{"id":18928,"date":"2026-01-02T12:36:28","date_gmt":"2026-01-02T17:36:28","guid":{"rendered":"https:\/\/gtm.com\/household\/?p=18928"},"modified":"2026-01-02T12:13:20","modified_gmt":"2026-01-02T17:13:20","slug":"negotiating-nanny-pay","status":"publish","type":"post","link":"https:\/\/gtm.com\/household\/negotiating-nanny-pay\/","title":{"rendered":"How to Negotiate Your Nanny’s Pay and Still Get the Best Person for the Job"},"content":{"rendered":"

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One of the most complex aspects of hiring a nanny is negotiating a pay rate<\/a>. You want the best caregiver you can find at a reasonable rate. And that shouldn\u2019t be an issue if you approach this negotiation as a conversation, not a conflict. It\u2019s not a matter of one side winning or losing. Seek common ground, understand each other\u2019s needs, and develop a shared solution. Both sides are satisfied, which is an excellent start to your professional relationship!<\/p>\n

Your nanny will work in your home and care for your children. You’ll want them to feel valued and respected, while remaining financially responsible.<\/p>\n

With proper preparation and the right mindset, negotiating pay with your nanny will be just like a conversation. Here are some tips on how to negotiate your nanny\u2019s pay<\/a>.<\/p>\n

Understand your local market<\/h2>\n

The going rates for nannies vary by city. Even moving from a metropolitan area to its suburbs can result in a significant change in caregivers’ pay. Knowing what nannies get paid in your city or town is essential. The\u00a0International Nanny Association (INA)\u2019s Nanny Salary and Benefits Survey is a good resource<\/a><\/span>. If you\u2019re working with a placement agency, they will help you set a reasonable pay rate for the nanny you want. You can check online job sites to see what rates families seeking help are offering. However, the wages offered on these sites are often far too low to attract a high-quality, professional caregiver.<\/p>\n

Here are some other factors to consider when budgeting for a nanny<\/a>.<\/p>\n

Use a nanny tax calculator<\/h2>\n

You\u2019ll have other expenses on top of your nanny\u2019s pay, including payroll and unemployment taxes.\u00a0A Dependent Care Flexible Spending Account<\/a> through your employer, along with the Child and Dependent Care Tax Credit, can help offset these expenses<\/span>.\u00a0Using a\u00a0nanny tax calculator gives<\/a> you<\/span>\u00a0a complete picture of your financial obligation. That way, your pay rate<\/a> is one you can afford, and you know the most you can offer before turning away a candidate.<\/p>\n

Always treat your candidates with respect<\/h2>\n

A high-quality nanny will not be interested in a job with a family that doesn\u2019t respect them. That includes pay negotiations. There is no need to be condescending, demeaning, or confrontational. Treat your candidates as the professionals they are. You\u2019re starting a relationship with someone who will work in your home and care for your children. It\u2019s an important hire, and you want the best candidates for your position.<\/p>\n

Negotiate an hourly gross pay rate<\/h2>\n

Nannies are required by law to be paid an hourly rate and not a flat salary. You could offer guaranteed hours, which is like a salary<\/a>, because your nanny can rely on a steady weekly pay. Many nannies prefer guaranteed hours because they help them budget and pay their bills.<\/p>\n

Gross pay is your nanny\u2019s hourly rate before taxes and other deductions. Your nanny can also use a nanny tax calculator<\/a> to enter their personal tax information and determine their net or \u201ctake-home\u201d pay.<\/p>\n

Remember overtime is time and a half<\/h2>\n

Nannies are also required by law to be paid at least time-and-a-half for hours worked over 40 in a workweek. If you\u2019re offering your candidate $20\/hour for 50 hours\/week, that\u2019s $20\/hour for the first 40 hours and $30\/hour for the additional 10 hours. Nannies may prefer a job that offers overtime, as it allows them to increase their pay.<\/p>\n

Live-in nannies typically do not need to be paid overtime, but state laws vary. For example, in New York, live-in household employees receive overtime for hours worked in excess of 44 in a workweek.<\/p>\n

Pay \u201con the books\u201d<\/h2>\n

There\u2019s too much financial and legal risk involved for your family to take the chance and pay your nanny \u201cunder the table.”<\/a> So, paying illegally should be a non-starter. The top nannies understand this and will only take jobs that pay \u201con the books.\u201d They want to be treated like professionals and\u00a0to enjoy the benefits of legal pay,<\/a> such as an employment history and verified income, when applying<\/span>\u00a0for credit, a loan, or a mortgage.<\/p>\n

Offer benefits<\/h2>\n

Pay rate<\/a> is not the only consideration for a nanny when deciding whether to take a position. You could consider\u00a0offering\u00a0health benefits<\/a><\/span>\u00a0to help your nanny reduce their health insurance costs. Many plans are funded pre-tax, so you\u2019re both saving money by reducing your nanny\u2019s taxable income.<\/p>\n

While some paid time off is standard, you could also be generous with vacation and sick days. That could be attractive to a nanny, even if your pay rate is slightly low.<\/p>\n

Know employment laws in your state<\/h2>\n

Some states are making it illegal for employers to ask about a candidate\u2019s salary history. Make sure you understand the applicable labor laws in your state. Remember, as a family hiring someone to work in your home, you are considered an employer, and these labor laws may apply to you.<\/p>\n

Agree to an evaluation period<\/h2>\n

Let\u2019s say you have an applicant you are fond of, and they would like to work for you. But you\u2019re a little bit apart on the rate of pay. You could ask your candidate to work for a few months at the lower rate, then revisit their wages at the end of the \u201cintroductory\u201d or \u201ctrial\u201d period. You would need to put this in writing and, when the time comes, determine whether your nanny is worth paying more to keep them on board or end the relationship and restart your job search.<\/p>\n

Make a fair offer<\/h2>\n

It may be tempting to lowball your candidate and then plan to negotiate that rate. However, offering a low pay rate (without benefits to offset it) could be a deterrent to a high-quality, professional nanny. They may say \u201cno\u201d and move on to a family that respects their work.<\/p>\n

Do your research<\/a> and make a reasonable offer. You can negotiate higher, but always stay within your budget. Offering a fair pay and benefits package will also make your candidate feel validated. If they believe you value their work, it gives them even more incentive to do a good job. You\u2019re also building trust in your employee, and that doesn\u2019t come with a price tag.<\/p>\n

Put it in writing<\/h2>\n

Once you\u2019ve agreed to a rate of pay and benefits package, make sure it\u2019s documented in your work agreement<\/a>. Your employee\u2019s hourly rate, overtime rate, paid time off, and other wage and benefit details should be clearly stated so there\u2019s no confusion come payday.<\/p>\n

Hiring a nanny?<\/h2>\n

Download Your Guide to Hiring a Nanny. In this guide, we outline the steps for hiring a nanny the right way and maintaining a strong relationship with your employee.
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