The Cost of Hiring a Nanny in New Zealand: A Breakdown of Expenses
Thank you for reading this post, don't forget to subscribe!Hiring a nanny can be a lifesaver for busy parents in New Zealand, providing them with the flexibility and peace of mind that comes with knowing their children are being well cared for. However, the cost of hiring a nanny can be a significant expense, and it’s essential to understand the various costs involved before making a decision. In this article, we’ll break down the expenses associated with hiring a nanny in New Zealand, helping you to plan and budget for this important investment in your family’s well-being.
Gross Salary: The Largest Expense
The gross salary of the nanny is the largest expense when hiring a nanny in New Zealand. The salary will depend on the nanny’s qualifications, experience, and the number of children they will be caring for. On average, a live-out nanny in New Zealand can expect to earn between $45,000 and $65,000 per year, while a live-in nanny can earn between $35,000 and $55,000 per year.
Employer Costs: Additional Expenses
In addition to the nanny’s gross salary, employers in New Zealand are also responsible for paying employer costs, which include:
- Pay As You Earn (PAYE): Employers must deduct PAYE from the nanny’s salary and pay it to the Inland Revenue Department (IRD). This includes income tax, Accident Compensation Corporation (ACC) levies, and student loan repayments.
- Annual Leave and Holiday Pay: Employers must provide the nanny with four weeks of annual leave and pay them for public holidays.
- Sick Leave: Employers must provide the nanny with five days of sick leave per year.
- KiwiSaver Contributions: Employers must contribute to the nanny’s KiwiSaver account, if they are eligible.
These employer costs can add up to 10-15% of the nanny’s gross salary, making it essential to factor them into your budget.
Other Expenses: Agency Fees, Interviews, and More
Other expenses to consider when hiring a nanny in New Zealand include:
- Agency Fees: If you use a nanny agency to find a nanny, you can expect to pay a fee, which can range from $500 to $2,000.
- Interview Expenses: You may need to pay for travel and accommodation expenses for the nanny to attend interviews.
- Background Checks: You may want to conduct background checks on the nanny, which can cost around $100-$200.
- First Aid Training: You may want to require the nanny to have first aid training, which can cost around $100-$200.
Total Cost: A Breakdown
To give you a better idea of the total cost of hiring a nanny in New Zealand, here’s a breakdown of the expenses:
- Gross salary: $50,000 per year (average)
- Employer costs: $5,000-$7,500 per year (10-15% of gross salary)
- Agency fees: $1,000 (average)
- Interview expenses: $200 (average)
- Background checks: $100 (average)
- First aid training: $100 (average)
Total cost: $56,400-$59,300 per year
Conclusion
Hiring a nanny in New Zealand can be a significant expense, but it’s an investment in your family’s well-being and can provide you with the flexibility and peace of mind you need. By understanding the various costs involved, you can plan and budget for this important expense. Remember to factor in the gross salary, employer costs, agency fees, interview expenses, background checks, and first aid training when calculating the total cost of hiring a nanny. With careful planning and budgeting, you can find a qualified and trustworthy nanny to care for your children.