How Much Does a Nanny Cost?
Nanny

How Much Does a Nanny Cost?

by Trisha Heathcote

Part of the process of deciding whether or not to hire a nanny for your family includes considering the financial impact on your family. You know you need some help with childcare, and think that a nanny is the answer but what’s it going to cost you?

In this article, our Senior Payroll Manager and payroll expert over at HeartPayroll, Trisha Heathcote, breakdowns the cost of a live-out and live-in nanny in Canada including all the taxes deductions!


How much should you pay your Nanny?

The costs of hiring a nanny can widely vary depending on your area and family type. While some nannies are paid minimum wage, others have a starting pay of $20 per hour - so it is best to take into consideration all aspects of what you are looking for in a nanny before settling on a salary. Let’s break it down for you: - Nanny Rates in Canada - What are Other Factors to Consider? - Gross Pay vs Net Pay - Example Nanny Cost Breakdowns - Contact Us

Nanny Rates in Canada

The cost of a nanny varies from job to job, and nanny to nanny. Because we’re a Canada-wide company, we see quite a range of rates for nannies in Vancouver to nannies in Halifax.

Live-in vs Live-out Nanny Costs


Cost of a Live-out Nanny

In larger cities such as Toronto, Vancouver or Calgary we tend to see the range for a live-out nanny be between $14-$18 per hour, maybe even as high as $20 per hour. In rural areas nannies are often paid a lower wage rate due to the residential demographic.

Cost of a Live-in Nanny

The wage of a live-in nanny in Canada ranges between the minimum wage and $15 per hour.

In smaller communities, the rates tend to be less for both live-out and live-in nannies, but always at least the minimum wage for the province. See provincial minimum wages.

What Other Factors Should be Considered

The rate is negotiable when you are discussing your position with a potential nanny, and it is based on several factors.

  • Going rate of a nanny in your neighbourhood
  • Nanny’s experience and qualifications
  • Number of children requiring care
  • Types of duties required
  • Days and hours needed
  • Perhaps even the distance the nanny has to travel to get to your home.
  • Whether they’ll be cleaning your home (here is a more extensive guide to the cost of a housekeeper.)

Going rate in your Neighbourhood

Despite the constant minimum wage rates within a province, certain neighbourhoods will have consistently higher wage rates for a nanny. This could be due to the neighbourhood’s demographic or location. It is best to chat with many nannies in your area) and ask for their rates to get a sense of what your area is offering. Neighbourhoods with higher socioeconomic status usually charge a minimum of $16 - $18 per hour. Salaries of the nannies move in accordance with salaries of those living in the neighbourhood. Interact with many nannies to see if you should expand your search to other areas.

Nanny’s experience and qualifications

Generally, nannies with more extensive experience will be paid more than nanny just starting out. Students and teenagers will often work for minimum wage but often lack certain qualifications and experience and have less flexible hours. Furthermore, families may choose to raise their nanny’s wages over time. Some families may also favour nannies who are specifically trained in childcare or education. Nannies with specific certifications such as CPR and First Aid are also often paid better. Salaries should typically reflect the skill level and experience of the nanny. Here are some qualifications families are looking for, sorted in order of popularity:

  • First Aid (25% families requested) - First Aid is vital for the safety of children - nannies with this certification can handle incidents such as choking, burns and heavy bleeding.
  • CPR (25% families requested) - CPR classes provide nannies with the skills to respond to medical, breathing and airway emergencies and properly contact EMS.
  • Babysitter training (15% families requested) - Babysitting certifications ensure that the nanny is proficient in tasks such as how to cope with tantrums and crying as well as some basic First Aid skills.
  • Early Childhood Education (5% families requested) - ECE provides skills for understanding how the child’s mind works and how to maintain the physical and mental health of your child.

Number of Children Requiring Care

A higher number of children require more time and effort on the caretaker’s part (especially for live-in nannies) so larger families should be prepared to provide a higher wage. Age of the children should be taken into consideration as well, since babies and toddlers often require more attention. As well, not all nannies are equipped to handle children with disabilities or handicaps but those who do should be compensated for such abilities. For smaller families who do not wish to pay for a full-time nanny, a nanny to share) could be a very viable option. Only 41% of nannies are comfortable with handling twins or multiple children, so paying your nanny extra to look after more kids makes you an attractive employer. It is best to ask your nanny how many kids she is willing to look after before hiring.

Types of Duties Required

Some live-in and live-out nannies are willing to provide other services such as meal preparation, laundry or groceries, while others are not. Some nannies love taking care of pets while some are not willing to provide petcare - see here for a range of petsitters). Pay should reflect the types of duties your nannies perform. Families looking for live-in nannies should especially be very clear with duties they expect. These are important questions to ask when establishing salary. Here are some common duties families will request:

  • Meal preparation (25% families requested)
  • Laundry (25% families requested)
  • Errands (16% families requested)
  • Groceries (16% families requested)

Days and Hours Needed

Live-out nannies need to have clearly defined hours and days each week to accurately calculate pay. If they end up working longer hours than needed, families should also provide overtime pay. With live-in nannies the boundaries can get a little blurred. Will the nanny have to be on-call during all hours of the day? What type of household chores will be expected of them? When are their guaranteed “off-hours”? Keep in mind that the more time you want your nanny available, the higher your wage rate should be.

Travelling Distance for Nanny

If your nanny has a heavy commute, you might want to make your hours more flexible or your hourly wage higher. To avoid this situation, some families favour proximity the most when hiring, especially for a part-time nanny that needs to be called on short notice when the parents have a night out. 25% of employers want their nanny to have a license and 25% want them to have a vehicle - nannies who can drive are definitely an asset to the family.

Housekeeping for Nanny

Some families will sometimes seek a nanny who is willing to some light housekeeping around the house in addition to looking after their children. This extra service should be reflected in the pay. As an employer it is definitely better to establish clearly upfront if housekeeping is expected of the nanny. Asking for housekeeping later on could lead to potential frustration for your nanny.


Gross Pay vs Net Pay, CPP, EI and Other Deductions

When discussing wage with your nanny it is best to talk in terms of gross pay rather than in net pay.

Need to know the difference? See: Gross Pay vs Net Pay

The gross pay amount is closer to what’s going to come out of your pocket than the net pay amount, which is what goes into your nanny’s pocket. But did you know there are some additional costs on top of the gross pay you need to be aware of?

These are the employer contributions to CPP and EI, as well as any workers compensation costs which vary per province.

Here are some examples:

Example Nanny Cost Breakdowns


COST OF A LIVE-OUT NANNY IN ALBERTA
$15/hour | 40 hours per week | Paid every 2 weeks

Gross pay ($15/hour x 40 hours/week x 2 weeks)

$1200

Taxes deducted (federal tax, provincial tax and employee contributions to CPP and EI)

$213

Net pay (nanny's take-home pay)

$987

Source deductions (taxes deducted, as above, plus employer contributions to CPP and EI)

$297

Total cost (your out-of-pocket expenses)

$1,284

 

COST OF A LIVE-IN NANNY IN ONTARIO
$13/hour | 44 hours per week | Paid every 2 weeks

Gross pay ($13/hour x 44 hours/week x 2 weeks)

$1,144

Taxes deducted (federal tax, provincial tax and employee contributions to CPP and EI)

$206

Room and board deducted, if applicable

$170.50

Net pay (nanny's take-home pay)

$767.50

Source deductions (taxes deducted, as above, plus employer contributions to CPP and EI)

$286
Total cost (your out-of-pocket expenses) $1,053.50

Need some help calculating costs for a live-in or live-out nanny? We can help!

  • Contact our payroll department at 1-877-416-5452 or email: trisha@heartpayroll.com
  • Don’t have time to handle payroll yourself? Let Trisha and her team at HeartPayroll take care of everything: HeartPayroll
  • Need help deciding whether a live-out or live-in nanny is the right choice for you? Trisha highlight’s the key differences here: How to Decide on a Live-out or Live-in Nanny

CanadianNanny.ca Nanny Payroll & Tax service is powered by HeartPayroll


Let Us Be Your Guide to Finding & Hiring a Nanny

Choosing a nanny is an important and difficult decision we have many resources to help guide you through the process of finding, interviewing, hiring, keeping and paying great nannies. We even have advice for when and how to dismiss your nanny if necessary.

For more information check out the Nanny Hiring and Nanny FAO sections of our blog as well as our Nanny Hiring Guide.

Contact Us

Although we may be a self-serve nanny service, we are still very much devoted to helping families and caregivers succeed in their search for a match through our site. Our customer support team is always here and happy to offer any advice to our potential and existing customers.

More Helpful Resources


CanadianNanny.ca is Canada’s largest and most trusted online service for finding nannies and babysitters. We have been recognized by Today’s Parent, CanadaAM, the Globe & Mail, Reader’s Digest, Canadian Living Magazine, and many reputable parenting websites and publications across Canada.

Need a Nanny?

Need a Nanny Job?

More posts like this: - Nanny Tax & Payroll


Canadian Nanny Payroll and Tax Service powered by Heartpayroll