What does a nanny cost in New Zealand?

In this guide, we've broken down the average rates of pay for a Nanny in Auckland (and throughout the country) as well as providing some other key consideration points. Whether you're a first-time employer or looking to adjust current arrangements, we’ve broken down the industry averages of pay for a nanny.

Are nannies employees or contractors in New Zealand?

One of the key misconceptions of hiring a nanny is that they can be hired as a contractor. Whilst this can make things simpler for administrative purposes, it can often leave the nanny in an unfair position and create issues for both parents and nannies in the future.

The main difference between an employee is a contractor is that an employee works for you and a contractor works for themselves. There are some tests for determining whether a nanny is an employee or a contractor. We’ve used guidance from Employment NZ and applied this to a traditional nanny arrangement:

• The key principle, in the context of a nanny, for determining whether they are a contractor or an employee is around the control and independence. A worker with greater freedom to choose who to work for, where to work, the tools used and so on, is more likely to be a contractor.
• A contractor is able to work when and how they decide and can even employ other people to complete their work for them. For a nanny, a family will usually set the hours they require a nanny to work and it would be unusual for them to be able to sub-contract out their work
  
• A contractor is responsible for deciding how they complete their work. In a nanny engagement, it would be unusual for a nanny to decide how work is completed. Whilst there will undoubtedly be flexibility, a family will likely set the hours, work required and where it needs to be completed
  
• A contractor is usually engaged for a set period or time or a project. Whilst this might be true when a nanny is employed on a fixed term in most scenarios, a nanny is employed on a regular basis, with set hours.
  

Pay The Nanny, who is a specialist in Nanny employment, also wrote a more detailed article around this. We’d recommend checking it out here.

What are the average rates of pay for a Nanny in New Zealand?

New Zealand is currently experiencing a period of relatively high inflation and nanny wages have increased accordingly too. We’ve researched from a number of sources and used the latest pay guideline from Pay The Nanny as well as publicly available rates of nannies on Caresies.

Pay The Nanny has provided payroll services for 1,000’s of nannies and in their most recent guide they outlined that the average rates for a nanny across New Zealand in 2024 are:

• Minimum: $23.15
• Average: $29.40
  
• Maximum: $50
  

Naturally, the range of nannies and how much they are paid varies widely. Less experienced nannies will be paid less and those with more experience or responsibilities will be paid more. The majority of nannies are paid between $26 to $32 per hour in New Zealand.

• Less than $24 p/hour: 10%
• $24 p/hour to $26 p/hour: 16%
  
• $26 p/hour to $28 p/hour: 17%
  
• $28 p/hour to $30 p/hour: 25%
  
• $30 p/hour to $32 p/hour: 13%
  
• $32 p/hour and above: 19%
  

The average rate of pay also differs between the major cities in New Zealand and nannies working in Auckland tend to be paid slightly higher.

• Auckland average nanny rate: $30.44 per hour
• Christchurch average nanny rate: $26.89 per hour
  
• Wellington average nanny rate: $28.31 per hour
  

What are the minimum entitlements for a nanny?

When it comes to hiring a nanny, it's essential to understand the minimum wage laws in New Zealand to ensure that your caregiver is compensated fairly. At Caresies, we are committed to maintaining fair pay practices, which is why we have established a minimum rate for nannies and babysitters that aligns with the national minimum wage.

In New Zealand, the minimum wage is a legal standard that ensures employees receive a baseline level of compensation for their work. As of 1 April 2024, the minimum wage is set at $23.15 per hour before tax. This rate applies to all employees aged 16 and over who are not starting-out workers or trainees. This extends to nannies at well.

The key points on parents complying with the minimum wage for their nanny:

• Legal Requirement: Adhering to the minimum wage is not just a guideline but a legal requirement. Families need to ensure that they remain compliant when hiring a nanny.
• Annual Reviews: The New Zealand government reviews the minimum wage annually, so it's important to stay informed about any changes to ensure ongoing compliance. If you are using Pay The Nanny, or another payroll service, they’ll keep you up to date with any changes  
  
• Additional Entitlements: In addition to the minimum hourly rate, nannies are entitled to other benefits such as holiday pay, rest breaks, and sick leave, as per New Zealand employment law. We’ve broken those down further below  
  

For more information around the minimum wage for nannies, Employment New Zealand offers some great articles and tools around this.

What is included in the hourly rate of a nanny?

Understanding what is included in the hourly rate of a nanny is crucial for both parents and nannies to make sure there are no surprises. When hiring a nanny in New Zealand, several components must be considered beyond just the hourly wage.

We’ve outlined the key ones below:

• KiwiSaver Contributions: Employers are required to make contributions to their nanny’s KiwiSaver retirement savings scheme if the nanny is enrolled and eligble. The current minimum employer contribution rate is 3% of the gross salary and this is usually paid on top of the contracted hourly rate.
• ACC Employer Levy: The Accident Compensation Corporation (ACC) levy is another mandatory cost for domestic employers. This levy helps cover the cost of work-related injuries and is a small percentage of the nanny’s gross salary.
  
•  Sick and Annual Leave: Employers need to provide paid sick leave and annual leave as per New Zealand employment law. Nannies are entitled to at least four weeks of paid annual leave each year, and at least five days of paid sick leave after six months of continuous employment.
  
• Public Holidays: Nannies are entitled to be paid public holidays if they fall on a day the nanny would normally work. This often catches out first-time employers but, given nannies should be employees, they are entitled to the same public holidays that any other employee in New Zealand would be entitled to..
  

It’s important to note that the hourly rate of a nanny is inclusive of all employee taxes, meaning the total amount paid by the employer already includes the necessary tax deductions. The exact amount of tax deducted from the nanny’s pay depends on their tax code, which is determined based on their individual tax circumstances. Employers should  ask their nannies to complete an IR330 as part of the onboarding process for their nanny.

What are the factors that influence the cost of a Nanny?

When it comes to determining the pay rate for your nanny, one size definitely doesn’t fit all. There’s a lot to weigh up and, unfortunately, there isn’t a prescriptive answer to exactly how to calculate your nanny’s pay rate because ultimately – “it depends”.

Some of the key factors that a family should consider when determining a fair rate of pay for their nanny:

• The experience of the nanny being hired.
• Your location within New Zealand.
  
• The job description and the hours of your nanny.
  
• How many children the nanny would be responsible for.
  
• The age of the child or children.
  
• Whether there are any specific qualifications required for your nanny
  

Underlying all the factors above will be the question around what you, as a family are prepared to budget for to pay your nanny.

How do you actually pay a nanny

If you are hiring a nanny as an employee and paying them a fair wage, the final step to consider is making sure that you are staying compliant for leave, payroll and taxes.

If you have hired a nanny, and are looking for payroll services, we partnered with Pay The Nanny and highly recommend them to families that use Caresies. Pay The Nanny will be able to assist with:

• Providing a template employment contract.
• Onboarding you and your employee.
  
•  Processing and paying payroll and issuing payslips.
  
• Filing and paying the necessary taxes with the IRD.
  
• Managing ACC employer levies.
  
• Managing leave obligations.
  
• Providing ongoing HR and employment support.
  

If you plan on preparing payroll yourself, there are a number of good payroll services and systems available in New Zealand such as Smartly, Payhero and Xero payroll. Each has their own advantages and disadvantages and different price points.

How does a parent start the process to hire a nanny?

Caresies is a New Zealand owned and operated platform that is designed to make it easy for parents to connect, meet and hire local babysitters and Nannies.

If you are parent and not sure where to begin, our Parents page and FAQ page, outlines how Caresies work and how to get started.

We also have some great resources available around hiring a nanny in Auckland and finding a babysitter.

If you have any questions, don’t hesitate to contact us by sending us an email to support@caresies.io.