Nanny vs Daycare: Which One is Right for Your Family in 2025?

Deciding on whether a Nanny or Daycare is right for your Family

For many Kiwi families, balancing work, finances, and whānau life means finding the right childcare setup. Two of the most common options are hiring a nanny or enrolling your tamariki in daycare but how do you know which one fits best?

In this guide, we’ll walk through the key differences between the two, including average NZ costs, government support like WINZ subsidies and ECE funding, and what’s best for different lifestyles.

What Is a Nanny in NZ?

A nanny is someone you employ to care for your children in your home, often on a regular, ongoing basis. They may be full-time or part-time, and hours are usually tailored to your family’s needs. In New Zealand, most nannies are considered employees, which means you’ll need to manage payroll, tax, and entitlements (or use a payroll service like Pay The Nanny to handle this).

Pros of a Nanny:

• One-on-one attention in your child’s own environment
• Flexible hours (ideal for shift workers or parents working from home)
• Reduced exposure to illness
• Can help with school pickups, meals, and household routines

Cons:

• Higher cost per child (especially if you only have one)
• Limited peer socialisation (unless part of a playgroup or nanny share)

What Is Daycare in NZ?

Daycare in Aotearoa usually refers to licensed early childhood education (ECE) services, such as kindergartens, centres, or home-based care. These are regulated under the Ministry of Education and follow a curriculum called Te Whāriki.

Pros of Daycare:

• Group learning and socialisation opportunities
• Eligible for 20 Hours ECE for 3–5 year olds
• More affordable per child than a nanny
• Structured routines and educational outcomes

Cons:

• Less flexible hours and holiday closures
• Higher exposure to colds and viruses
• Drop-offs and pick-ups may clash with work schedules

Childcare Costs in New Zealand (2025)

 For more guidance around the average hourly rates for a nanny in New Zealand check out our guidance here.

Note: If you hire a nanny, you’ll need to factor in extra costs like PAYE, KiwiSaver, public holidays, and annual leave. You can use a service like Pay The Nanny to manage all of this for you.

WINZ Childcare Subsidy Explained

Work and Income NZ (WINZ) offers a childcare subsidy to help lower-to-middle income families cover the cost of either daycare or nanny care. The subsidy amount depends on your income and hours of care needed. You can check your eligibility here.

Who Offers More Flexibility?

If you need care early in the morning, late in the evening, or variable hours, a nanny will almost always be more flexible. They come to your home, follow your child’s routines, and can adapt as your work situation changes.

In contrast, most daycare centres have fixed opening hours (typically 7:30am – 5:30pm) and charge late pick-up fees.

Social and Educational Benefits

Daycare centres offer built-in opportunities for your child to:

• Interact with others
• Learn through play
• Transition into school-readiness

But that doesn’t mean nannies can’t support learning. Many nannies in NZ attend local playgroups, Storytime at the library, Playcentre sessions, or mainly music to ensure children socialise and engage with the community.

Health & Sickness Considerations

If your child is prone to illness (or you simply can’t afford to take frequent sick days), a nanny may be a safer bet. Daycares, despite their hygiene protocols, naturally expose tamariki to more bugs which is great for immunity in the long term, but tricky for working parents.

Which Option Suits Which Family?

A NANNY may suit you if:

• You have a baby or multiple children under 5
• You need flexibility (shift work, part-time hours, work-from-home support)
• You want your child cared for in a familiar environment
• You can afford to pay for one-on-one care

DAYCARE may suit you if:

• You want your child to socialise in a group setting
• You have a 2 - 5 year old who qualifies for 20 Hours ECE
• You’re looking for more affordable full-time care
• You want a structured environment aligned with school prep

What About Nanny Shares?

Nanny sharing is becoming more common in Aotearoa where two families split the cost of one nanny who looks after both sets of kids. This reduces costs, builds socialisation, and provides more personal care than centre-based childcare.

It works best when:

• Children are similar ages
• Families live nearby
• There’s a clear agreement on location, schedule, and expectations

You can read more about setting up a nanny share here.

Find a nanny with Caresies

Caresies makes it easy to connect with trusted local carers across New Zealand.

Here’s how to get started:

1. Create a free account at Caresies.co.nz
2. Post a job listing outlining your family’s needs - include location, hours, pay rate, and any special requirements
3. Browse nanny profiles and invite them to apply or wait for interested carers to apply directly
4. Chat with candidates, shortlist your favourites, and organise interviews right through the platform

Caresies gives you full control over the hiring process, and with thousands of parents and carers already using the platform, it's one of the easiest ways to find a nanny who fits your whānau.

==> Post a Job with Caresies

Final Thoughts

Whether you choose a nanny or daycare, your decision will come down to what matters most for your family - flexibility, budget, learning style, or peace of mind.

Nannies offer tailored, home-based care that fits around your lifestyle. Daycare offers structured social learning and affordability. In some cases, doing both might be the sweet spot!

Whatever path you choose, Caresies is here to help you find reliable, local carers you can trust.

==> Browse local nannies near you on Caresies.co.nz