If you or your ageing loved one needs more help than family can provide, your options for professional care—and their associated costs—can vary drastically. One option is to have private home care provided by a caregiver who may work in an elderly person’s residence part-time, full-time, or even live-in. This type of care isn’t cheap, and rates vary depending on a range of factors. However, it’s usually cheaper than a room in a nursing home.
In addition to this, in-home care is more personal and customized to the person’s needs. You’ll pay a higher rate for a caregiver who specializes in certain conditions or has advanced qualifications, but if your budget allows, the additional expertise may be worth it.
Providing quality care to elderly people requires an understanding of how to communicate well with those who are experiencing a variety of age-related health conditions, while also understanding the emotional challenges that come with living longer.
How much does private home care for an elderly person cost?
As frustrating as an answer of “it depends” can be, it’s the reality. Rates vary depending on your geographic area, the care recipient’s needs, and the caregiver’s experience and background.
Location makes one of the biggest impacts on rates. According to ComfortLife.ca ’s calculations for 2023 and 2024, home-based caregivers should be paid a minimum of CAD 20–30 for in-home care and/or companionship, whereas more professional nursing services usually cost CAD 50-60.
These rates may vary within each region, e.g. city centers are often more expensive than rural areas. Rates may also vary depending on the carer’s level of expertise and experience, as well as the level of care they’re required to provide. A carer who is providing around-the-clock care for an individual with a severe case of dementia is most likely going to charge more than someone providing part-time assistance with basic daily activities such as doing the grocery shopping and getting up flights of stairs.
Typically, when a client’s care needs increase, they require care from a caregiver with additional training or certification. Clients with advanced dementia may need more care from a professional trained in cognitive support. Older people with medical complexities may require care from a registered nurse or healthcare assistant who can change simple dressings, help with medical equipment, and assist with medication. These skills mean a higher quality of care, but potentially also higher rates.
Keep in mind that when compared to nursing homes or assisted living, however, in-home care is still far more budget-friendly. Added to that, one of the major benefits of in-home care is that you have a dedicated caregiver. Residential care homes cost from CAD 200 to CAD 250 per day, while nursing homes, which have a registered nurse on hand to provide medical care at all times, can cost anywhere from CAD 5,600 to CAD 7,000 a month. Care homes usually have 1–2 members of staff per resident.
What should I factor into a caregiver’s pay rate?
Geographic area
Your location plays one of the biggest roles in how much you’ll pay for a caregiver. Hourly rates are higher in areas with higher costs of living, and significant competition for caregivers for the elderly can also push up costs.
Types of duties and tasks
Caregiving rates also vary based on what level of assistance the elderly person needs. Duties that require higher caregiver pay include those that need a higher level of skill, such as dressing wounds, and more dedicated, hands-on care, such as caring for someone who is bedridden or recovering from a major surgery.
You may pay more if you need someone who:
- Has training to administer medication;
- Does household tasks such as cleaning, cooking and laundry;
- Transports the person;
- Performs certain hygiene tasks such as bathing;
- Handles medical tasks such as wound care.
Before you hire a caregiver, it’s important to explicitly cover what tasks are and aren’t included in their rates so there are no surprises on either end.
Experience and specialization of the caregiver
Caregivers for the elderly who have years of experience and specialization can ask for higher rates than caregivers with less time under their belt. Those who have earned certifications or completed relevant training or licencing may also charge more. For example, a registered nurse will charge more than a caregiver with no medical training.
Although having formal qualifications is not essential to work as a caregiver, they can improve your career prospects. And even carers without qualifications should adhere to the standards set out according to different certificates and programs in Canada in their daily working life.
While some caregivers do general work, a lot of them will specialize, especially as they advance in their career. Just as you wouldn’t hire a painter to do your plumbing, caregivers are professionals too, and they have specific training and work experience. Certain caregivers, for instance, specialize in end-of-life care and have been trained to work in hospitals, while others may specialize in caring for people recovering from a stroke.
Type of employment
Costs can also vary depending on whether the caregiver works independently or is employed by an agency. Both have their benefits and drawbacks; agencies usually charge higher fees than the individuals, but they also vet caregivers and ensure minimum standards are met.
Home care agencies charge more due to additional overhead costs, such as employer’s liability insurance. Older people who have accumulated a lifetime of assets need to remember that caregivers are employees, and they will want to maintain all the protections necessary for employee injuries. Many families are aware that having these protections in place is more than worth the extra few dollars per hour.
If you hire a caregiver directly, it’s worth looking into offering some of these protections yourself, which add to the upfront cost but can protect your finances if your caregiver is hurt on the job and sues.
What extra costs are not included?
You may find that some additional costs aren’t included in the base rate, such as:
- Agency fees. If you hire your caregiver through a service or referral agency, the additional fees may be bundled into your caregiver’s rate, or you may pay the agency separate fees. These help cover the costs of hiring, vetting, matching, and insuring their employees.
- Benefits. Depending on how you hire the caregiver and how many hours they work for you, you may need to budget for occasional raises, bonuses, overtime, and paid sick or holiday days.
- Additional certifications. If your caregiver doesn’t possess certifications that you require them to have, such as CPR, you may need to pay for the cost of these non-essential certifications.
- Taxes. When you hire a caregiver to work in a home, they’re considered an employee by the Canadian government. This means you may be responsible for withholding and paying taxes on their behalf. If you hire through an agency, they typically take care of this, but if you hire directly, you’ll have to manage payroll and taxes. It’s wise to meet with an accountant to determine how this will impact your taxes and to ensure everything is handled properly.
Finding the right balance
In the end, the costs of in-home elderly care can vary quite a bit depending on the person’s needs, where you live, how you hire a caregiver, and what types of skills or training you require. If you’re on a tight budget, you may have to compromise on experience and skills.
But even if you require more specialized caregivers on the pricier end of the scale, keep in mind that this option is often more flexible, cost-effective, and comfortable for older people than moving to an unfamiliar facility.