How To Calculate A Nanny’s Salary

Determining a fair and accurate compensation package for a nanny involves more than just picking an annual number. Because domestic workers are typically protected under federal and state labor laws, calculating a nanny's salary requires a clear understanding of hourly rates, regular workweeks, and additional compensation.

1. Start with the Hourly Rate

In the United States, under the Fair Labor Standards Act (FLSA), nannies are generally classified as non-exempt employees. This means they must be paid for every hour worked, making the hourly rate the foundational metric of their salary. Even if you agree on a "weekly salary," it must legally translate to a compliant hourly wage that meets or exceeds the applicable minimum wage in your city or state.

2. Determine the Regular Schedule

To calculate the base weekly pay, multiply the agreed-upon hourly rate by the guaranteed regular hours the nanny will work each week. For example, a nanny working 40 hours a week at $25 per hour has a regular weekly base pay of $1,000.

3. Factor in the Annual Timeline

To convert this weekly figure into an estimated annual salary, multiply the weekly base pay by 52 weeks (or the specific number of weeks you require care). This provides the Gross Annual Salary before taxes and benefits are applied.

4. Account for Additional Compensation

A complete compensation package often includes more than just the base rate. When calculating the final salary, consider:

• Guaranteed hours (paying for a set schedule even if you send the nanny home early)
• Health insurance stipends
• Paid time off (PTO) and sick days
• Annual bonuses