Let’s Talk Nanny Pay: Why Transparency is Your Best Policy

Jun 12, 2025 | GTM Blog, Household Employee Management

Hiring a nanny is a big deal. You’re entrusting someone with the care of your child. And just like any professional relationship, clear communication, especially around compensation, is key to a successful and lasting partnership.

In today’s evolving job market, “pay transparency” is a hot topic, and for good reason. But what does it mean when you’re looking for a nanny, and is it even required?

Is Pay Transparency Mandatory When Hiring a Nanny?

This is where it gets a little nuanced. Generally, for private household employees, such as nannies, the same strict pay transparency laws in job postings that apply to traditional businesses don’t always directly apply in every state or city. There isn’t a universal federal law mandating salary disclosure for private individuals hiring domestic help.

However, a growing number of states and localities are enacting pay transparency laws that could impact you depending on where you live. These laws often require employers to disclose salary ranges in job postings. While many are aimed at larger businesses, some might have broad enough language to cover any employer.

It’s always a good idea to check your local and state labor laws or consult with GTM’s household employment experts to ensure compliance.

Why It’s a Really Good Idea (Even if Not Mandatory)

Even if your local laws don’t explicitly demand it, practicing pay transparency when hiring a nanny is a genuinely smart move for several reasons:

Attracts the Right Candidates

Top-tier nannies are professionals. They know their worth and are looking for positions that align with their salary expectations. When you include a pay range in your job posting, you immediately signal that you’re serious and respectful of their time. This helps you filter out candidates who are outside your budget and attracts those who are genuinely interested and qualified for the pay you’re offering.

Builds Trust

Applying for a job without knowing if the pay will even cover your bills is frustrating and can feel like a waste of time. By being upfront about compensation, you establish a foundation of trust and respect. This sets a positive tone for your entire working relationship.

Reduces Negotiation Headaches

Although some negotiation may still be required, having a clear range from the start significantly streamlines the process. Both parties enter discussions with realistic expectations, minimizing awkward conversations and potential disagreements later on.

Promotes Fairness and Equity

Pay transparency helps promote more equitable pay practices. When everyone is aware of the expected range, it’s less likely for unfair discrepancies to emerge, resulting in a more just hiring process.

Saves Time

Think of all the interviews you might conduct with candidates who, after an hour of conversation, reveal their salary expectations are much higher than your budget. Pay transparency eliminates this wasted effort, allowing you to focus on truly viable candidates.

Professionalism

Disclosing a pay range simply demonstrates professionalism. It shows that you’ve done your research, understand the market value for nanny services, and are treating the hiring process with the seriousness it deserves.

What to Include and How to Phrase It

When you choose to be transparent about your nanny’s pay, there are several key elements to include. First, offer a realistic hourly pay range. It’s important to conduct thorough research, looking into average nanny salaries in your specific area, taking into account factors such as the nanny’s experience, the number of children they’ll care for, and the specific duties required.

Next, clearly outline any additional benefits. These are valuable components of a compensation package and should be mentioned. Examples include a health insurance stipend, paid time off (PTO), holidays, sick days, mileage reimbursement, and opportunities for professional development.

Also, mention your willingness to discuss compensation further. Even with a provided range, you can add a phrase such as, “Compensation will be commensurate with experience and qualifications,” or “We are open to discussing compensation based on the candidate’s unique skills and value.”

By being upfront about pay and highlighting the full value of your offer, you’re not just finding a nanny; you’re building a strong, respectful, and long-lasting relationship with a vital member of your family’s support system. In the long run, transparency always pays off. To discuss more about pay transparency and finding the right candidate for your family, call us today at (800) 929-9213 or book a complimentary, no-obligation consultation.