You’ve had a successful interview for a nanny job. You like the family, and the family likes you. Now it’s time to answer their next question: “What do you charge for your nanny services?”
How much you charge for your nanny services will depend a lot on where you live, what you bring to the table, and—perhaps most importantly—what you’re being asked to do. Tasks like preparing meals or doing laundry will take additional effort on top of caring for children, and you want to be sure you’re paid what you’re worth. Here’s how to figure that out.
What to consider when determining your rate
In addition to your budget and that of the family, deciding on a pay rate involves considering your location, your background, and how much work is involved.
1. Average nanny rates for your area
Base rates are often dependent on how expensive it is to live in a given place, such as the average cost of rent or the price of groceries. If a particular city has a shortage of qualified nannies, that might also mean higher prices overall, as families compete for the few who are available.
Looking up average rates for your area is a good starting place—you can always go up or down based on your experience or expected duties.
Here are some examples of the going nanny rates based on location, according to recent Care.com data.
Current nanny rates for top cities
| CITY | HOURLY NANNY RATE |
|---|---|
| Sydney | $ 28.87 |
| Melbourne | $ 27.63 |
| Brisbane | $ 26.44 |
| Perth | $ 25.00 |
| Adelaide | $ 24.79 |
| Gold Coast | $ 26.47 |
| Newcastle | $ 25.72 |
| Canberra | $ 25.94 |
| Sunshine Coast | $ 26.76 |
| Central Coast | $ 25.00 |
2. Your experience
How many years have you been working as a childcare provider (including babysitting and in places like a childcare facility)? How many years have you been working as a nanny, specifically? The more experience you have, the more you can charge.
It’s important to note that this generally refers to paid work experience only. Experience raising your own children can help your CV and tip the scales in your favour during the hiring process, but it shouldn’t factor into how much you charge for your nanny services.
3. Your level of education
Do you have a university degree? How about a master’s? Nannies with higher education are typically able to charge more, especially if the degree is relevant to childcare, such as a Bachelor’s degree in Early Childhood Education or a Master’s in Child Psychology. Someone with a graduate degree can charge, on average, about two dollars more an hour than someone with a Senior Secondary Certificate of Education.
Other licences or certifications could also give you leverage to charge more. Families will often pay extra for nannies who are registered nurses or teachers, for example, because of the expertise they’re able to provide.
4. The number of children and their ages
Caring for four kids is significantly more challenging than caring for one. And those with medical or behavioural issues might require more attention than other children. That extra workload should be taken into consideration when you’re determining your pay rate.
Something many nannies of younger children don’t take into consideration is after-school or summertime care for school-aged siblings. Nannies whose families have school-aged kids should talk about those issues up front and figure out what kind of compensation will be provided during summer months in particular.
5. Other benefits
Consider charging slightly less if it means gaining some other perks or benefits, such as room and board or being able to bring your own child with you.
When a family allows you to bring your child with you while you’re working, you might want to accept lower rates for your nanny services, because it helps you save on childcare costs yourself.
What to charge for additional services
It’s not uncommon for nannies to pitch in here and there with household tasks during naptime, but if you’re regularly being asked to do things unrelated to childcare, you should factor that into your hourly rate.
Any cooking or light housekeeping pertaining to the children should be standard for any nanny, as well as driving to and from activities.
If you regularly cook for the whole family or do the household laundry, it’s typical to add a dollar or two to your hourly rate. Likewise, if you use your own car to transport children, it would be appropriate to ask the family to give you a predetermined mileage rate to cover the cost of petrol and any normal wear and tear on your vehicle.
In addition to cooking, cleaning, and laundry, other services you should consider charging extra for may include:
- Dog-walking or other pet care.
- Administering medications.
- Doctor visits.
- Grocery shopping.
- Tutoring.
- Managing tradespeople, such as gardeners or builders.
- Buying gifts.
- Party planning.
When do you ask for a pay rise?
Even if they’re already working with a family, nannies can still negotiate for more pay, often as part of routine performance appraisals.
As the children they care for grow (especially infants), the job duties will evolve and potentially become more demanding. Therefore, it is recommended to ask for a job evaluation every six to nine months to discuss your performance and changing responsibilities, as well as a fair rate increase.
Furthermore, experts suggest nannies ask for at least $1/hour pay rise each year, unless a change in job duties warrants a larger increase. As an alternative, the family could provide an annual performance bonus in lieu of upping the hourly rate. Regardless, nannies should incorporate both the routine appraisals and either the rate increase or annual bonus into their nanny contract, so everyone is on the same page about what to expect.
Setting a pay rate for your nanny services isn’t a perfect science. You might propose a starting rate you think is appropriate, only to realise later that the compensation doesn’t quite match the workload. One way to avoid that might be to incorporate a three- or six-month trial period into the nanny contract, giving you a built-in timeline to revisit payment early on. And if you do get into a situation where you think you’ve made a mistake with your rate, don’t hesitate to speak up. Many families want to give their nannies a fair wage—but it’s up to you to communicate what that is and why.