How Much Should I Pay My Nanny?

Nanny wages have a wide range.  And household employers also have a wide range of income from which to pay a nanny. This often leads to some push and pull as nannies need to earn a living wage as household employers may struggle to pay those wages. Each household employer should approach wages thoughtfully yet realistically.

Use this process to determine how much to pay your nanny:

First, start with a sense of what a living wage is in your area.

An excellent, respected resource is the MIT Living Wage Calculator. https://livingwage.mit.edu/

Next, examine wage averages from three different sources.

  1. Ziprecruiter at https://ziprecruiter.com/ is a good source to find what other household employers are paying in your area
  2. Searching parent forums like Berkeley Parents Network https://www.berkeleyparentsnetwork.org/, DC Urban Moms and Dads https://www.dcurbanmom.com/, or Park Slope Parents (Park Slope, Brooklyn) https://www.parkslopeparents.com/ can give you targeted information for these areas.
  3. Google local nanny agencies and contact them. They can give you a sense of the current market rate.

Now factor in variables that could affect your wage up or down.  Some variables to consider are:

  • Location: Costs vary significantly by region. Big cities and areas with higher living costs generally have higher nanny rates.
  • Experience and Qualifications: Nannies with more experience, specialized training (like early childhood education), or certifications (like CPR and first aid) usually command higher pay.
  • Responsibilities: If the nanny is expected to do more than basic childcare (like light housekeeping, cooking, driving children, or tutoring), the pay should reflect those added duties.
  • Number of Children: Caring for multiple children is more demanding and usually results in higher pay.
  • Live-in vs. Live-out: Live-in nannies may have a different compensation structure that includes room and board.
  • Guaranteed hours. Most nannies prefer a set number of guaranteed hours per week.  If you cannot offer this, you may want to consider paying more.
Once you have a sense of what nannies are paid in your area, taking living wage into consideration, you can move toward what you are willing and able to pay.

The cost to you will be the nanny’s wage, plus approximately 10% for taxes (give or take depending on where you live), then the cost of your payroll service.  Once you have that base cost you can consider other additional costs.  These are optional, yet the more you provide, the more likely you will have a long-term, satisfied employee who will go that extra mile for you.  Optional additional costs are the customary year-end bonus.  Most nannies receive a week’s pay.  Another perk would be health insurance or retirement benefits.

Once you have completed this process, you will certainly have a better sense of what to pay your nanny.  As with all things, some thoughtful consideration goes a long way toward an answer you can live comfortably with.