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How to Set Your Nanny Rates around New York City

NYC is one of the most vibrant cities in the world, with all kinds of cultures, professionals, and lifestyles coming together . This makes it both easy and challenging to balance your earnings that will be enough to sustain you in your nanny career while living in this city. Finding that balance is one of the most frequent questions we receive as a New York City nanny agency.

First, you need to understand that there is no fixed rate for all nannies in the area. The hourly nanny rate people expect to be paid is based according to social and their economic concerns. Right now, many nannies are worried about rising inflation and how it will affect everything from the cost of a gallon of milk to a trip on the MTA subway.

Secondly, there is a public perception that having a nanny is expensive. And some view it as a luxury when in reality, it is a convenience that offers peace of mind knowing your child is receiving the one-on-one attention in your home while you are working or just busy with life obligations.

Setting your nanny rates will depend on how you view your time and how you will be spending it with your potential new family. Are you anticipating being with this family for years to come? Have you discussed rate increases according to the cost of living over those years? You may wish to grow with a family, but you also need to pay rent and afford to build your career. So let’s start by defining a few things.

An NYC Nanny vs. Babysitter

Nannies and babysitters both provide some form of childcare, but there are some key differences that result in different pay scales.

A babysitter is a short-term, as-needed basis that watches over the safety of a child while the parents are out for a date night in the city or when there is a big event, and an extra pair of eyes is needed.

A babysitter may cost you anywhere from $15-$35 per hour, depending on whether it is a working professional or your friend's daughter that needs a side hustle while going through high school or in college.

A nanny is much different, nannies are childcare professionals with educational backgrounds, specific childcare training in addressing the needs of a child physically, socially, emotionally, and behaviorally on a full-time basis. just released that the average hourly rate of a nanny in New York is at least $21.76 based on 461 salaries reported, July 01, 2022. But the hourly keeps changing all the time depending on whom you ask. But based on my experience as a current NYC nanny it will likely be more in the $20-$45 per hour range and some do get paid higher than $45 per hour. These are based mostly from feedbacks that I received from the working nannies in the nanny community, both in person and in the Online groups.

Getting into the Specifics of Nanny Care

If you are a parent looking to hire a nanny around NYC, keep in mind that most of them have specialized skills that receive a higher pay rate. Domestic employees are non-exempt employees, meaning they receive an hourly rate and not a salary.

This is how we break it down. Lets start with the nanny's paid childcare experience

  • 1-4 years of experience = $20-$25/hour

  • 5-10 years of experience = $26-$30/hour

  • 11+ years of experience = $31-$45/hour

Then consider adding this

  • Years of paid childcare experience

  • Childcare education/credentials

  • Languages

  • Personal skills (cooking, driving, swimming, organizing)

  • Number of children in care

  • Unique job description

  • Ability to Travel both local and abroad

  • Benefits like health Care stipend, vacation time, childcare training stipend , retirement fund, etc.

You should budget roughly $20-$45 per hour, (this does not include payroll taxes & insurances) and remember that overtime rates in New York city for a live -out nanny start at 40 hrs and for a live -in is after 44hrs. That is multiplied by 1.5 times their usual hourly rate. That means someone making $20 an hour at 40 hours per week would earn $35 per hour beyond that original 40.

Where to Begin

Everything begins with a conversation. For example, when we interview a nanny candidate for our New York City nanny agency, we ask about their childcare background and education. That leads to their paid nanny experience and then the references from families they have worked for in the past. Then we can only set an appropriate hourly rate and also considering what we know the market is doing in the local area.

And make sure that everybody understand each other expectations while working in the household. Write everything down in the form of a Nanny/Parent Agreement before starting any nanny work with your new family to prevent any miscommunication and minimize misunderstanding in the future. Goodluck!

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