How much do nannies make: Key elements that influence their earnings

Nannies are an integral part of the family and play a significant role in making life easier. But figuring out what to pay them can be tricky. 

It’s not just about setting an hourly rate; it’s about considering things like the experience, specific duties they are responsible for, and the cost of living in the area. 

This article will answer the commonly asked question, “How much do nannies make?” and discuss the factors influencing salaries. 

Factors Affecting Nanny Salaries

Experience and qualifications

Nannies with more years of experience or specialized qualifications (such as CPR, First Aid, or a Newborn Care Specialist (NCS) certification) command higher pay. Families value nannies with proven track records, excellent references, and expertise in handling children of various ages or needs.

Location and cost of living

Nanny salaries are heavily influenced by geographic location and the local cost of living. In high-cost areas such as New York City, San Francisco, Washington, D.C., or Los Angeles, where housing, transportation, and everyday expenses are higher, nannies earn between $25 and $35 per hour. 

In contrast, rural or less expensive areas, such as parts of Texas, Tennessee, Ohio, or the Midwest, offer lower wages, with nannies earning around $15 to $20 per hour. This is because the cost of living in these areas is lower, and families often have smaller childcare budgets.

Additional responsibilities and skills

Nannies who take on additional responsibilities beyond basic childcare, such as light housekeeping, meal preparation, or running errands, generally command higher wages. Similarly, nannies providing educational support, such as tutoring or homeschooling, earn more due to the specialized knowledge and extra preparation these tasks require. 

For families with special needs children, nannies may oversee therapy sessions or administer medication, all of which demand specialized expertise and attention. As such, these factors play a significant role in determining the nanny's earnings.

Lastly, nannies who are expected to travel with the family, accompany them on vacations, or remain on call for emergencies usually see their rates increase to reflect the added flexibility and commitment involved.

Number of children in care

More children means more work, managing different schedules, and addressing individual needs. For example, a nanny caring for an infant, a toddler, and a school-age child will need to balance feeding and nap times for the younger children, while helping the older child with homework or extracurricular activities. Hence, nannies caring for multiple children charge higher rates to compensate for the additional responsibility. 

Live-in vs. live-out

Live-in nannies generally earn a lower average nanny salary because room and board are included in their compensation. However, they might work longer hours or have more flexible duties. Live-out nannies who are not provided with housing typically earn higher wages to offset commuting costs and cover their living expenses.

Average Nanny Pay

At a U.S. national level, the average pay for a nanny is $760 per week. Depending on where you live, the average weekly pay can be as high as $1,100 in major cities like San Francisco, Los Angeles, and New York. On the lower end, it averages $600 for cities like Ohio and Maryland.

Nanny Hourly Pay

Hourly nanny wages vary based on location, experience level, and the duties involved. 

On average, nannies can expect to earn between $15 and $30 per hour. However, the rate can climb to $35 per hour for nannies with more years of experience or specialized skills, such as fluency in multiple languages or experience with special needs children. 

Highly experienced or specialized nannies can earn more than $40 per hour in high-demand, high-cost areas like New York City or Los Angeles.

Benefits and Additional Compensation

Offering additional benefits in addition to a salary helps you attract and retain the best talent for your needs. Unlike tipping, compensation doesn’t have to be monetary.

Common benefits offered are health insurance, paid time off, overtime pay, and retirement contributions.

Health insurance

Offering health insurance is one of the most valuable benefits you can provide, especially for full-time nannies. This coverage can include medical, dental, and vision insurance, giving peace of mind and ensuring the nanny’s well-being. 

If full insurance isn’t feasible, a Health Reimbursement Arrangement (HRA) can reimburse medical expenses, including premiums, doctor visits, and prescriptions. For employers with fewer than 50 full-time equivalent employees (FTEs), a Qualified Small Employer HRA (QSEHRA) is ideal, allowing tax-free reimbursements even with just one W-2 employee. 

A monthly health stipend can be a better option if your nanny isn’t a W-2 employee or qualifies for premium tax credits. You can simply provide flexible financial support for the nanny’s insurance costs.

Paid Time Off (PTO)

Paid time off (PTO) includes vacation days, sick leave, and holidays. For full-time nannies, offering vacation days (typically 1-2 weeks per year), sick leave (3-5 days), and paid holidays (such as New Year's, Thanksgiving, and Christmas) is essential for a balanced work-life relationship. Some families also offer personal days for unforeseen events or personal matters. Part-time nannies may receive fewer PTO days but should still be entitled to paid holidays and sick leave in proportion to their work hours.

Overtime pay

When a nanny is asked to work beyond their regular hours, overtime pay should be provided, typically at 1.5x to 2x their standard hourly wage. Overtime pay applies to both full-time and part-time nannies, whether it's evenings, weekends, or during holidays. Families should establish clear guidelines for overtime in advance for a fair and transparent work arrangement.

Retirement contributions

Offering retirement plans like a 401(k) or a simplified employee pension (SEP) is a great way to ensure long-term financial security for full-time nannies. If you can afford it, offer matching contributions to help the nanny save for the future. For part-time nannies, retirement contributions may not be as feasible, but families can consider offering contributory plans or other savings options that are in proportion to their hours worked. 

Factors to consider when adjusting a nanny’s wage

When adjusting a nanny's wage, it's important to consider several factors that reflect their experience, responsibilities, and loyalty.

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• Nannies with more years of experience typically bring greater expertise, reliability, and skills. Adjusting wages based on experience shows appreciation for their knowledge and capability.
• If a nanny has been with your family for an extended period and has consistently performed well, offer a raise to reflect their loyalty.
• If the nanny's role expands to include tasks beyond basic childcare (e.g., light housekeeping, meal preparation, managing schedules, or running errands), their wage should reflect these additional responsibilities.
• Nannies who take on specialized roles, such as providing educational support, caring for children with special needs, or managing medical care, receive higher pay due to the expertise and additional responsibility these tasks require.

• If the nanny is expected to travel with the family, attend vacations, or work irregular hours, this added flexibility and disruption to personal time should be compensated.

How to negotiate compensation effectively

Negotiating requires preparation, clear communication, and a focus on mutual benefit. Start by researching market rates to ensure your offer is competitive. Then, consider the nanny’s experience, skills, and scope of responsibilities. 

It’s important to stay professional, remain open to compromise, and ensure that the terms are clearly outlined in writing, including any potential future raises or adjustments. A trial period can also be a good way to assess the arrangement and make adjustments if needed.

How much do nannies make: Main Takeaways

In conclusion, a nanny’s salary is influenced by factors such as experience, location, and additional responsibilities. More experienced nannies or those with specialized skills tend to earn higher wages. The local cost of living and the number of children in care also affect pay. Offering clear, detailed contracts and considering flexibility, such as overtime or irregular hours, ensures both parties are aligned on expectations and compensation.

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