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How to Determine the Right Salary for Your Childcarer

You'll need to determine what kind of person you're looking for, what her duties will be, and how much you can afford to pay her.

How to Determine the Right Salary for Your Childcarer

One of the first things a family has to do is think about the job description – what kinds of responsibilities they’re having the nanny take on – and then based on that, develop the salary. Even though you might have a limited income coming in, you have to realize this is the nanny’s full time job.

Assessing Your Child Care Budget
The going rate varies by region, but you can check with the National Childminding Association or look up rates on Nannytax.
 
As you assess your child care budget, think about what qualities are important to you in a nanny or childminer – do you require a childminder with a university degree in early childhood education, are you OK with a nanny who’s raised children herself, or perhaps one who isn’t a mum but has a lot of experience? The amount you offer should take experience into account.
 
Other factors to consider:

  • Childminder’s Age: Pay younger carers, who generally have less experience, less than you would pay someone older. That said, if a carer stays with you for many years, increase her wages as her experience increases.
  • Location: If you live in a big city, expect to pay more for a babysitter than someone who lives in the country. Higher cost of living = higher wages.
  • Experience: A sitter who knows CPR and has tended to big groups of children will cost more. And rightfully so! Specialized training should always be rewarded.
  • Number of Children: Childminders usually charge about £3.84 per child per hour (NCMA 2011), so if you have more than one child, expect to pay more.
  • Time of Day: Pay more if children will be awake while you’re gone. If the carer will put the children to sleep, lock the doors, and watch telly, you can pay less.
  • Activities: One child has football practice, the other needs to go to the dentist. And they both need to be at the supper table at 6. Pay more if a childminder will need to leave the house.
  • Transportation: If you’re not driving a nanny or babysitter to and from her home, reflect that in her rate of pay.

 
Determining Job Responsibilities
After you know who you’re looking for, you should create a written job description. This will outline the child care duties, like food preparation, feeding and bathing, driving to doctor’s appointments or setting up play dates. Parents should be as detailed as possible about these tasks and how often they’ll need to be done.
 
If parents are going to ask their nanny to do some household chores, perhaps when a child is napping, make sure these are generally nursery duties, like doing the child’s laundry.
 
You should make it clear in the description that the nanny’s primary responsibility is the child, and make sure to give her time to take a break.
 
The housekeeping responsibilities should not be so overwhelming that the childcarer is more focused on getting those things done rather than interacting with your child.
 
When you’re ready to make an offer, create a written work agreement and a list of house rules.

 
Work Agreement or Nanny Contract
The work agreement spells out hours, salary, how taxes will be handled, overtime, holiday and benefits.
 
Pay your nanny’s taxes and NI, provide paid holiday, bank holiday pay, and some sick days, too. Consider an annual raise that is part cost-of-living-based, part performance-based, and an annual bonus of a week’s salary if you can. Nannytax is a good resource for learning more about tax and payslips etc.
 
Make the job attractive so that your nanny is likely to stay. There may be low-cost things a family can offer their nanny instead of extra pay, like adding her to your gym membership or providing a mobile.
 
Finally, the work agreement should also spell out any situational changes that would alter the pact, like if the hours or duties increased, or if a new child was coming into the home. If there are additions to the job, then a salary adjustment may be considered. Be honest about how much you can afford and be fair to the person taking on the job.

 
While there are multiple factors to consider when determining the salary for your childminder like location and experience, you always want to do what’s right for your family. Childminders often charge similar rates depending on neighbourhoods, but be sure that if you are paying over the odds, it is for a reason, for example experience or extra services offered such as school pick-up.