Like all employees the hourly cost of a nanny is driven by market forces that is, what rate the nannies can demand based on the amount of work v’s the number of nannies available. So the pay hour rate of a nanny can vary considerably based on a nanny working in Sydney’s north shore compared to a job based in Newcastle. Other factors to consider when determining a rate, is the level of experience, the number of children, level of responsibility (such as newborns, allergies, special needs) and live in or out.
The best way to determine your market rate is to ring and discuss rates with your local nanny placement agencies.
Legal requirements to keep in mind are as follows:
1. At a minimum, the gross hourly rate for a nanny or au pair over 21 is $17.29 throughout Australia except for $17.52 in WA ( as at July 1 2014). This rate must be met, even for au pairs (unless it is a cultural exchange placement).
). The minimum hourly rates are reviewed each year July 1.
2. To hire as a casual or permanent employee? There is a general trend to a casualisation of the workforce and the definition of what a casual employee is, seems to be left deliberately vague. But the basic rule of thumb is an employee is casual, if there is no regular hours or promise of ongoing work. So if you employee the same nanny each week the same hours, they should be probably paid as a permanent employee, even part time nannies.
There are advantages to hiring nannies as permanent employees, the main one being the ongoing employment works both ways and by hiring as a permanent employee your nanny is required to give notice on resignation.
3. Hiring a nanny as a casual, requires the casual loading of 25% through Australia except ( you guessed it) WA where the rate is 20% on top of the gross wage. This is replace the entitlement of annual and sick leave and paid public holidays.
4. Nannies on the whole prefer to be paid by the hour rather than on a set wage. This is due to a number factors, that there is no flexibility in their role on starting times and finishing times, the number of hours worked are usually quite long shifts and due to the nature of their role there is never a time when they are not working or on call.
5. Once your nanny works 30 hours or more a week, paying super becomes a statutory requirement. Superannuation is currently 9.5% of gross and will stay at that rate until 2021 and will then increase to 10%. Please note that if you have a fixed price that’s inclusive of super, once super is calculated the remaining balance has to meet the minimum hourly rates.