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?

With many households having two working parents, there’s never been more of a need for childcare. Nannies are a great option if the grandparents are not available and there no open daycare slots in your neighbourhood.

Nannies are experienced professionals who can give your child high-quality and personal care that really help nurture their growth and well-being. Nanny services are great because you can rest easy at work knowing that your child is in good hands within your own home.

If you’re starting the caregiver search and are wondering how much does a nanny cost, read on! We will give you a breakdown on the most important factors that affect nanny salary.

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.

There are many different ways a nanny can be paid - per hour, per week, etc. For consistency, all the figures in this guide will be in hourly figures.

Let’s break it down for you:

Average Nanny Rates in 2017

In 2017, the average nanny charged $17.09 per hour, with anything in the range $15 to $19 being common. On the higher-end, nannies charged $22.35 per hour while nannies on the lower-end earned $12.72 per hour.

The Nanny Pay Rates in Canada 2017

How much do nannies cost? It depends on your location! In Canada the average wage rates can vary between cities and even within neighbourhoods. Ask friends and people in your area what they have paid their nannies in the past to use as a rough benchmark. Always in keep in mind the minimum wage in your province when paying your nanny!

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.

City Average Nanny Pay (per hour)
Toronto, Ontario $15.17
Montreal, Quebec $13.39
Calgary, Alberta $14.41
Ottawa, Ontario $13.99
Edmonton, Alberta $14.39
Mississauga, Ontario $14.80
Winnipeg, Manitoba $13.67
Vancouver, British Columbia $15.68
Brampton, Ontario $15.04
Hamilton, Ontario $14.88

Nanny rates can vary a lot throughout Canada. In Vancouver the average hourly rate is $15.68 whereas in Montreal it is only $13.39.

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.

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.

Age Group

Not every nanny is comfortable with taking care of newborns while others don’t particularly like looking after pre-teens. Here’s a detailed chart on different groups and the percentage of nannies willing to look after this age. It seems as though most nannies prefer to take care of younger children, and those who are willing to take care of preteens charge more.

Age Group Percent of nannies willing to take care of this group Average hourly wage
Newborns 50% $15.52
Toddler 29% $16.32
Primary School 77% $15.20
Early School 25% $17.08
Preteens/Teenager 10% $18.11

Availability

Nannies all have very different schedules. Some choose to make nannying their full-time job and work 9 to 5, Monday to Friday while others work on a part-time basis.

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.

Availability Percent of nannies with this availability Average hourly pay
Full Time 57% $15.51
Live in 18% $15.32
Live out 83% $15.43
Long term 67% $15.67
Occasional 27% $15.45
Part time 61% $15.19
Short term 35% $15.56
Summer only 24% $15.29

Household Tasks

Since kids do not require full attention 24/7 (even newborns have nap-time) it’s not uncommon for families to ask their nannies to perform some tasks on the side in addition to childcare. The most common ones are light housekeeping and meal preparation.

Keep in mind that some nannies believe that they are strictly nannies and not housekeepers. Asking your nanny to do a lot of extra tasks can lead to increased wages. If you want your nannies to run errands or get groceries (which case you should also require them to have a license and vehicle) it looks like you should expect to pay a good deal more.

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.

Household Task Percent of nannies who provide this household task Average hourly rate
Errands 39% $16.27
Groceries 41% $16.26
Laundry 60% $15.64
Light housekeeping 78% $15.38
Meal Preparation 62% $16.00

Services

Here are some common services nannies perform related to childcare. Keep in mind that not all of these can be done by every nanny! For example some nannies are not comfortable with pets and some do not know how to swim.

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.

Homework Supervision

  • 68% of nannies offer this service and charge an average of $15.42 per hour

Pet Care

  • 78% of nannies offer this service and charge an average of $15.02 per hour

Gardening

  • 21% of nannies offer this service and charge an average of $15.80 per hour

Swimming Supervision

  • 44% of nannies offer this service and charge an average of $15.95 per hour

Years of Experience and Nanny Pay

Years of Work 0 - 5 6 - 10 11 - 15 15+
Hourly Rate Charged $14.74 $16.03 $17.80 $16.03

As expected, more years of experience leads to higher pay. A more experienced nanny can provide a higher-quality level of care for your child - and they may know what to do in certain emergency situations that a newer nanny does not.

A note as well, as a nanny works for a family for an extended period of time, it is common for them to receive a raise.

Language

In a world full of diversity, it definitely helps to be multilingual. Many families want their children to speak two languages at home so having a bilingual nanny is very helpful. Nannies who can speak Arabic, French or Spanish in addition to English can expect to make $16 to $17 per hour right off the bat. Not everyone is skilled in multiple languages so definitely put it down on your resume if you are!

Special Needs Experience

Not all nannies have the experience of working with children with special needs. Nannies who have taken care of kids with diabetes, epilepsy or down syndrome usually earn a salary of $15 to $16 per hour.

Nanny Training

Some training like CPR and First Aid takes a few hours or days but more specialized education like an ECE or nursing background can take years to obtain and is also very costly! Nannies with more advanced training often charge more.

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:

CPR

  • 73% of nannies have CPR training and charge an average of $15.33 per hour
  • 25% of families request CPR training
  • First Aid is vital for the safety of children - nannies with this certification can handle incidents such as choking, burns and heavy bleeding

First Aid

  • 58% of nannies have first aid training and charge an average of $15.67 per hour

Early Childhood Educator

  • 14% of nannies have an ECE background and charge an average of $17.13 per hour
  • 5% of families request an ECE background
  • ECE provides skills for understanding how the child’s mind works and how to maintain the physical and mental health of your child

Foodsafe

  • 15% of nannies have taken a Foodsafe course and charge an average of $16.28 per hour

Midwife

  • 1% of nannies have midwife training and charge an average of $18.00 per hour

Personal Support Worker (PSW) Training

  • 5% of nannies have PSW training and charge an average of $17.88 per hour
  • If you also have an elderly relative you want your nanny to look after from time to time, PSW training is very helpful

Registered Nurse

  • 2% of nannies are registered nurses and charge an average of $17.40 per hour

Work Eligibility and Transportation

  • 92% of nannies are eligible to work in Canada
  • 49% of nannies have a recent criminal background check
  • 7% of nannies require sponsorship
  • 32% of nannies have their own vehicle and 33% of nannies have their own license

Other Factors to Consider

Some families opt to pay for their nannies transportation costs (like gas or a metropass) if they live in a remote location or live near a subway line. It’s not required but nannies appreciate this touch.

Overtime is paid after 40 hours so if you or your partner are running late home, make sure your nanny is compensated for their extra time.

A higher number of children require more time and effort on the caretaker’s part 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. 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.

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.


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

How to Pay Your Nanny

If your family is unsure about paying for a full-time nanny, setting up a nanny share can be very helpful financially! Finding the right nanny and family to share with can take some time but once you find your perfect matches the arrangement can be a win-win situation!

Handling payroll and taxes for your nanny can be very tedious and time-consuming. With HeartPayroll our payroll experts will take care of everything for you so you can spend more time with your loved ones.

Benefits of Daycare compared to a Nanny

Some daycares (especially in large cities) are notoriously difficult to get into but if you do find a daycare you like it does come with benefits a nanny cannot provide. Your child has the benefit of being able to socially interact with a lot of children their own age. As well, while daycare fees are steep, sometimes they are less expensive than a full-time nanny.

Conclusion

Finding the right nanny for your family and figuring out how much to pay a nanny can be difficult but you can rest easy that you’re leaving your children in the best hands when you’re gone.

Hopefully this guide gave you some food for thought about what to pay your nanny. Good luck on your search!

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.

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