Know your worth

Understanding your value as an in-home caregiver is one of the hardest parts of the job, because often the only people you work with are the families who hire you, and what they offer can sit well below market rates. Here is how to work out what you are actually worth, and how to set a rate you can stand behind.

The best places to understand nanny and babysitter rates are agencies, like Little Smiles Nannying, because agencies work with both families and caregivers and see the full picture. Little Smiles Nannying is free for career caregivers, and Emma is always happy to talk through market rates against your experience and qualifications.

Job boards can give you a feel for what families advertise, though remember you are only seeing what families hope to pay. On local social media groups you will often see caregivers advertising below market rates, and sometimes below minimum wage, so treat those as a warning sign rather than a guide.

Step 1: How you are paid. Are you a contractor working under your own ABN (the most common setup for babysitters), where you carry the admin, tax, and super yourself? Or a payroll employee of the family, employed much like a shop assistant? Your rate needs to reflect which one you are.

Step 2: The minimum. Nannies and babysitters generally fall under the Miscellaneous Award 2020 (MA000104), whose casual minimum wage is around $32.31 per hour. Rates are reviewed each year and usually change on 1 July, so always confirm the current figure with Fair Work.

Step 3: Superannuation. You can account for super in your rate or on your invoices, so your retirement grows just like any other profession. The Super Guarantee is currently 12 percent of earnings.

Step 4: Insurance. Liability insurance is a sensible minimum, and professional indemnity insurance is well worth it. It is a real cost, so build it into your rate.

Step 5: Your duties. The more you take on, the more your service is worth. Multiple children, household duties, family-assistant work, and using your own vehicle (check the Award's vehicle allowance in Part 4, Section 17) all justify a higher rate.

It happens, and it is usually alright. Most families come around once you explain the reasons behind your rate. The advocacy bodies generally advise against negotiating down, because it can be taken advantage of, though a family you genuinely want to work with is your call. Always remember you are worth it.