If you’ve narrowed down your choice of child care options and have decided that hiring a nanny is the right option for your family, you’re probably wondering: Can we even afford a nanny? As with any child-care option a parent considers, it’s crucial to know up front what it’s going to cost so you can look at your budget and plan accordingly.
According to a 2020 article from the Globe and Mail on the financial sense of hiring a nanny, the national average cost of a full-time nanny for one child averaged CAD $800–1,000 per week, or between CAD $20 and CAD $25 per hour.
How much is a nanny?
According to thenannysolution.ca, the national average cost of a full-time nanny for one child averages CAD $1,000 per week, or about CAD $25 per hour. You can find most current average rates for nannies, depending on location and number of children, with our cost of child care calculator. But there are several other factors to keep in mind when discussing a nanny’s pay rate.
What should I factor into a nanny’s pay rate?
The cost of hiring a nanny has many variables, including where you live, what the nanny is hired to do, and how much experience they bring to the position.
Geographic area
One of the biggest factors in how much you’ll need to pay for a nanny is where you live. Hourly rates for nannies vary widely from one community to the next. Those living in areas with a higher cost of living generally pay more for nanny services than in lower-priced areas. Competition can also be a factor. Cities with fewer experienced, well-qualified nannies will pay them more than in places where competition isn’t quite so fierce.
Here are some examples of the going nanny rates based on location:
Current nanny rates for top cities
| CITY | HOURLY NANNY RATE in CAD |
| Toronto | $18.96 |
| Montreal | $18.38 |
| Vancouver | $19.80 |
| Calgary | $18.56 |
| Edmonton | $17.88 |
| Ottawa | $17.84 |
| Winnipeg | $16.48 |
| Quebec City | $16.31 |
| Hamilton | $18.36 |
| Kitchener | $18.69 |
Beyond cost of living, commuting can also play a role. For instance, if the nanny has to commute, the nanny will be taking into consideration the cost of their time in transit and mileage, especially if the hours are part time.
Looking up average nanny rates for your area is good starting place — you can always go up or down based on expected duties or nanny’s experience.
Types of duties and tasks
In addition to where you live, what you’re asking the nanny to do could also affect how much you’ll pay. Caring for more children, for example, usually means more work for the nanny, and therefore, a higher pay rate.
The specific tasks included in the job description of a nanny can change from one family to the next, but hiring a nanny is still about making a family’s life easier. That means tasks may range from party organization and grocery shopping to organizing and planning schedules. It can be a lot of hats for one person to wear, and ironing things out can make both parties’ lives easier.
Circumstances that might make the price of nanny services go up or down include:
- Number of children.
- Ages of children.
- Driving to and from activities — typically covered in the form of using a household vehicle or paying the nanny a mileage reimbursement if they have to use their own car.
- Household tasks, such as cooking, laundry, cleaning, or dog-walking.
- Errands like grocery shopping or picking up the dry cleaning.
- Managing contractors or other household employees.
- Event planning.
How much more a nanny should earn for these non-child-care tasks is between the family and the nanny. It should be something that’s discussed during routine pay assessments and written down in a nanny contract or workers agreement.
Experience and background of the nanny
If families are looking for someone with a lot of training or background in a specific area, they should be prepared to pay more for that experience.
Nannies with bachelor’s and master’s degrees that are especially related to early childhood education typically have a higher earning potential. Nannies with specialized training or experience with niche circumstances, such as caring for multiple children or children with special needs, generally also earn more.
What extra costs are not included in a nanny’s pay rate?
How much you pay your nanny is only part of the equation. When you’re budgeting for nanny services, you should also take into consideration other costs, like nanny taxes, background checks and supplemental care when your nanny is sick or on vacation. These additional expenses include:
- Nanny taxes: According to the Canadian Revenue Agency, nannies (full-time or not) can either be employees or self-employed — meaning families might be responsible for not only withholding provincial and federal taxes for the nanny, but also covering the costs of taxes typically paid by other kinds of employers. For the tax year 2022, “nanny taxes” kick in when the nanny makes more than $2,400 in a calendar year, and how much they are varies by location. If you aren’t sure how much nanny taxes are in your province, this Nanny Payroll and Tax Service can give you an idea of what you’ll need to pay. Note: These taxes apply even if you hired your nanny through an intermediary, like a service or website.
- Payroll services: Some families opt to use a payroll service or accountant to manage the nanny’s paycheck and nanny taxes, which can also be an added cost.
- Intermediary agencies: If you hire a nanny through a referral agency or nanny service, these organizations will generally charge fees to vet and recommend nannies for you.
- Periodic background checks: Background checks for nannies prior to hiring them on, as well as on an annual or routine basis, are also an added cost. Typically, the more in-depth the background check, the higher the fee. Note: Not all Canadian nanny agencies provide a background check. Sometimes, it is the parents’ responsibility to ask the nanny for a background check. Make sure to take standard precautions when hiring a new nanny.
- Additional certifications: Families insisting that their nannies be up-to-date on CPR and first-aid certifications will often pay for them to be renewed every few years.
- Raises, bonuses, and overtime: Like many different types of employees, nannies expect to receive routine raises and/or bonuses and are entitled to overtime pay (time and a half) if they work more than 40 hours per week, according to the Canadian Ministry of Labour. How much you should give in raises or bonuses is between you and your nanny, but a 2–3% cost-of-living raise, in addition to a 5–7% merit increase, is fairly standard.
- Supplemental child care: Many families choose to give their nannies paid sick leave or vacation days. During that time, families might need to pay for supplemental, short-term child care, such as an emergency babysitter or drop-in child care, if family members are unable to fill in.
How much a nanny costs can differ widely from one family to the next, based on circumstances, expectations, and experience levels. Families interested in hiring a nanny should start by looking into the costs of nannies in their area and taxes in their province and adjust their budget from there.
