Nanny Compensation, Salary & Benefits

by Rick Suttle

Busy parents hire nannies to care for their children while they work or run home businesses. Nannies prepare play and educational activities for young children, assist school-age kids with homework, prepare meals and perform general housekeeping duties, such as vacuuming and doing childrens' laundry. They also drive kids to school and shop for groceries. If you want to become a nanny, you usually need experience watching children and a valid driver's license. You must also be honest and trustworthy. In return, you can expect to earn an average salary above $20,000 if you work full-time.

Salary and Benefits

Nannies can work part- or- full-time. Some live with families while others commute; their incomes can vary according to their individual working statuses. The U.S. Bureau of Labor Statistics includes salaries for nannies under childcare workers. In May 2012, they earned $21,310 per year, or $10.25 per hour. In 2013, the job website Indeed reported an annual salary of $23,000 for nannies. And according to the International Nanny Association, you would earn an average of $652 per week as a live-in nanny or $705 as a live-out nanny, based on its 2011 survey. These figures equate to $33,904 and $36,660 per year annually, but the survey sample size is relatively limited at 482 respondents. Benefits for nannies usually include health insurance and two or more years of paid vacation. Those who live-in may also receive free housing and meals.

Salary by State or District

Childcare workers, including nannies, earned the highest annual salaries of $30,490 in the District of Columbia as of May 2012, according to the BLS. They also earned considerably high salaries in Massachusetts and California at $25,500 and $24,460 per year, respectively. If you worked in Pennsylvania or Florida, your salary would be closer to the industry average -- $20,550 or $20,260, respectively. And you would only make $18,410 annually in Nebraska.

Contributing Factors

The family for which you work is going to dictate your salary. You are likelier to earn more working for wealthier folks, such as movie stars, singers, sports professionals or business executives. Experience may also affect your annual earnings, as you may qualify for higher-paying jobs if you have significant experience caring for children. Employers may also pay you more in areas where living costs are higher: New York, California and Massachusetts.

Job Outlook

Jobs for childcare workers, including nannies, are expected to increase 20 percent in the next decade, based on BLS data. This rate of growth is faster than the average growth-rate of 14 percent for all jobs. Demand for nannies will continue to increase as more people require childcare. You will likely find more job opportunities as a nanny in areas experiencing high population growth.

Photo Credits

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