Maybe you’ve worked out how to pay your nanny (hopefully the right way – with NannyPay‘s help!) but how do you decide how much to pay your nanny? There are two important things to be aware of when making that decision – the minimum wages required by law, and the industry standards in your area.
Australian nanny employees are covered under the Miscellaneous Award. Though the Miscellaneous Award is not specific to the nanny industry, under the Award conditions employees fall under Level 1 of the pay guide for the first 3 months and Level 2 after 3 months in a role. For simplicity’s sake, we’ll talk about the specific Level 2 ordinary hours (between 7am-7pm on Mondays-Fridays) rates as the minimum rate you can pay your nanny as your employee.
On July 1st 2022, minimum wages increased. For Full-Time or Part-Time nanny employees, who receive paid time off, the minimum hourly wage is now $22.77 per hour for ordinary work hours. The minimum wage for a Casually Employed nanny in Australia is now $28.46 per hour. Nannies may also be entitled to higher wages if they work outside of these hours or overtime. The Pay Guide (which you can download here) specifies the higher rates you need to pay your nanny for evenings, weekends, public holidays, and hours over 38 per week.
Nanny employees may also be entitled to Super (and even if it’s not a legal requirement due to the number of hours they work, we highly recommend you pay your nanny Super anyway). The Super contribution requirement has gone up this year to 10.5% of employee’s wage.
TIP: For any nannies who are working under an ABN, $28.46 + 10.5% Superannuation is $31.45, so maybe consider this to be your new minimum wage to ’employ yourself’.
The Miscellaneous Award has a lot of additional information and requirements, so it’s important as a parent employing a nanny to read and understand what conditions you need to meet or exceed. These are not only the rates you need to pay your nanny, but include things like accommodations for breaks and leave.
At times these differ from other ATO requirements. For example, the vehicle allowance under the Miscellaneous Award (for nanny employees who drive their own car on the job) is now 91 cents per kilometre (while the ATO cents per kilometre rate is now 78 cents).
Local industry standards
With all those legally-required minimum figures out of the way, let’s circle back to the other important thing to consider – industry standards. Most experienced and/or qualified nannies will expect higher than minimum wage so when you’re deciding what to pay your nanny, or even what to initially advertise, it’s a good idea to research rates in your area.
To get a sense of what to pay your nanny, look into what local agencies are advertising and check out local Facebook groups. You will likely see a range of rates advertised and might even be able to ask people in the industry what the going rates are. Remember that the Nanny Wage Calculator from Nanny of Oz is also available as a helpful resource.
Nannies are in high demand in most major cities at the moment, and offering a competitive wage can help you to attract quality candidates in the current market. In cities like Melbourne and Sydney, hourly rates tend to be between $30-40 per hour this year – depending on the type of employment. Other factors that influence what you should expect to pay your nanny in order to secure a great one are: the hours you require, the number/ages of children, and the tasks you require your nanny to do. The nanny’s experience, education, and expectations will also contribute to what they will expect to be paid.
Still not sure what you pay your nanny?
We’re happy to chat to you about your current or future nanny’s role and what you intend to pay them, and can provide you with resources to help you make the most appropriate offer for the situation. Just reach out!