Your employer offered you $25 per hour for full-time care of two children under five. You said yes because it sounded good, because you needed the job, because you didn’t know what else to ask for. Three years later, you’re still making $25 per hour for significantly more responsibility than you had initially. You’ve heard vague references to nannies making “way more” but nobody actually says numbers. Your friend mentions her nanny salary is “pretty good” but won’t specify what that means. Online forums show massive ranges that don’t help you understand where you fall. You have no concrete idea whether you’re being paid appropriately for your experience, your market, your responsibilities, and your skills. The whole compensation conversation feels like secret that everyone’s keeping from everyone else, leaving you to guess whether you’re valued fairly or being significantly underpaid.
This information vacuum affects nannies constantly and it’s one of the primary reasons compensation inequity persists in household employment. Unlike corporate jobs where salary ranges are increasingly transparent, where sites like Glassdoor provide data, where professional networks freely share compensation information, household employment operates in near-total darkness about what people actually earn. Nobody wants to share their salary because it feels too personal, too loaded with implications about their worth and their family’s wealth. Families don’t want employees comparing notes because it might reveal that they’re underpaying relative to market. The result is environment where individual nannies have no reliable baseline for assessing whether their compensation is fair, which leaves them vulnerable to significant underpayment without realizing it. We’ve been placing nannies in Austin and across markets for over twenty years and we’ve watched talented nannies accept and stay in positions paying well below market rate simply because they don’t know what market rate actually is. Let’s talk about why compensation information stays hidden, what indirect indicators suggest you’re underpaid, how to research market rates without insider information, and how to assess total compensation beyond just hourly rate.
Why Nobody Talks Numbers
The cultural taboo against discussing salary runs deep and it affects household employment more than most fields because the relationship feels personal rather than purely professional. Talking about your salary with other nannies feels like bragging if you make more or feels embarrassing if you make less, so most nannies avoid specifics entirely. Nannies worry that sharing salary information will damage relationships with other nannies. If you make significantly more than your friend makes, your friendship might become awkward. If you make less, you might feel resentful or your friend might feel guilty. Avoiding the topic preserves relationship comfort even though it prevents both of you from having information you need.
Families actively discourage or sometimes contractually prohibit salary discussions because they don’t want employees realizing they’re paid differently than peers. If your employer pays you $22/hour while your neighbor’s nanny makes $32/hour for similar work, they’d rather you not know that gap exists. Some employment agreements include confidentiality clauses about compensation specifically to prevent sharing that information. Even without formal prohibition, employers make clear through comments or attitude that they expect you to keep salary private. The personal nature of household employment makes compensation feel tied to your worth as person rather than as professional metric. Your salary becomes loaded with implications about whether your employer values you, whether you’re good enough at your job, whether you deserve more. That emotional weight makes the topic feel too vulnerable to discuss openly.
Market-rate information isn’t readily available the way it is in other fields. There’s no Glassdoor for nannies. Professional organizations publish ranges but they’re often too broad to be useful. “Nannies in Austin earn $20-35/hour” doesn’t help you know whether your $25 is low, middle, or high within that range given your specific circumstances. Geographic variations within cities mean Austin overall data doesn’t account for whether you’re working in Westlake versus East Austin, which affects market rates significantly. Families cluster in neighborhoods with similar wealth levels and pay patterns, but you’re not likely to meet nannies from very different socioeconomic areas to compare.
Indirect Indicators You’re Underpaid
You haven’t received raise in multiple years despite increased responsibility, additional children, or significant expansion of duties. Stagnant compensation while your workload increases suggests family isn’t tracking market rate or isn’t committed to keeping your pay competitive. When you casually mention your rate in conversations (even without exact numbers, just general sense of range), other nannies react with surprise or concern. If experienced nannies seem shocked by what you’re making, that reaction is data point even if they won’t say their exact rates.
Job postings for positions similar to yours list significantly higher rates than you earn. If you’re seeing full-time nanny positions in Austin for two kids advertised at $30-32/hour and you’re making $24/hour for similar work, that gap is concrete information about market rate. Online communities and forums where nannies discuss compensation show ranges that your salary falls far below. While individual posts aren’t perfect data, patterns across many discussions provide general sense of market. If most nannies in major metro areas describe making $28-35/hour and you’re at $22, you’re likely underpaid.
Your employer seems uncomfortable or defensive when you raise compensation questions. Families paying fairly are usually open to discussing salary and explaining how they determined your rate. Families who know they’re underpaying often become evasive, change subject, or react defensively to compensation conversations. You have significantly more experience, credentials, or specialized skills than baseline nanny but your compensation doesn’t reflect that differential. If you have college degree, specialized training, multiple languages, or years of experience but you’re making entry-level nanny wage, something’s wrong.
Your benefits package is minimal or nonexistent while job postings show robust benefits are standard. If you’re not getting paid time off, health insurance contribution, professional development support, or other benefits that appear in many nanny job listings, your total compensation is below market. When your employer hires additional help or replaces you temporarily, they pay notably higher rate than your regular salary. If they pay $35/hour for weekend coverage but pay you $25/hour for regular full-time work, they understand market rate and they’re consciously paying you below it.
How to Research Market Rates
Join online nanny communities specific to your city or region. Facebook groups, forums, and professional networks often include compensation discussions that, while not always perfectly transparent, provide general sense of ranges. Austin Nanny Network, local childcare professional groups, and city-specific forums can offer better data than national sources. Follow agencies in your area publicly. Look at job postings they share, note rates when listed, pay attention to benefits packages described. Agency postings often show market rate more accurately than individual family postings because agencies understand competitive compensation. Seaside Nannies and other reputable agencies in Austin regularly post positions that include salary ranges.
Professional organizations including International Nanny Association publish salary surveys that, while broad, establish baseline expectations. These surveys break down by region, experience level, and responsibilities which helps you identify where you should fall within ranges. Talk to other household staff including house managers, private chefs, and estate managers about general compensation structures. While their specific rates aren’t directly comparable, understanding how household staff in your area are compensated overall provides context for whether nanny compensation in your household seems aligned with broader household employment market.
Consult with placement agencies even if you’re not actively job searching. Call Seaside Nannies or similar reputable agencies, describe your experience and responsibilities, and ask what salary range positions like that typically command in Austin currently. Agencies have most current market data because they’re actively placing nannies daily and they know what families are paying. Most agencies will share general range information even without formal placement relationship. Look at cost of living data for Austin relative to your salary. If your compensation hasn’t kept pace with Austin’s rapidly rising housing costs and general cost of living, you’re effectively getting pay cut year over year even if nominal salary stays same.
Understanding Total Compensation
Hourly rate is important but total compensation package matters more for assessing whether you’re paid fairly. Some families pay moderate hourly rate but provide exceptional benefits that make total package competitive. Others pay higher hourly rate but provide no benefits, which might actually be less valuable overall. Health insurance contribution is worth thousands to tens of thousands annually depending on coverage. If family pays your health insurance premium, that’s significant compensation beyond hourly wage. Calculate the monthly premium cost and add it to your effective hourly rate to understand true compensation.
Paid time off including vacation days, sick days, and holidays represents additional compensation. If you get three weeks paid vacation, that’s 120 hours of pay yearly that you receive without working. If another nanny makes $2/hour more but gets no PTO, your effective compensation might be higher. Professional development support including conference attendance, training courses, or continuing education has both immediate financial value and long-term career value. Family that pays for your CPR recertification, sends you to childcare conferences, or supports additional certifications is investing in your professional growth beyond just salary.
Use of family car, phone, or other resources affects your personal expenses. If family provides car for work use that you can also use for personal errands, that saves you vehicle expenses. If they provide phone, that eliminates your phone bill. These seemingly small benefits add up to meaningful compensation. Performance bonuses, end-of-year gifts, or other discretionary payments should factor into total annual compensation even if they’re not guaranteed. If family regularly provides $2000+ year-end bonus, that affects your annual earnings significantly.
Schedule flexibility, job security, and work environment quality have value even though they’re not direct compensation. Family that offers flexible schedule when you need it, provides consistent employment without random layoffs, or creates exceptionally positive work environment offers something valuable even if salary isn’t highest possible. You have to decide what that’s worth to you. Some nannies trade lower salary for significantly better working conditions. Others prioritize maximum compensation and accept less ideal conditions.
Assessing Whether Your Specific Situation Warrants Higher Pay
Certain factors should command premium compensation beyond baseline nanny rate. If you have any of these, you should be at higher end of market range or above it. Multiple children, especially three or more, requires significantly more skill and energy than single child care. If you’re caring for three kids and making same rate as nannies with one child, you’re underpaid. Children with special needs, behavioral challenges, or medical requirements demand specialized skills and extra work. Premium compensation is appropriate for complexity beyond typical childcare.
Significant household duties beyond childcare including cooking for family, household management, or extensive cleaning should increase compensation to reflect you’re doing family assistant or household manager work, not just childcare. College degree, specialized certifications, or advanced training in child development, education, or related fields warrants higher compensation than baseline nanny rates. Families hiring you for your credentials should pay accordingly. Multiple languages fluently spoken command premium, especially if you’re using those languages with children as part of language immersion or international travel.
Irregular schedule including frequent evening work, weekend work, or on-call availability requires additional compensation beyond regular daytime nanny rates. Flexibility has value to families and you should be compensated for providing it. Extensive travel with family requires premium pay because it disrupts your personal life and requires extended availability. Live-in positions typically pay somewhat less hourly but should provide high-quality private accommodations and privacy that have value. If you’re live-in with poor accommodations or no real privacy, the reduced hourly rate isn’t justified.
Long tenure with family combined with increased responsibility over time should result in meaningful raises. If you’ve been with family five years, you’ve taken on more responsibility, children have different needs than when you started, and you’ve proven reliability and value, you should be making significantly more than starting rate. Years of professional experience prior to this position command higher rates. If you have ten years of nanny experience, you shouldn’t be making entry-level wages regardless of how long you’ve been with current family.
How to Approach Compensation Conversation
Do your research thoroughly before requesting raise so you can present concrete data about market rates, not just feelings about deserving more. Document your responsibilities, accomplishments, and value you provide to family. Be specific about how you’ve gone above baseline childcare, how you’ve contributed to children’s development, what you handle that makes parents’ lives significantly easier. Request formal meeting to discuss compensation rather than bringing it up casually. “I’d like to schedule time to discuss my compensation” signals this is serious professional conversation.
Present your case clearly and factually. “Based on my research of current market rates in Austin for nannies with my experience level and responsibilities, comparable positions are paying $X-Y. I’m currently making $Z, which is below market rate. I’d like to discuss adjusting my compensation to align with my experience and the value I provide.” Be prepared with specific number you’re requesting, not vague “I’d like a raise.” Know what compensation would feel fair to you and ask for it. “Based on market research and my four years of experience with your family, I’m requesting adjustment to $32/hour.”
Be ready to discuss total compensation package, not just hourly rate. If family can’t or won’t increase hourly rate significantly, would additional benefits make difference? Enhanced PTO, health insurance contribution, professional development budget, guaranteed annual raises, these might be negotiable even if base rate isn’t. Stand firm on your value but remain professional and calm. Families may push back, express surprise, or try to justify current rate. Don’t get defensive or emotional. Restate your research, your value, and your request. If family refuses to adjust compensation to fair market rate and you’ve presented strong case, you have decision to make about whether to stay or pursue positions that will compensate appropriately.
When Research Reveals You’re Significantly Underpaid
Finding out you’re making $8-10/hour less than market rate for your experience and responsibilities is jarring, but it’s important information that helps you make informed decisions. Don’t panic or react impulsively. Take time to process what market rate information means for your situation and what you want to do about it. Decide whether current family might adjust if approached professionally with data, or whether their compensation philosophy or financial constraints mean they won’t pay market rate regardless of your value.
If you believe they’ll negotiate in good faith, use the approach outlined above. If you don’t think they’ll budge meaningfully, you might need to find new position to get fair compensation. Start exploring market quietly. Look at job postings, talk to agencies, understand what opportunities exist before making any moves. You don’t want to leave current position without knowing you can find better one. When you do leave, you’re not obligated to explain that compensation was reason, but being honest can provide feedback families need. “I’ve accepted position that offers compensation more aligned with market rate for my experience level. I’ve appreciated working with your family but I need to make decision that’s right for my financial future.”
Accept that some families won’t or can’t pay market rate and that’s incompatible with staying long-term. If family is genuinely at their financial limit and can’t increase your compensation meaningfully, and you need market-rate compensation to meet your own financial needs, those realities are incompatible. Neither party is wrong, the position just isn’t sustainable long-term. Use what you’ve learned about market rates to negotiate confidently in future positions. Now that you have real data about what you should be making, you can advocate for appropriate compensation from the start of new positions rather than accepting whatever’s offered.
After twenty years placing nannies across Austin and everywhere else, we’ve learned that compensation transparency remains one of the biggest challenges in household employment. Talented, experienced nannies often work for years significantly below market rate simply because they lack information about what they should be earning and families aren’t motivated to correct that information gap. The nannies who protect themselves financially do the research to understand market rates, assess their total compensation package honestly, advocate clearly for fair pay, and leave positions where compensation doesn’t align with their value. If you’re wondering whether you’re being paid fairly, invest the time to actually find out. The information exists if you look for it actively, and knowing where you stand gives you power to make informed decisions about your career and your compensation.
