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Nanny Salary Guide

How Much Do I Pay a Nanny?

Setting a salary for a nanny can be a tricky proposition. When presented with the issue, many people are completely unsure about how to proceed. From the parents’ standpoint, throwing a random number out there is never a good idea. From a nanny’s point of view, it is important not to be sold short in terms of pay. The following guide includes many tips, techniques, strategies and pieces of advice that help to shed light on this vexing issue. By reading through it, nannies and parents alike should feel more confident about how to proceed.

Ways to Set a Nanny Salary

  1. Sit down and map out the amount of actual work that your nanny will be doing. What will her daily responsibilities be? Will she be working non-stop throughout her daily shift?
  2. Will your nanny live with you, or will she come in every day? Room and board will play a role in how much money you have to pay your nanny; a live-in nanny will cost you less cash because room and board are forms of compensation.
  3. The number of years of experience that a nanny has will play a role in how much she pay she expects. If you want an experienced nanny, you will have to pay more.
  4. You will have to factor in things like health insurance and taxes. Leaving these things out will cause you to end up with unrealistic salary levels and could result in a lot of confusion.
  5. The amount that you pay your nanny should not exceed 35 percent of your pre-tax income. Exceeding that amount could make it difficult for you to afford your nanny.
  6. The quality of a nanny’s references must be taken into consideration when determining her salary. Are her references recent? Do they come from people with whom you are familiar? Great references will result in higher pay.
  7. If an agency is involved, you may not have a lot of wiggle room when it comes to determining a nanny’s salary. Make sure that you have an idea about what nannies from that agency earn before you proceed.
  8. How much education does the nanny have? Highly educated nannies can command higher salaries than those who do not have extensive educational backgrounds. Education is valuable, so you should expect to pay more for it.
  9. How many children will be under the nanny’s care? Understandably, the cost of hiring a nanny for a single child is going to be lower than hiring a nanny to watch over three or four children.
  10. Figure out how many hours the nanny will be working per week. If the total exceeds 40 hours, you will have to factor in overtime pay, which will raise the amount that you have to pay your nanny.

Location Matters when it Comes to Nanny Pay

  1. The median income of your specific region will play a role in how much you pay your nanny. Nannies in more upscale areas generally make more money.
  2. The going rate for nannies in the area is a huge factor in how much you can expect to pay. Any nanny that you consider should be aware of what the going rate is and will demand a salary accordingly.
  3. How many nanny agencies are in your area? Areas that have higher concentrations of such agencies tend to have higher average nanny salaries.
  4. Is your home accessible to public transportation? The less cumbersome it is for a nanny to arrive at work each day the less you should have to pay. If you live off of the beaten path, you can expect to pay more.
  5. The quality of the schools in your area will play a role in how much you will pay your nanny. High-quality, experienced nannies tend to flock to areas that have great schools.
  6. Is there room in your home to accommodate a live-in nanny? Live-in nannies actually cost less money out-of-pocket than those who come in and leave each day.
  7. Your proximity to colleges and universities will play a part in how much you can expect to pay your nanny. College towns tend to have more nannies available, and the glut usually results in lower salaries across the board.
  8. The amount that you pay your nanny will probably be lower if you live within a reasonable distance of parks and other activities. The easier it is for your nanny to keep the kids occupied the less you can expect to pay.
  9. Living in a rural area can be a double-edged sword. If it’s difficult for nannies to get to your home, you will pay more. Lower median incomes, however, may mitigate the amount that you ultimately pay.
  10. There is more competition in urban areas, but the amount that you pay will depend on the specific neighborhood in which you live.

Factor in a Nanny’s Room and Board

  1. Figure out the value of the meals that you will be providing for your nanny. You can exclude that amount from the total amount of her salary.
  2. Figure out the value of the lodging that you will be providing for your nanny. This will also reduce the amount that you will have to pay her.
  3. Calculate the size of the room that your nanny will have. The more space that she will have the higher the value her room and board will be.
  4. Will your nanny have a basic room, a suite or an actual apartment? The features of her living space will play a role in how much money you will have to pay her. If she has an actual apartment with a kitchen, her room and board will be more valuable.
  5. Keep in mind that the room and board that you provide are considered to be a part of your nanny’s compensation. If you didn’t provide it, she would have to go and get them elsewhere.
  6. Will your nanny have her own bathroom, or will she have to share one with your family? By giving your nanny more privacy, you increase the total value of the lodging that you provide.
  7. How much would similar lodging elsewhere in your town or city cost your nanny? Figure out the square footage of her quarters and find out what the going rate is for similar space.
  8. How much will your nanny save by not having to pay for utilities? Unless you plan to somehow charge your nanny for utilities, you should factor this expense in as well.
  9. Will you be providing perks like cable TV, Internet, a laundry room and other things? All of those features would cost your nanny a lot more money in a regular apartment. As such, they should be taken into account when calculating salary.
  10. Presumably, your nanny will not have to deal with a roommate when she works for you. Her standard of living will be higher, which will be a great incentive. You can use that fact to pay your nanny a little less.

Handle Salary versus Overtime Hours

  1. Figure out if you will be able to get by with a nanny who strictly works 40 hours per week. Will that cover you and your spouse for all of the hours in which you will be gone?
  2. If you are going to need a nanny for more than 40 hours per week, you are going to have to pay her overtime. It is important to figure this out as early as possible.
  3. The U.S. government requires you to compensate your nanny for any overtime that she works. You must pay her extra wages for every hour over 40 that she works each week.
  4. In terms of compensation, you are required to pay your nanny a rate of 1.5 times her regular hourly rate for every hour over 40 that she works each week. Keep this in mind when you are calculating her salary.
  5. If overtime is going to come into play, you can roll it into your nanny’s weekly or monthly salary. Figure out how many hours of overtime she will be working and adjust her weekly or monthly salary accordingly.
  6. Come to an agreement about salary with your nanny before she begins working with you. She must agree to any overtime that she will have to work.
  7. If your needs change over time, you can always adjust things. If your nanny’s pay will decrease due to those changes, however, she may decide to seek greener pastures.
  8. In order to avoid paying overtime, you could juggle your work schedule. If possible, work it out so that one spouse works slightly different hours than the other.
  9. Another way to avoid paying overtime is by scheduling your children’s activities to reduce the burden on the nanny. If she drops them off at an activity, schedule it so that you can pick them up. She would go off the clock after she drops them off.
  10. Do not determine your nanny’s weekly hours down to the wire. It is important to leave some wiggle room in case issues arise. It’s worth it to pay a tiny amount more in order to reduce stress.

Why it is Important to Pay Nannies Well

  1. A quality nanny is more likely to develop a great relationship with your kids. That relationship will provide many benefits through the years.
  2. Educated nannies command higher salaries. It is worth it to hire one, though, because she will enrich your child’s life in many ways.
  3. A live-in nanny provides more security, especially for younger children. You can get away with paying a live-in nanny less in terms of salary, but make sure that her room and board benefits are great.
  4. Paying a nanny well reduces the odds that she will quit to find better pay elsewhere. Your children will benefit from having the same nanny over a long period of time.
  5. It is important for kids to have as many people to turn to as possible. A high-quality nanny can be one more person, which can pay off well for your child.
  6. Nannies who are trained in first aid and CPR typically cost more. However, those skills could prove to be the difference between life and death and can help to lessen the odds of serious injuries to your children.
  7. It is worth it to take the time to find a nanny who genuinely loves kids. An energetic, fun nanny can be a huge asset, and it is worth it to pay more for those types of skills.
  8. Nannies who are willing to lay down the law when necessary tend to get paid more than less strict nannies. Make sure that the nanny you choose balances out that strictness with kindness.
  9. You are more likely to find a nanny who abides by your wishes and rules when you are willing to pay more. Skimping on the amount that you pay your nanny is never a good idea.
  10. Highly compensated nannies tend to be happier in general. Happier nannies generally provide higher quality care than those who are barely eking out livings.

Advantages of Passing the INA Exam and Getting Other Certifications

  1. As a nanny, being able to show prospective employers that you have passed the INA exam will make you more credible. It is not something that all nannies do, so it can be very beneficial.
  2. Obtaining your certifications in first aid and CPR will make you more marketable as a nanny. Parents want to know that you can handle emergency situations.
  3. Going the extra mile by obtaining as many certifications as possible is well worth it. The amount of effort that it requires is more than balanced out by the increased job opportunities and better pay rates.
  4. Certifications serve as concrete proof of your skills and abilities. Instead of expecting prospective employers to take your word for it, you can show them documentation that proves that you have what it takes.
  5. Parents will be reassured when you present them with a wide range of different certifications. It will make them feel more certain about your capabilities.
  6. You should be able to command a higher salary when you have plenty of certifications. Your clients will see that you have taken the time to invest in your skills, which makes you more marketable and valuable. You can justify your salary requirements through those certifications.
  7. You are more likely to beat out other candidates for lucrative jobs when you have a broad range of certifications. When stacked up against someone who doesn’t have any certifications, you will stand out in a positive way.
  8. Certifications look great on resumes, especially when you don’t have extensive amounts of experience. You can balance out a lack of experience by obtaining plenty of high-quality certifications. As your experience increases, you will be able to command even more pay.
  9. By keeping your certifications up to date, you will be able to qualify for consistently good pay. You are more likely to get raises when you do this too. It shows parents that you have a vested interest in learning and growing.
  10. Certifications help you to keep your skills in check. It is easy to forget certain things when you don’t have to put them to work every day. In order to qualify for a certification, you have to have the right knowledge and skills.

Ways to Ask for a Raise as a Nanny

  1. Conduct extensive research about salaries in your area. How does yours compare? If yours falls far short, you could bring it to the attention of your employers in a non-confrontational way. Many clients will agree that you deserve to be paid the going rate and will give you a raise.
  2. Have something extra to offer. Do you go above and beyond the call of duty on a regular basis? You don’t have to point out every last instance, but provide concrete examples when asking for a raise.
  3. Highlight the special bond that you have developed with your clients’ children. Discuss the important role that you play in their lives. Make it clear that you enjoy the children’s company and consider them to be important parts of your life.
  4. Obtain new and better certifications. If your existing certifications are in danger of lapsing, renew them. Be sure to tell your employers about any courses that you are taking, and let them know when you receive new certifications. It will set the stage for a raise request.
  5. Point out the little extras that you provide to your employer. Do you take phone calls for them without being prompted? Do you take the dog out for walks sometimes without being asked? These small things could lead to a raise.
  6. When your yearly anniversary rolls around, always ask about a yearly raise. It is fairly standard to give some sort of raise around the time of a nanny’s anniversary. If it was given in the past, you should get it in subsequent years.
  7. Remember that the parents are not your bosses – they are your clients. If your rate needs to go up, they will have to pay it or find a new nanny.
  8. Keep the value of your room and board in mind if it is applicable. Keep an eye on the going rates for rentals in your area. Stay informed so that you can plead your case for a raise more effectively.
  9. As cost of living expenses rise, your salary should too. Your clients are well aware of cost-of-living increases, but they aren’t likely to offer additional compensation without being asked for it.
  10. If all else fails, tell your clients that you would love to stay on but could get higher pay elsewhere. This may be what they need to hear in order to give you a raise.

Find Out the Average Local Rate for a Nanny

  1. Speak with nannies in your area. What are they getting paid? Most people are more than willing to be perfectly upfront about this topic. For example, in Austin Texas, the average hourly pay for a Nanny is $14.77
  2. Scan the ads on sites like Craigslist. What are nannies offering in terms of hourly rates or monthly salaries? Salaries are not always listed, so feel free to send messages if necessary.
  3. Visit sites like Salary.com to see what their reports have to say about nanny salaries in your area. This is a great way to get a clear idea.
  4. Ask around on playgrounds and in other areas where parents and nannies congregate. Most people will be happy to tell you what they earn or what they pay for their nannies. This information is not usually that confidential.
  5. Check in with local nanny agencies. Find out how much their nannies typically charge. You may have to provide additional information. It’s worth it, though, because it will give you a much more specific idea about what you can expect to pay.
  6. If you are a nanny and want to make sure that you are paid fairly, be sure to keep your skills and level of experience in mind. You may qualify for more or less than the average going rate for nannies in your area.
  7. Pay attention to whether the salaries that you learn about are for live-in nannies or not. Room and board can take a huge chunk out of how much a nanny earns.
  8. Nannies who have certifications tend to make more than those who do not. This can affect the going rate for a nanny in your area.
  9. Do nannies in your area enjoy regular raises? You may start off at a rather low rate, but could earn a raise within a relatively short period of time. If you are paying a nanny, you need to know whether a raise will be expected.
  10. Nannies who do housework and other chores generally make more than those who do not. Include that point when you are asking around about the going rate in your area.

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