This is an amalgamation of several posts I originally authored called What is the Average Nanny Salary in NYC – the Nanny Agency NYC Families have Trusted since 2007 Provides the 2017 Survey Results. Note, the original posts can be found here:
NYC families often ask us “how much does a nanny make?” While we offer them the ranges that we see in our practice, it’s rare that we find a statistically significant survey of NYC-based families on nanny pay. So when we came across this one, we thought it would be worthwhile to share the results.
While the results contained in this survey are primarily applicable to families living in the NYC borough of Brooklyn, this data represents the best third-party evidence of nanny pay in the tri-state area that we have seen. At the same time, a grain of salt should be used when interpreting these results, since our own research (along with research from our nanny agency peers who service NYC families) suggests that NYC nanny salaries in Manhattan start at closer to $20 for highly-qualified, career nannies.
Some of the factors that we see (and which are highlighted in the survey) that cause the nannies with whom higher-end agencies work to command higher-than-average salaries are things like: the ability to speak a second language, multiple years of experience, experience caring for multiple children at once, infant experience/certifications, college educations and/or specialized training, and experience with twins, multiples, and special needs.
So How Much do Nannies Make in NYC?
What the Survey Said About Nanny Job Descriptions and Nanny Contracts
Before we get to the actual survey results, one thing that stuck out to us was that only 55% of the survey respondents have a formal work agreement in place. In our experience, having a formal work agreement is one of the key success factors to a long-term placement. In the best nanny work agreements, we see families complete lots of pertinent information that you would likely want to have in their own work agreement at their corporate jobs. These are things like:
- Days and hours that the nanny is expected to work
- The nanny’s job duties related to the children
- The nanny’s job duties related to the home
- Vacation, sick and personal day policies
- Snow day policies
- The nanny’s salary
- Any adjustments to the typical nanny’s salary such as overtime, travel pay, and weekend pay
What The Survey Says About Nanny Payroll Taxes
Another thing that stuck out to me was the ratio of families that are paying their nannies off the books. The survey indicated that:
- 60% of employers pay their nanny completely off the books
- 13% of employers pay their nanny completely on the books
Note: it is the law to pay nannies completely on the books. We advise all of our clients of this in our kickoff communications and graciously make recommendations to nanny payroll tax providers as necessary. We even offer access to a nanny tax calculator which allows families to see what their nanny will actually take home given a fixed gross pay.
Here were some other nanny tax related stats from the survey:
- 12% of employers pay part of the nanny’s salary on the books
- 15% of employers did not answer this question
Of the families who follow the law and pay their nannies on the books:
- 2/3 use a payroll provider like HomeWork solutions or someone similar
- 21% handle the accounting themselves
- 13% use packaged software like Quickbooks
Interested in Nanny Pay Raises and Bonuses? Here is What the Survey Said:
- 74% of nannies working for their employer for a year or more have received a raise.
- Of the nannies who got a raise, 54% said they got a $1/hour raise, 32% received more than $1, and 14% cited other variations. In our experience, the amount of the raise is proportionally related to the starting salary. Offering a $1/hour raise on a $30/hour NYC nanny salary is vastly different than providing a $1/hour raise on a $20/hour NYC nanny salary.
- 95% of employers give a bonus if the nanny has worked for 12 months or more. According to the survey, 73% of respondents gave a bonus equivalent to 1 week’s salary, while 20% paid 2 week’s salary. Our experience with this is all over the board…while many NYC nanny agency families pay bonuses, many consider them to be “performance-based.”
The survey also goes into What Benefits to Families Provide their Nannies.
According to the survey:
- 14 days is the average agreed upon number of days off. Consistent with the survey, our clients typically offer their nannies two weeks of paid vacation – one of the family’s choosing and one of the nanny’s choosing.
- In addition to paid vacation, our clients often provide the nannies with paid time off during the national holidays.
- According to the survey, 73% of respondents pay their nanny’s salary/regular hours if they are away. Only 12% do not pay their nanny while they are on vacation. In our experience, paying the nanny while you are away on vacation is considered a “best practice.”
The Survey Also Gets Into Employer Work Policies
According to the survey:
- 86% of respondents give their nanny a full day’s pay if she is dismissed early.
- 76% of employers have an “open kitchen” policy with their nanny.
- 65% of employers pay their nanny’s cab fare home if dismissed at a “late hour.”
- 55% of employers pay for their nanny’s metrocard or offer a similar travel subsidy.
- 52% of employers give their nannies access to the family’s home computer/internet access
- 48% of employers give their nanny an allowance to spend as they wish with the children (range of $15-30 per week)
As an aside, this link to the New York Domestic Workers Bill of Rights might be of interest as you consider all the details related to hiring of your next nanny. http://on.ny.gov/2uI0q55
And here is some information on Workers Compensation and Disability Insurance. http://on.ny.gov/2uhnMOv
This link to the New York Unemployment Eligibility might be of interest too. http://bit.ly/2gPQ3H7
Here is a link to the Wage Theft Protection Act. http://on.ny.gov/2tmhSIK