10 Different Ways to Set Your Nanny Rates

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 tips to keep in mind:

1. Experience — A nanny’s compensation should be based on years of experience in the field. The International Nanny Association (INA) has conducted surveys about typical pay rates for nannies based on whether they live with the family or not. Go to www.nanny.org to see their survey and guidelines.
2. 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. The INA reports that live-in nannies generally make $350 to $1000 per week more than part-time nannies.
3. Number of children — The size of the family and the age of the children affects the nanny’s work load. These factors should be taken into consideration when developing the employee’s pay rate.
4. Overtime – Nannies who work more than 40 hours a week are entitled to 1.5 times the basic 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 would receive a much higher pay rate.
5. 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. Six or more paid federal holidays would typically be offered in most households.
6. Health Insurance – Many families pay either all or part of a nanny’s health insurance costs as part of the employee pay package. Some nannies also may receive paid sick days as part of their compensation.
7. 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 receive mileage costs to compensate for the gas used and the wear on their car.
8. Room and board – Live-in nannies receive housing and food at their place of employment, including a private room in most cases. Meal preparation and planning may be among the nanny’s responsibilities.
9. 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. Ask your nanny to document these costs by providing receipts.
10. Perks – Some employers may choose to offer additional benefits outside the normal scope of a pay package. These could include the use of a cell phone, yearly bonuses, contributions to employee retirement plans or reimbursement for professional care-giving conferences.

If you want to attract and keep an excellent nanny, you will need to respect her time and talent. A good pay package can be one way to thank your nanny for good work on the job.