How Much Does a Live-in Nanny Cost?

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How Much Does a Live-in Nanny Cost?

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Are you thinking about hiring a live-in nanny? One question you will have is how much does a live-in nanny cost? You might think it would cost more to hire a live-in nanny compared to hiring a live-out nanny—one that does not live in your home. Yet, you might be surprised to learn, there is not much difference in the costs of hiring a live-in and live-out nanny.

How Much Do Nannies Earn?

According to the INA Nanny Salary and Benefits Survey from 2017, nannies at that time earned a national average of $19.17 per hour.1 Given that the survey was conducted three years ago, you should use this amount as a reference point, not the amount you should pay a nanny.

The average hourly earnings should also be considered the same whether you hire a live-in or live-out nanny. Why? Essentially, the nanny is working the same number of hours per week, whether they live in your home or their own. As such, you would not pay a live-in nanny less simply because he or she was living in your home.

Another consideration when determining the amount to pay your nanny is the average wages in your area. For instance, the average wages will be higher in California, New York, and other states with a higher cost of living.

To get a good idea of the average wages in your area, you could talk to your neighbors and friends that have nannies to find out how much they are paying. You can also check with a nanny placement agency to learn how much nannies in your area are earning.

Special Wage Considerations for Hiring a Live-in Nanny

Aside from the average wages that nannies earn, there are other special wage considerations. For example, if the live-in nanny you want to hire has a bachelor’s or master’s degree, you would want to offer them a higher wage if their degree was related to childcare, education, or other such fields.

Another wage consideration is related to what types of services you expect your nanny to perform above caring for your children, such as:

  • Do you expect them to cook and prepare meals for your children?
  • Do you expect them to perform light housekeeping duties?
  • Do you expect them to be available in the evenings to provide childcare?
  • Do any of your children have special needs?
  • Do any of your children require special educational instruction?
  • Do you expect your nanny to provide overnight care when you are away for business or personal travel?
  • How many years of work experience does the live-in nanny have?

These other wage considerations will affect how much you should pay your live-in nanny. For example, if your live-in nanny has a college degree, you will want to offer, on average, $3 to $5 more per hour. For every five years of work experience, you will want to offer at least $3 more per hour.

Should You Deduct for Room and Board?

There is a limit on what you can deduct for room and board based on the laws in your area. Most of the time, the amount you can deduct per week is less than $100, so it is not worth it to deduct room and board from a live-in nanny’s earnings.

In fact, most households do not. They provide the room and board as a perk of the job because it is the family that has requested the nanny live-in, not the other way around. Essentially, the nanny is providing you a service by agreeing to live-in so that he or she is easily accessible.

Another case in point is that many states have passed or are passing specific laws which limit what employers may deduct from their live-in nannies’ salaries. Since the deduction amounts are very minimal, most people do not even want to waste the time trying to keep track of what they can and cannot deduct.

As a result, room and board, which includes the live-in nanny’s private room, utilities, and internet, are included with the job and are not deducted from the nanny’s wages and earnings. The impacts on your household expenses are so minimal with another person living in your home that you probably will not even notice any difference.

Who Should Pay for the Live-In Nanny’s Meals?

beautiful young woman using her laptop and drinking coffee at home

As an employer, it generally is a good idea to cover the costs of meals when the nanny is preparing and eating breakfast and lunch with the children. When the nanny is not working, it is generally accepted the nanny will cover the costs of her meals, just like he or she would if they were a live-out nanny.

Other Live-in Nanny Cost Factors to Consider

When you are calculating how much a live-in nanny costs, there are still more factors you need to consider.

  • Overtime Earnings – If you expect your nanny to be available outside his or her scheduled hours, you should anticipate paying overtime wages. Overtime is typically any working hours over 40 hours per week.
  • Holiday Pay – If you expect your nanny to work on major holidays, you should expect to pay them at least time and a half for the hours worked that day. If you give your nanny the day off, you should still pay them holiday pay at their normal rate.
  • Wage Increases – You will want to budget annual wage increases of a minimum of $1 per hour.
  • Bonus Pay – It is generally accepted that people with household staff, including nannies, pay their employees an annual bonus. An average bonus is normally 1-2 weeks pay.
  • Transportation Expenses – If you expect your live-in nanny to take your children on outings, social events, etc., and you do not provide them with a vehicle, you will need to reimburse them transportation expenses. You can use the government’s current standard mileage rates. For 2020, this is 57.5 cents per mile driven for work purposes.
  • Travel Expenses – If you expect your nanny to accompany your family on vacations, you will need to cover the costs of travel for your nanny.

These are just some other wage considerations you will need to account for when determining how much to pay your live-in nanny.

Dos and Don’ts of Working with a Live-in Nanny

Aside from deciding the full-time live-in nanny cost, there are several dos and don’ts when you have a live-in nanny that you need to know.

1. Don’t expect your live-in nanny to be “on-call” 24/7. Your live-in nanny should have a set working schedule just like a live-out nanny.

2. Don’t expect your live-in nanny to work on their scheduled days off. Your nanny needs time off to enjoy activities, spend time with their friends and family, etc.

3. Do remind your children to not bother the nanny when he or she is not working. It can be difficult for children to not want to spend more time with their nanny, even on their days off.

4. Do allow your nanny to come and go freely when they are not working. You should never place restrictions on when your nanny can go out or return home when they are not on the clock.

5. Do allow your nanny to invite friends over. You will want your nanny to feel welcomed and free to have friends over when they are not working.

6. Do be clear about wages, bonuses, and other perks. To avoid confusion later, write out a contract that details wages, bonus pay, holiday pay, vacation pay, insurance, taxes, etc.

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As can be seen, there is much to consider that goes above and beyond the live-in nanny cost when hiring a live-in nanny. Since there is no difference in how much you would pay a live-out and a live-in nanny, if you have an extra room and a bathroom, and you want the added benefit of having your nanny nearby, then hiring a live-in is a great choice for your household.

For more information about live-in nannies in your area and help finding the right live-in nanny for your home, contact Staffing at Tiffanie’s at 866-484-5550 today! We would be happy to help you fill other household staffing positions, such as a newborn care specialist, housekeeper, butler, personal assistant, private chef, or other staff for your household needs.