December 20, 2021
How much does a nanny cost in Ireland? [Updated 2023]
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:
How do I calculate my nanny’s basic hourly rate of pay?
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.
What is the difference between Gross and Net pay?
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.
What tax deductions are made from the gross wage?
PAYE (income tax), Employee’s PRSI, and USC are the three main deductions made from your nanny’s pay:
- Income tax is charged at 20% up to the standard rate cut-off point of €40,000 as of 2023. If your nanny earns more than that, they will pay 40% on the remainder. (Source: Citizens Information)
- Tax credits are then offset against the tax amount to calculate the final tax owed. Standard tax credits €1,775 as of 2023. (Source: Citizens Information)
- PRSI is Pay Related Social Insurance, referred to as your “stamps” in old money and USC is the Universal Social Charge.
Are there any other costs if I hire a nanny?
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)
How do I calculate my nanny’s net pay?
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.
By SureSitter