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When hiring a professional nanny, it’s not just about offering a competitive salary—it’s about presenting a comprehensive package that acknowledges the value and dedication your caregiver brings into your home. Whether you're a busy executive, physician, athlete, or a parent managing a dynamic household, understanding what benefits you should offer your nanny can make all the difference in retaining top-tier talent and creating a long-lasting, harmonious relationship.
In this guide, we explore what benefits you should offer your nanny, from legal requirements to thoughtful perks that support their wellbeing and career growth. Creating a comprehensive benefits package helps position your household as a respectful, forward-thinking employer.
Knowing what benefits you should offer your nanny reinforces your role as a professional household employer. Providing a well-rounded package communicates respect and appreciation—and supports your nanny’s physical, emotional, and financial wellness.
Understanding what benefits you should offer your nanny ensures you remain compliant, compassionate, and competitive.
Before adding extras, let’s clarify what benefits you should offer your nanny that are legally mandated:
Social Security and Medicare Taxes - As a household employer, you are required to pay and withhold FICA taxes. This includes both the employee and employer portions of Social Security and Medicare taxes. Using a payroll service specifically tailored for household employment can help simplify this process.
Unemployment Insurance - Most states require employers to pay into state unemployment insurance on behalf of their domestic worker. This protects your nanny in the event of unexpected job loss.
Workers’ Compensation - Depending on your state, workers’ compensation may be mandatory. This covers your nanny in case of injury while on the job. Even if it’s not required in your area, offering it provides essential protection for both parties.
Overtime Pay - Under the Fair Labor Standards Act (FLSA), live-out nannies must receive overtime pay (1.5x their hourly rate) for hours worked over 40 per week. While live-in nannies have different requirements in some states, overtime pay is a good-faith practice that supports fairness and prevents burnout.
Always consult a household employment lawyer or tax advisor to ensure you remain compliant with all state and federal labor laws.
Offering health-related benefits is one of the most appreciated and forward-thinking steps you can take as an employer. It's a tangible way to show you care about your nanny’s wellbeing, both inside and outside of work.
Health Insurance Reimbursement or Stipend - While you’re not required to provide insurance, offering a monthly health insurance stipend or reimbursing a portion of premiums can be a game-changer. Many families offer between $200–$400/month depending on the plan and hours worked.
Dental and Vision Care - Adding dental and vision support—even in the form of flexible stipends—can further differentiate you as a desirable employer. These added layers of wellness support go a long way in promoting long-term job satisfaction.
Mental Health Support - Mental wellbeing is just as critical as physical health. Providing access to mental health apps, covering a few therapy sessions per year, or encouraging mental health days can help reduce stress and create a positive, empathetic work environment.
Nannies deserve time to rest, reset, and recharge. Including paid time off (PTO) and holidays in your benefits package is more than courteous—it’s essential.
Vacation Days - Two weeks of paid vacation is standard, though families may offer three or more weeks depending on the nanny’s longevity and performance. Some families align at least one of those weeks with their own travel or vacation schedule.
Paid Sick Leave - Offer a minimum of 3–5 paid sick days per year. You can also allow unused sick time to roll over into the next year or provide an end-of-year cash-out option.
Paid Holidays - Include paid federal holidays when your household is closed. The most common ones are:
Some families include holidays such as Martin Luther King Jr. Day or Juneteenth to reflect inclusive values.
Allow your nanny to swap holidays for personal or cultural celebrations.
High-quality nannies deserve to be compensated fairly for their time and effort. Ensuring clarity and consistency in payment practices is key to maintaining trust and professionalism.
Overtime Pay - Always honor legal overtime requirements. Even if your nanny is salaried, you must track hours and compensate accordingly.
Fair Raises - Offer annual performance reviews that include a merit-based raise. Many families increase wages by 3–7% annually or offer a flat increase depending on the role and inflation.
Guaranteed Hours - If you travel or take time off, your nanny should still receive a guaranteed number of hours each week. This gives them financial consistency and shows respect for their role.
Use a payroll service that tracks hours, handles taxes, and simplifies reporting.
Retirement planning demonstrates your long-term commitment to your nanny’s financial security.
Supporting a nanny’s retirement goals communicates value and respect for their future.
Nannies are more than babysitters—they're educators, mentors, and caregivers. Supporting their continued education benefits your entire household.
When you help your nanny grow, they pour that growth back into your child’s development.
Transportation support reduces stress and improves punctuality—especially in metropolitan areas.
Travel Childcare - If your nanny travels with your family, provide:
Well-planned travel benefits ensure your nanny feels respected and prepared for the journey ahead.
If you hire a live-in nanny, it’s vital to set boundaries and offer adequate amenities.
Live-in roles can be deeply rewarding—but only when both parties feel respected and supported.
If your nanny is also a parent, consider how you can support their family too.
Allowing Their Child Onsite - If appropriate, allowing your nanny’s child to be present during work hours may support their work-life balance. Clearly define expectations, roles, and boundaries to ensure the setup works for everyone.
Childcare Stipend - Offer a stipend to offset their own childcare costs if their child cannot accompany them to work. This is a meaningful and inclusive benefit that can drastically improve job satisfaction.
Your nanny is a part of your parenting team. Inclusive communication builds a solid foundation of trust.
Weekly Check-Ins - Set aside time each week to debrief, talk schedules, and give/receive feedback. It’s a space to align and stay ahead of potential misunderstandings.
Collaborate on Child Development - Your nanny likely has firsthand insights into your child’s moods, behaviors, and interests. Encourage dialogue and partnership around developmental milestones, routines, and learning goals.
Acknowledge Milestones - Celebrate work anniversaries, birthdays, and achievements. Small gestures of appreciation go a long way.
Recognition is the glue of long-term relationships. Bonuses and gifts show you value your nanny beyond the day-to-day.
Contracts protect both the family and the nanny. They establish clear expectations and prevent confusion down the road.
Review the contract annually and make updates as needed.
Providing a robust benefits package doesn't just attract great nannies—it keeps them.
By now, you understand what benefits you should offer your nanny—not just to be competitive, but to be fair, supportive, and aligned with modern professional standards.
A well-compensated nanny is a happy nanny. When you invest in your caregiver, you’re investing in your family’s future.
At Elite Nanny League, we believe that great nannies deserve great families. Let us help you build that partnership with confidence, care, and excellence.
When it comes to high-profile families, exceptional caregiving is more than a perk—it’s a necessity. At Elite Nanny League, we understand that today’s modern household requires more than basic childcare. That’s why we match families with professional nannies who bring unparalleled dedication, training, and emotional intelligence to every role.
Whether you’re a CEO, physician, athlete, or navigating the demands of a fast-paced lifestyle, your nanny is more than a caregiver—they’re a trusted extension of your family. Offering thoughtful benefits reflects your household values and sets the tone for a lasting, respectful relationship.
At Elite Nanny League, we go beyond placements. We build partnerships rooted in discretion, excellence, and care. Because when elite families need support, only elite standards will do.
Ready to elevate your nanny experience? Contact Elite Nanny League today and find the right caregiver who meets—and exceeds—your expectations.
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