6 Factors that Affect Nanny Salaries

Unlike with union jobs or corporate jobs where the salaries for specific job types are fairly standardized, nanny salaries vary greatly from state to state and nanny to nanny. Determining a nanny salary based on the nanny’s market value and the employer’s budget can be a bit of a balancing act. According to the 2012 International Nanny Association Salary and Benefits Survey, full-time nannies earn on average, $700 gross per week. As you consider the salary for a nanny candidate, keep in mind these 6 factors that influence nanny salaries most. 1. Location. Where you live will significantly affect the nanny’s salary. Nannies who work in major metropolitan areas typically earn more than those who work in rural areas or the suburbs. The highest nanny jobs tend to be found in cities like Boston, Los Angeles, Beverly Hills and New York. 2. Living Status. Whether your nanny lives-in or lives-out can affect her salary. While years ago there was a substantial difference in live-in and live-out nanny salaries, that is no longer the case. Live-out nannies typically earn $50 to $100 more per week than their live-in counterparts. Live-in nannies receive room and board, in addition to their compensation. 3. Experience. The more experience a nanny has, the more her earning potential is. Nannies with more than a decade of experience significantly out earn those who are just entering the field. If

you are looking for a nanny with specialized experience, such as caring for multiples, children with allergies or high needs children, you can expect to pay more. 4. Education and Training. At minimum, all nannies should have a high school diploma or its equivalent, CPR certification and first aid certification. Nannies who hold degrees in early childhood education or who have completed a formal nanny training program earn more than those nannies who have not. Some nannies may have an educational background as a teacher, nurse or family psychologist. These nannies typically command higher wages. 5. Duties and Responsibilities. Nannies are typically responsible for the complete care of the children and all of the childcare tasks related to providing that care. Nannies are generally responsible for keeping the children’s areas, including their bedrooms and bathrooms, neat, clean and organized. They are also responsible for doing the children’s laundry and for picking up after themselves and the children. If a nanny is asked to take on additional tasks, like doing the family’s laundry or grocery shopping, she may expect to earn more. 6. Hours. Nannies must be paid according to the Fair Labor Standards Act. By law, all nannies are required to be paid for each hour worked at least minimum wage. Live-out nannies are entitled to overtime pay at the rate of 1.5 times their base hourly salary for any hours worked over 40 in a 7-day period. Live-in nannies, in some states, are also required to be paid overtime. Most nannies work 40 to 60 hours per week. The more your nanny works, the higher her salary will be. Parents who are able to offer benefits, like partial or full payment of health insurance premiums, have more negotiating power. They may be able to negotiate a lower salary in

exchange for additional pre-tax benefits. On top of the nanny’s salary, nanny employers are required to pay taxes. The taxes on a nanny’s salary total approximately 10% off the nanny’s annual salary. While there are tax credits available to parents who pay their nanny legally, it’s important to consider these additional out of pocket nanny employer expenses.

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One Response to 6 Factors that Affect Nanny Salaries

1. Theresa says:

   December 11, 2012 at 9:48 pm

   hi I like monkeys and candy this helped me a lot with my L.A. essay. All about nannies so this would come in when she asks, “what factors influence how much a person earns in this career