Budgets and Compensation Packages for Nannies

When you first start the search for the perfect nanny for your family, most of you have sat down to do a budget up, right? You would be surprised at how many don’t!

The first thing you should do when making the decision about childcare for your family is sit down and decide what you can afford. Many people do not realize that there are many different things to consider. If you hire part time it is typically an hourly rate but if you hire full time, you have the choice of salary or hourly. It doesn’t end there….

Part time vs Full time:

When you hire on a part time basis you are usually going to paying a higher rate. A nanny would be working less hours for you but you should still be paying them for time not needed.

Coming up with a Budget:

There are things involved other than just paying someone x amount of dollars. You SHOULD be paying someone as an employee as per the CRA which means remitting taxes on their behalf as well as paying an employer portion. Depending on what province you live in, this will range from anywhere from 7 – 12% over and above your nanny’s gross wage. This would also include having appropriate in home insurance with Worker’s Compensation.

Other things to Consider:

If a nanny is looking for a higher wage than you are willing or able to pay, consider offering a competitive package that includes more vacation (the standard is 2 weeks paid per year as well as any other time not needed), metro/transit passes, medical benefits and paid sick time.

Do you want your nanny to be paid biweekly, bimonthly or even monthly? Make sure you know the rules for your province before making that decision. Carefully look into what the overtime rules are as well.

Bottom line is that you should carefully consider what you can afford before hiring a nanny, so that you are not stuck making changes after someone has started.

 

Lisa Bruce is a mother first and foremost to her 2 wonderful kids, wife, Placement Manager and owner of the newest Nannies on Call branch in the Okanagan.