How to Determine Nanny's Salary

Few employees are as indispensable - or as much a part of the family - as a nanny. It is therefore very important to make sure that your nanny's compensation is fair. However, several factors should be taken into consideration before deciding on a final figure to offer your childcare provider.

First, you must take into consideration the specifics of the job you are asking your nanny to perform. Caring for a single infant is much more difficult than taking care of two toddlers. If you have two or more children, you should shade your nanny's salary towards the upper range of the spectrum. Additionally, take into account whether your nanny has any additional assistance (a cook, maid, etc.). If not, your nanny probably deserves more compensation for her efforts.

Second, verify your nanny's experience level and adjust her salary accordingly. A nanny who has been working in the field for thirty-five years understandably commands a larger salary than someone who is new to childcare. Also, take the time to call and check up on your nanny's references, if applicable. Not only is this an important step in verifying her credentials and ensuring your children's safety, but a nanny who receives particularly glowing laudations from previous employers may well deserve a little extra pay.

Next, consider your nanny's living expenses. If you are providing her with room and board (that is, if she is a "live-in" nanny), these amenities will necessarily come with a slightly smaller paycheck. However, remember also that a live-in nanny is on call 24 hours a day. While it's true that they needn't worry about paying rent, live-in nannies often work more hours than their live out counterparts. Keep this in mind when determining your nanny's salary.

If you provide any additional benefits to your nanny - such as health insurance, a retirement plan, a cell phone, or a car - the costs involved can, just like at any other job, be taken partly out of her salary.

So how much should you pay your nanny? The average rate is anywhere from $25,000 to $40,000 per year (approximately $480 to $770 per week). To determine where your family fits on this scale, take into account all the considerations discussed above. If you have one child and are seeking a live in nanny, $25,000 may be a very competitive figure. If you have three children and expect your nanny to commute, that figure would probably not be enough.

Above all, make sure that you and your nanny understand and agree that she is making a fair salary. Remember that the best nannies are more than just employees: they're extra family members, entrusted with caring for your children. Make sure your nanny's salary reflects that responsibility.