The Fair Work minimums

The first factor to consider for Melbourne nanny cost is the minimum wage your nanny employee is entitled to be paid. Nanny employees in Australia are covered under the Miscellaneous Award (Level 2, except for the first 3 months in a role). The minimum rates are not industry standards, but are the legal bare minimums.

By checking the Miscellaneous Award on the Fair Work website you can view the current minimum hourly rates (which vary depending on whether the nanny is a casual employee (no paid leave) or permanent employee (paid leave entitlements). The Award will also outline other conditions you need to meet or exceed.

The detailed Pay Guide specifies the higher rates you need to factor into your minimum Melbourne nanny cost for evenings, weekends, public holidays, and hours over 38 per week.

The reality of the Melbourne nanny cost in the current market

The Miscellaneous Award isn’t specific to nannies and doesn’t take the role and responsibilities of a nanny into account. It’s important to understand the market range to determine your Melbourne nanny cost.

Your average nanny just starting out
For a nanny with less than 2 years of experience you will likely be looking at a casual hourly wage between $32-35 per hour or a permanent hourly wage between $25-30 per hour.

A nanny with some experience and/or relevant education behind them
For a nanny with 2-5 years of experience and/or an early childhood qualification (or similar) you should consider a casual hourly wage between $35-40 per hour or a permanent hourly wage between $32-38 per hour.

A ‘career nanny’ with significant experience
For a nanny with 5-10+ years of experience working as a nanny or in a related field, you will likely need to factor a casual hourly wage between $40-45+ per hour or a permanent hourly wage between $37-45+ per hour into your Melbourne nanny cost calculations.

Additional expenses to remember when calculating your total Melbourne nanny cost

Super – Your nanny may be legally entitled to Super and, even if they are not, it is common and reasonable for them to be paid Super on top of their hourly rate.

Insurance – It is a requirement for you to have a Workers Compensation Insurance Policy to cover domestic employees in your home. The cost of this will depend on the salary you are paying.

Mileage and other reimbursements – The Miscellaneous Award outlines allowances that are required to be paid and will contribute to your Melbourne nanny cost. One of these is mileage if the nanny is driving their own car on the job. You can view the current vehicle allowance rate per kilometre under Wages and Allowances in the Award. 

Payroll costs – Whether it’s the cost of time if you work out how to do it yourself, or the fees charged by a payroll company like NannyPay, this is an expense that needs to be factored in.

The bottom line

Employing a nanny is generally a bigger expense than using other forms of childcare (but a nanny can provide wonderful value, of course!). But your Melbourne nanny cost can vary depending on your needs and the nanny you choose to employ.

As always, it’s important to consider your budget but also the value that a nanny will bring to your lives. Someone caring for your children in the home is someone you want to show your appreciation to – both by treating them well and paying them appropriately!