Articles & Guides
What can we help you find?

12 employment benefits to offer your nanny

12 employment benefits to offer your nanny

When hiring a nanny, some families put all the focus on hours and base pay and overlook the equally important aspect of providing their nanny with employment benefits.

Like other professionals, most nannies expect—and should get—job benefits that guarantee them paid time off, travel reimbursement and other perks that make their jobs more secure and worthwhile. Think of it this way: nannies have one of the most important jobs out there in raising your children and the next generation. Why shouldn’t they receive the same benefits other professionals get?

While an extensive nanny benefits package is not a requirement for hiring, it’s important to remember that the nanny industry is highly competitive and ensuring the best-quality childcare means being willing to provide standard employment benefits commensurate with a nanny’s skill level and experience. Here are 11 benefits you should consider offering when hiring a nanny.

The basics

1. Guaranteed pay and overtime

When you hire a nanny, they’re agreeing to work for you with the understanding that they’ll have a set number of hours based on the number of hours you need as a family. Nannies also have bills to pay, and those bills don’t change or go away just because you might get home early one night.

It’s therefore a good idea to guarantee a certain number of hours per week in your initial offer, and you should also agree on overtime terms. If your nanny is going to be required to work more than 38 hours per week, you’ll either need to pay them overtime or give them time off in lieu in line with the Miscellaneous Award.

2. Sick days

If we’ve learned anything during the COVID pandemic, it’s that sick days are a must for any employee, but especially for nannies, seeing as they work closely with children. An employee is entitled to take paid sick leave if they can’t work due to illness or injury. How much paid leave they can take depends on how much sick leave they have accrued based on their ordinary hours of work.

Because you will be required to offer paid sick days when employing a nanny in your household, it’s also a good idea to have a backup childcare plan in place.

Family day care is not always a viable option because slots fill up, and part-time care in a day-care centre can often be just as expensive as full-time care. Instead, it’s a good idea to find a local in-home childcare provider who’s willing to work with you on an “a la carte” basis on the days your nanny can’t be in.

3. Paid time off

Employers in Australia are required to offer their employees annual leave. Nannies, covered by the Miscellaneous Award, are entitled to four weeks of paid leave each year, based on their ordinary hours of work. Let’s say you have a nanny who works 38 hours a week. This nanny will be entitled to 38 hours of leave each week for four weeks annually. For a part-time nanny who works 20 hours per week, they will be entitled to 20 hours of leave each week for four weeks annually.

4. Paid holidays

It’s important to note that paid time off does not include public holidays. Paid public holidays are a separate benefit. Generally, if your nanny would usually be expected to work the day on which a public holiday falls, you have a few options: the nanny works and you pay them public holiday penalty rates, the nanny works and receives a day off in lieu, or the nanny has the day off and receives a full day paid at their standard rate.

5. Superannuation

Employers must make contributions into an employee’s chosen superannuation fund, on top of their regular salary. The statutory minimum rate is 10.5% of an employee’s ordinary time earnings, however, you may wish to offer a higher rate as an added incentive.

Reimbursements and stipends

6. Health insurance reimbursement

Although Australia offers free healthcare, many people still decide to take out private health insurance. Offering your nanny private health insurance benefits might be a strong incentive for them.

If you’re only able to cover part of your nanny’s health insurance, it might also be worthwhile drawing your nanny’s attention to the fact that the ATO offers a rebate on private health insurance.

7. Mobile phone reimbursement

Some employers provide mobile phone reimbursements for nannies if the nanny is frequently required to use their personal phone on the job. One example is if a nanny travels with the family and must use their phone to communicate with parents, or if a nanny is required to give frequent updates to parents, or coordinate playdates and other activities. However, if this is the case, the employee should be aware that they may no longer be able to claim deductions for their phone when lodging their tax return.

8. Travel reimbursement

Whenever a nanny uses their personal car for on-the-job transportation, they need to be reimbursed.

Driving the kids to and from school, going grocery shopping, running errands and even driving the kids to and from a playdate can rack up the kilometres and doesn’t come cheap at the bowser. Keep track of the nanny’s mileage, and reimburse them accordingly.

Currently, the rate set forth by the Miscellaneous Award is $0.91 per kilometre.

Discretionary benefits

9. CPR certification

It’s a good idea to pay for your nanny to get CPR-certified. It’s not a must, but it’s worth the investment for the safety of your children. Various providers offer CPR courses, so it’s worth shopping around for the best price.

10. Continuing education

Occasionally families will offer to cover the costs of continuing education, such as childcare or child development courses. While not a requirement, it can show that you’re invested in your nanny’s development as a professional—and your kids reap the benefits, too.

11. Annual bonuses

A bonus is a lovely way of showing appreciation for a nanny’s hard work and dedication, and it doesn’t have to be exorbitant. Many nannies appreciate simply having an extra week’s pay presented as an annual bonus at the end of each employment year or around Christmas time. Some employers, however, opt to pay a bonus of two week’s pay. In the end, it’s up to you.

12. Extra perks

When it comes to benefits, think outside the box. Consider adding a nanny to your existing gym membership or offering them one Friday off per month, if you’re able to. Not only will perks like these help attract the best nanny, but they’ll help retain them, too.

Think about what you as a family have that the nanny might value. This could be VIP access to sporting events, use of your holiday home, or a free breakfast at your family-owned café, for instance. Consider using that to show your appreciation for your nanny’s dedication and hard work. Just be sure to consult with your tax professional to ensure you are complying with any necessary reporting for tax purposes.

Most importantly, regardless of the benefits you decide to offer, make sure each is clearly outlined in your initial agreement with your nanny and don’t add any surprise duties or changes in benefits down the road.

Nannies wants to feel comfortable with the family they’ll be working with and that there are reasonable expectations of them, with no nasty surprises.

Remember: nannies have lives, too. Just like you, they also have parent-teacher nights to attend, holidays to go on, etc.