10 Ways to Calculate the Salary of a Full-Time Nanny

If you have decided to hire a full-time nanny, the next step is to determine her salary. Here are some guidelines to insure that you are paying your nanny an appropriate salary.

1. Cost of Living in your Area - The region in which you live is a probably the biggest factor to take into consideration. If you live in a major metro market such as New York, Washington DC, Boston, Atlanta, San Francisco or Seattle, you can expect to pay higher wages. Find out what other nannies in your city are making and pay accordingly.
2. Number of hours per week - On average a nanny’s wages are $9 to $18 an hour. If you are paying a salary instead of an hourly wage, do your best to estimate the number of hours she will be working and calculate to make sure she is being paid adequately for time invested. Most state laws require that you pay overtime if an employee works more than 40 hours per week. This law does not always apply to live-in nannies.
3. Living Arrangements - A live-in nanny is getting free room and board; therefore she is generally paid less than one who lives outside your home. However, live-in nannies often have more responsibility than those who live out, so be sure to take that into consideration.
4. Responsibilities and Tasks - Decide exactly what the nanny will be expected to do–whether it will be strictly caring for the children, or will include household tasks such as fixing meals, and picking up after the children. The more duties she has, the more she should be paid.
5. Age of Nanny - A nanny under the age of 21 will not expect to be paid as much as an older nanny.
6. Experience - A nanny with 2 or more years experience should be paid at least $50 a week more than one who is just starting out in the field.
7. Education - When it comes to the job market, more education translates to higher wages. It’s no different in the childcare industry. A nanny who has professional training or a college degree in childcare, should receive a higher salary.
8. Number of Children - In general, average salaries for nannies are based on the rate of caring for two children. If there are more than two children, she should receive at least 10 percent more per child.
9. Age of Children - Generally babies or younger children require a lot more attention and are a bigger responsibility than older children. The nanny should be paid accordingly.
10. Benefits and Vacation - Remember a nanny, like any other employee should be given benefits. You can expect to pay at least 50% of her healthcare insurance. If you have not agreed to pay for insurance and other benefits such as paid holidays, it will be necessary to pay a higher salary to compensate.

Deciding how much you should pay your full-time nanny does not have to be complicated. By doing some in-depth research and careful consideration, you can determine a salary that is appropriate, based on the nanny’s experience, education and responsibilities.