are required to be paid at least minimum wage for each hour worked. Live-out nannies and some live-in nannies are also entitled to overtime pay at the rate of 1.5 times their base hourly rate.
Living status. Live-in nannies earn slightly less than live-out nannies; however employers of live-in nannies must provide room and board.
Duties and Responsibilities. Nannies are responsible for all tasks, including domestic ones, which are related to caring for the children. This includes doing the children’s laundry. Nannies who are expected to perform non-childcare related tasks typically charge a higher hourly rate.
Specialties. Nannies who specialize in providing a specific type of care, like care for multiples, may charge more. Nannies with special skill sets, like the ability to teach a foreign language, may also command higher salaries.
Certifications. Nannies with special certifications above and beyond CPR and first aid may insist on a higher hourly rate.
In addition to the nanny’s salary, nanny employers can expect to pay about 10% of the nanny’s gross wages in mandatory taxes and insurances. For nannies who pay legally, tax credits can offset those costs. Nanny employers who wish to attract top candidates will also need to offer a competitive salary package that includes paid time off and full or partial contributions towards the nanny’s health insurance premium.
10 Things to Consider When Setting Your Nanny Rate
Crafting a good salary package can be the key to attracting the best nanny to care for your child. As an employer, you will want to consider more than just pay rates to design an offer that is reasonable and appealing to prospective nannies. Here are ten things to consider when determining your nanny’s pay rate:
- Experience. A nanny’s experience significantly impacts her earning potential. The more experience a nanny has, the more she earns.
- Hours. Nannies typically work 40 to 60 hours each week with two days off. The negotiated salary agreement should specify your family’s expectations for hours to be worked.
- Number of children. While nannies charge per family, if you’ll be expecting an addition anytime soon, you can expect to increase the nanny’s hourly rate by about 5%.
- Overtime. Live-out and some live-in nannies, depending on the state, who work more than 40 hours a week are entitled to 1.5 times the base hourly wage for those overtime hours, according to the Fair Labor Standard Act. Remember that your nanny must be paid the legal minimum wage, and most demand a much higher pay rate.
- Vacation and holidays. Most nannies receive at least two weeks of paid vacation each year. They also should receive some paid holidays as negotiated with the family for whom they work. Eight federal holidays would typically be offered in most households. Nannies are typically paid 52 weeks per year. If you opt for a vacation sans nanny, she’ll still expect to be paid.
- Health Insurance. Many families pay either all or part of a nanny’s health insurance premiums as part of the employee pay package. Nannies may accept a lower hourly rate if they are getting health insurance benefits.
- Transportation expenses. If nannies are expected to drive children to school or special activities, a family should provide for these costs. Some nannies have use of the family car when they are on the job. Others are required to use their personal vehicles. In the latter case, the nannies should the standard IRS mileage reimbursement.
- Room and board. Live-in nannies receive housing and food at their place of employment, including a private bedroom and bath. Nannies who live-in may earn slightly less than those who live-out.
- Expenses. Nannies are normally entitled to compensation for out-of-pocket expenses on the job. These may include things like children’s meals, groceries, activity costs. Most employers provide their nanny with a petty cash fun and have her document costs by providing receipts.
- Perks. Some employers may choose to offer additional benefits outside the normal scope of a pay package. These could include the use of a vacation home or health club membership. Nannies may be willing to lower their rate in exchange for desirable perks.
A competitive pay package helps parents attract and keep the most attractive nanny candidates. Families who invest in their nannies tend to have nannies that invest in their families. When nannies feel valued and compensated fairly they are more likely to go above and beyond and strive to be the best employee they can be.
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