What is a nanny and how much does a nanny cost? A nanny is a caregiver who works exclusively with your family and who provides care in your home. A nanny is considered your employee and is entitled to all the statutory rights and entitlements of a nanny.
In terms of how much a nanny costs here is what you need to know:
The hourly rate for a nanny will depend on a range of factors including their experience, qualifications, and training, the number and ages of the children they’ll be minding, the extent of their duties (do you expect your nanny to do household tasks, if so expect to pay a higher rate). Rates vary nationally also, with nannies in Dublin, Cork, Galway and other urban areas commanding higher rates.
The hourly rate for a nanny varies from €11.30 per hour (minimum wage from January 2023 in Ireland) up to €20 per hour depending on the factors listed above.
Nannies and minders often negotiate their salary in net terms as this is the amount of money that they will take home each week. We always recommend that you, as parents agree on a gross rate with your nanny. Every employee tax situation is different and if you negotiate a net rate you could find yourself incurring additional tax costs, based on your nanny’s personal tax circumstances that are outside your control. To prevent this agree on a gross hourly rate with your nanny from the outset.
PAYE (income tax), Employee’s PRSI, and USC are the three main deductions made from your nanny’s pay:
Employers are liable to pay the Employer’s PRSI. This is calculated at 8.8% on weekly earnings up to €441 as of 2023 or 11.05% on weekly earnings over €441 as of 2023. (Source: Citizens Information)
If your nanny or au pair is live-in, you can make deductions of €0.87 per hour for board and €23.15 per week, or €3.32 per day for lodgings (Source: Citizens Information)
The total cost to you is gross pay plus employer’s PRSI.
You withhold the deductions from your nanny’s pay and pay this, along with your Employer’s PRSI contribution, over to Revenue every month.
You pay your nanny their net pay (gross pay less deductions). See our guide for more details on your for your nanny payroll obligations.