How much should I pay a nanny in Australia in 2024?

An overview of hourly rates in Australia for nannies paints a reasonably positive picture this year. That is despite the number of families paying closer attention to the minimum wage and who may be feeling the strain and squeeze due to inflation and a sluggish economy.

One of the main headlines is that nanny pay is slightly above the national inflation rate for the year ended December 23rd 2023.

If you’re asking yourself, “How much should I pay my nanny,” read on as we crunch the numbers and discover some interesting insights.

Australia’s Minimum Wage and Nanny Pay

To put things in perspective, the national minimum wage rate of $23.23 came into effect on July 1st, 2023. The government will revisit it in mid-2024. 

We’ve done a bit of careful research to help you budget for your nanny. Here are the typical nanny pay rates in Australia for 2024 that you need to know about:

• National Average Hourly Rate: $34.26
• Average National Minimum Rate: $25
• Maximum Hourly Rate: $50

The national average hourly rate of $34.26 represents a very healthy increase of about 4.9%. That’s when compared to the previous year’s average of $32.66. Given that national inflation was running at 4.1% for the year ended December 23, this is a welcome average pay rise for nannies.

What Should I Pay My Nanny in 2024?

Lots of families have become stuck between a rock and a hard place when it comes to what to pay their nanny. On the one hand, their own budgets have been facing a tight squeeze. On the other, nannies are in demand, and they also want to see their wages rise in line with inflation.

There is no time like the present to consider reviewing your nanny’s pay rate. A rise will boost their sense of value and act as an incentive for them to stay working for you. If you’re trying to find a nanny, you’re also more likely to get a more experienced and better-qualified nanny if you pay them well.

How Much Should I Pay My Nanny in the City?

There are many factors that will play into pay fluctuations between different nannies. Experience and qualifications are two, but where you live will be a crucial driver. Some states and cities command higher-than-average salaries across the board.

An increased demand for nannies in places where there are lots of families and a higher cost of living may also be critical factors that add fuel to the fire. Here are the average hourly rates for nannies broken down by state:

• Australian Capital Territory: $33.33
• New South Wales: $35.74
• Queensland: $31.38
• South Australia: $34.56
• Tasmania: $28.51
• Victoria: $34.66
• Western Australia: $25.54

NB: Northern Territory figures unavailable at time of writing

The main urban centres tend to outpace the national average. It’s also perhaps not surprising that Victoria and New South Wales are leading the pack in the nanny pay scale, given that their state capitals are two of the most expensive Australian cities to live in. Both states were at the national average for all nannies earning above $25 per hour.

Tasmania and Western Australia are at the bottom of the table when it comes to the lowest minimum average rate. The average minimum paid to nannies in both states is $27 per hour.

It is worth mentioning at this point that all the rate increases exclude super. It is also set to increase to 11.5% from 1st July 2024 onwards.

What to Consider When Deciding Hourly Rates? 

We’ve already touched on experience and qualifications. There are other factors to weigh up when paying your nanny. Entrusting the care of your children to the care of another human being is a big ask. It’s only right that you should pay a nanny fairly for the critical work they do.

On top of all this, other considerations may have an impact on the hourly rate you pay your nanny. These include:

• The age of your child or children
• What you can realistically afford
• The types of duties you expect of your nanny

There will be other related costs involved, too. These include:

• Paid Leave and sick pay
• Super contributions
• Workers’ Comp Insurance
• Car insurance for your nanny if you want them to drive your vehicle

How Much to Pay My Nanny?

Making sure everything’s above board when employing a nanny takes a lot of time and effort. This can be hard on busy parents who are already juggling a career and managing economic squeezes.

Pay the Nanny has a team of qualified accountants and financial and taxation specialists. We’ll help you understand the average nanny wage and hourly rate for a nanny.

For one low and affordable monthly fee, let Pay the Nanny sort out all the admin connected to paying your nanny, from taxes to super and Workers’ Comp. For the time and stress that you’ll save, it’s a small price for getting nanny payroll in Australia sorted.