Compensation & Benefits Guide for a Nanny

(Washington, DC Area)

Prepared by the nannies at The Nanny Co.

Hiring and retaining a great nanny involves offering a compensation package that is fair, competitive, and compliant with local laws. This guide provides an overview of typical nanny salaries in the Washington, DC area and outlines common benefits and perks that families provide. Use this as a reference to budget for your nanny and to ensure your offer aligns with U.S. and DC norms.

1. Overview of Nanny Compensation in DC

Hourly Rates and Annual Compensation

Nanny pay in DC is among the highest in the nation, reflecting the city's high cost of living and professional job market. As of 2025, typical hourly rates for professional career nannies in the DC metro area range roughly from $25 to $45 per hour, depending on the nanny's experience, education, and the job requirements. The average is about $28–$32 per hour. For a full-time schedule of ~40 hours/week, this translates to around $52,000–$93,600 per year before taxes.

Guaranteed Hours

In the nanny industry, it's standard to guarantee a set number of hours/pay per week (e.g., a guaranteed 45 hours pay even if you only use 40 one week). Nannies rely on steady income, so guaranteeing their weekly pay based on a set schedule (or a minimum number of hours) is standard practice. The flip side of this is that your nanny is in turn guaranteeing you their availability for your previously agreed upon schedule each week. You can always offer additional pay if you exceed that, but the guarantee provides stability for all parties.

Overtime

Federal law requires paying overtime (1.5x hourly rate) for hours over 40/week for household employees. If you anticipate needing 50 hours of care weekly, you should budget an extra 10 hours at time-and-a-half.

Raises

Plan for periodic raises or cost-of-living adjustments. A common approach is to review compensation annually. For example, a 3-5% raise each year can keep the compensation in line with the market and recognize your nanny's growing experience with your family. Performance based raises are also standard and show recognition and help encourage the retention of your nanny. If additional duties beyond childcare or extra children are added to your nanny's responsibility, it should be renegotiated and reflected in your nanny's compensation.

2. Typical Benefits Provided

In addition to wages, a career nanny position includes a set of benefits. Here's a list of common benefits and what is typical in the area:

  • Paid Vacation: Standard offering is at least 2 weeks (10 days) of paid vacation per year for a full-time nanny. Some families increase this after several years of tenure (e.g., 3 weeks after 3 years). It's good to clarify how vacation is scheduled – requiring advance notice (often at least 2-4 weeks).
  • Paid Holidays: Nannies typically get major federal holidays off with pay if those fall on a work day. Common paid holidays include New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day (and often Black Friday too), and Christmas Day. Some families also pay for MLK Day, Presidents' Day, Christmas Eve, New Year's Eve, etc., especially if the parents have those days off. Many families do offer extra paid time off to their nannies over the major winter holidays (Christmas Day through New Years Day) so they don't need to use all their PTO. Clarify which holidays are paid in your agreement. If the nanny is asked to work on a holiday, often you'd offer extra pay (holiday pay at 1.5x or 2x).
  • Sick Leave: Providing paid sick days is important and DC law mandates at least 3 paid sick days for household employees. Many families offer at least 5 days up to unlimited sick leave, understanding that their nanny will often be providing sick care for mildly ill children, it is a sign of good faith to not deduct sick days when your nanny falls ill as a result of caring for your sick child. You can also roll unused sick days over or simply reset each year; most nannies will only use what they need.
  • Health Insurance Contribution: Offering a health insurance stipend or reimbursement is a highly valued benefit. Many families will contribute to a nanny's health insurance, often by paying a portion of an existing plan or a stipend. A common approach is offering to pay 50% of the nanny's monthly premium for an individual health plan (which might be a few hundred dollars a month). Alternatively, a flat stipend (for example, $200 per month) toward health insurance or healthcare costs can be offered. This benefit can be a deciding factor for candidates, as health insurance is expensive. If you can't offer a health insurance stipend, on top of the nanny's desired hourly rate, it may be in both parties best interest to negotiate that stipend into the compensation and take advantage of the tax free benefit. (Consult a CPA or payroll service).
  • Commuting/Transportation: Depending on your location and the nanny's commute, you might include a Metro pass or parking permit. For example, if you live in central DC and your nanny drives, covering the cost of a parking spot or permit in your neighborhood is a nice perk. If they take public transit, you could provide a SmarTrip card with monthly fare. This is especially considerate if your nanny is coming from outside the District. Consider transportation options if you plan on having your nanny transport your children - this would be a work expense and should either be provided or reimbursed. (IRS mileage reimbursement as of 1/1/2025 is 70 cents per mile)
  • Retirement/Savings Plans: A small number of families offer contributions to a nanny's retirement (like a SIMPLE IRA, 401ks, or just an annual bonus meant for savings). You might consider offering this benefit to attract and retain someone long-term. Even a modest IRA contribution (e.g., $50-$100 a month) can set you apart as an employer.
  • Year-End Bonus: It's customary in many areas, including DC, to give a year-end or holiday bonus as a sign of appreciation. A common amount is one to two weeks' pay as a bonus if the nanny has been with you a year. If the nanny starts mid-year, families prorate the bonus accordingly. While this is "optional," it's an ingrained industry practice.
  • Professional Development: Some families offer to pay for the nanny to attend workshops, classes, or conferences (e.g., a child development class, CPR renewal, or nanny training seminar). In DC, organizations occasionally have nanny training days or one can take an early childhood education course at a community college. Covering fees for these (and paying the nanny for her time attending if it's during work hours) can be a benefit that improves her skills for your child's benefit.
  • Miscellaneous Perks: Little things can be part of the package too – like providing lunch (if the nanny eats with your kids, most families just include her in groceries/meal planning). Some families provide a work cell phone or a stipend for phone usage, especially if a nanny is expected to use her smartphone for communication/photos during the day. If your nanny stays late, offering a paid taxi or ride-share home is considerate (safety at night, etc.). While these aren't formal "benefits," they enhance the job's appeal.