Melbourne is a thriving nanny market where you can find nannies in large numbers and where they have access to professional development and networking opportunities. Standards for fair and legal pay can be high. This means Melbourne nanny rates can vary a lot depending on the nanny and the role.

At Nanager, we offer two options for you when it comes to paying your nanny. We can take care of everything by employing your Nanager for you. This means we will only charge you an hourly fee based on the hours they work. This is usually a more expensive option than doing it yourself, but saves you all the paperwork and responsibility of legal employment.

Once you’ve decided on a long-term Nanager, we highly recommend moving to employing them yourselves. This will bring your costs down overall. We recommend our payroll partner, NannyPay, if you need support with that. As the employer you will have more responsibilities, including deciding what to hourly rate to offer your nanny and covering additional expenses that come with employment.

So how do you work out a fair Melbourne nanny rate?

The Fair Work minimums

The first factor to consider for Melbourne nanny rates is the minimum wage a nanny is entitled to be paid. Nanny employees in Australia are covered under the Miscellaneous Award (Level 2, except for the first 3 months in a role). The minimum rates are not industry standards, but are the legal bare minimums.

By checking the Miscellaneous Award on the Fair Work website you can view the current minimum hourly rates – which vary depending on whether the nanny is a casual employee (no paid leave) or permanent employee (paid leave entitlements). The Award will also outline other conditions you need to meet or exceed.

The detailed Pay Guide (which you can download here) specifies the higher rates you need to factor into your minimum Melbourne nanny rates for evenings, weekends, public holidays, and hours over 38 per week.

The reality of Melbourne nanny rates in the current market

The Miscellaneous Award isn’t specific to nannies and doesn’t take the role and responsibilities of a nanny into account. It’s important to understand the market range to determine the Melbourne nanny rates you use.

Your average nanny just starting out
For a nanny with less than 2 years of experience you will likely be looking at a casual hourly wage between $29-32 per hour or a permanent hourly wage between $23-28 per hour.

A nanny with some experience and/or relevant education behind them
For a nanny with 2-5 years of experience and/or an early childhood qualification (or similar) you should consider a casual hourly wage between $32-36 per hour or a permanent hourly wage between $28-34 per hour for straightforward childcare duties.

A ‘career nanny’ with significant experience
For a nanny with 5-10+ years of experience working as a nanny or in a related field, you will likely need to factor a casual hourly wage between $35-40 per hour or a permanent hourly wage between $32-38+ per hour into your calculations for Melbourne nanny rates.

Nannies working atypical or shorter shifts, and nannies who take on more than simple childcare duties (as in many Nanager roles) may also expect higher rates than outlined above.

Additional expenses to remember when calculating your total Melbourne nanny rates

Super – Your nanny may be legally entitled to Super and, even if they are not, it is common and reasonable for them to be paid Super on top of their hourly rate. At Nanager, Super is a standard entitlement in all our roles. 

Insurance – It is a requirement for you to have a Workers Compensation Insurance Policy to cover domestic employees in your home. The cost of this will depend on the salary you are paying.

Mileage and other reimbursements – The Miscellaneous Award outlines allowances that are required to be paid and may add things on top of your Melbourne nanny rates. One of these is mileage if the nanny is driving their own car on the job. You can view the current vehicle allowance rate per kilometre under Wages and Allowances in the Award. 

Payroll costs – Whether it’s the cost of time if you work out how to do it yourself, or the fees charged by a payroll company like NannyPay, this is an expense that needs to be factored in.

The bottom line

Employing a nanny is generally a bigger expense than using other forms of childcare (a nanny can provide wonderful support though, of course!). But Melbourne nanny rates can vary depending on your needs and the nanny you choose to employ.

As always, it’s important to consider your budget but also the value that a nanny will bring to your lives. Someone caring for your children in the home is someone you want to show your appreciation to – both by treating them well and paying them appropriately!