7 Factors That Influence Nanny Wages

At Morningside Nannies, one of the most frequently asked questions of both parents and nannies is “What is the going rate for nannies?”

While there is no set formula you can use to determine a fair wage for a nanny, there are several important factors that can be used to help determine a fair, competitive nanny wage. These seven factors strongly contribute to a nanny’s earning potential and can help you determine how much to pay your nanny.

1. The current market. When considering hiring a nanny or accepting work as one, it’s important to understand the current market.  Across the country nanny wages vary significantly based on geographical location. Nannies who work in major metropolitan markets like New York or Los Angeles, for example, earn more than those who work in smaller markets like Rhode Island or Milwaukee. In the Houston area, nannies generally earn from $16 to $18 per hour, however depending on the job requirements and nanny’s qualifications, the hourly rate could rise to $20 per hour particularly for competitive positions such as for part-time after school jobs.
2. Experience. When it comes to determining a nanny’s earning potential, experience is king. A well-referenced nanny with ten years of experience has a higher earning potential than a well-referenced nanny with two years of experience. The more experience and the more experience a nanny has that is specific to a family’s care needs, the more a nanny will earn.
3. Education. A nanny’s education will also impact her earning potential. A nanny who has a bachelor’s degree in early childhood education can command more per hour than a nanny who does not. Nannies with advanced education and specialized training will also earn more than nannies who do not.
4. Skillset. When considering a nanny’s earning potential her skillset will also come into play. If a nanny can teach a child a second language or teach a child how to ride a horse or play an instrument, for example, a family who is looking for a nanny who is qualified to do teach those things is prepared to pay a premium.
5. Job duties and responsibilities. Nannies are responsible for providing attentive, quality childcare and undertaking all of the tasks related to providing that care. If the parents require their nanny to take on additional household or housekeeping duties and responsibilities, they’ll be expected to pay more.
6. Living status. Nannies who live with their employers receive room and board as part of their compensation package. While live-in nannies used to earn less than their live-out counterparts, the current trend is that they are earning the equivalent or more. This is because the living arrangement typically is a benefit to the family and not the nanny.
7. Wage laws. All nannies are required to be paid at least minimum wage for each hour worked and live-out nannies are required to be paid overtime at the rate of 1.5 times their hourly base rate for all hour worked over 40 in a 7-day period. As of 2017, the minimum wage in Texas is $7.25, the same as federal minimum wage. For parents who require more than 40 hours of service from their nanny and wish to pay their nanny a set “salary” per week, the amount must be broken down into a base hourly wage and an overtime hourly wage and both wages must comply with wage and labor laws.

Parents who pay fair wages and offer a competitive salary package are better able to attract and retain qualified household staff. Parents who offer non-taxable benefits like contributions towards their nanny’s health insurance premium are likely to pay less per hour than those who do not.

When considering nanny care, it’s important for parents to remember that unlike in daycare, nannies get paid per family and not per child. While nannies typically receive a modest pay increase if a child is born during their contract, their rates are based per family, not per child.

Morningside Nannies represents qualified caregivers who have a range of wage requirements. Contact a Morningside Nannies placement specialist today at (713) 526-3989 to discuss your childcare needs and budget.

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