Cost of Hiring a Nanny in New Zealand

Mark Hudson • Jul 20, 2021

What to Budget for When Hiring a Nanny in New Zealand

Employing a nanny may be the ideal solution for your child care needs but it also comes at a cost. It’s only sensible to factor in all the financial implications to your budget.

Hiring a nanny in New Zealand comes with certain responsibilities and obligations. Read on and arm yourself with the knowledge you need to ensure you fully understand the costs connected to your nanny payroll.

1. Agree On the Working Arrangement That Will Best Suit Your Family

You should work out the number of hours you need a nanny and on which particular days of the week. If you are looking for childcare at fixed times, then a nanny who doesn’t live with you could be the best option.

When your working routine is more irregular, things will get tricky if the hours you’ve agreed for nanny cover are set in stone. In these cases, a live-in nanny or au pair might be the more appropriate solution.

It could end up working out cheaper too. This is because you will have to provide accommodation in the form of a private bedroom and access to a bathroom. You can offset the cost of all this against the wage you’ll be paying your nanny.

2. Regional Variations of Nanny Costs in New Zealand

Where you live in New Zealand will have an impact on the salary you are likely to have to pay your nanny. Going rates are higher in Auckland than they are in Christchurch, for example. You can find more details about this here.

Experience and qualifications will also play in part in the rates of pay you should offer. You may be looking for a nanny with a background in specific child needs or one who is able to provide a little extra tutoring.

3. Understanding Your Legal Obligations

Hiring a nanny in New Zealand would usually create an employer/employee relationship. With that comes certain obligations that you will have to meet. You will be responsible for:

Paying your nanny’s income tax
Making KiwiSaver contributions, if your nanny is a KiwiSaver member
Paying annual leave, if applicable
Paying for sick leave
Making superannuation or pension contributions

You can find out more here about these and other related nanny costs in New Zealand.

4. Government Help with Childcare in New Zealand

Whether you or your family can get help with the cost of childcare will depend on how much you earn and the age of your children.

You may also be able to save money by sharing a nanny with another family. This can be useful if you only need a few hours of childcare each week. You should bear in mind that you will still have legal obligations as a separate employer.

You should also ensure you have sufficient employers’ liability insurance. This will protect you in the unlikely event that you ever incur legal costs.

5. Agree Your Nanny’s Salary in Gross Terms

You should always be sure to agree to nanny costs in gross rather than net salary amounts. By doing this you know that you have everything factored in.

If you were to simply agree to a net salary, all the unseen costs like taxes and superannuation payments would remain hidden. This would give you an inaccurate bottom-line cost.

Remember to factor in the expenses your nanny is likely to incur while they look after your children. These nanny costs would include things like activities, days out and meals at cafes or restaurants.

Let Us Take the Strain

We’re there to take on all your nanny payroll needs. That means you can relax knowing that all the admin has been properly taken care of and in line with your legal obligations.

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