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how much to pay a nanny?

A friend of my sister's has offered to watch my LO when I go back to work.  We are meeting with her tonight and after speaking with her on the phone I am pretty sure this will work out perfectly! I already know that she would like to be paid under the table but if we get that far tonight I am wondering what we should offer her per hour if she doesn't have a price in mind? She would be coming to our home every day Monday - Friday and watching LO for about 6-7 hours per day.  Any suggestions are appreciated!
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Re: how much to pay a nanny?

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    I have a friend of mine who is a stay at home mom watch my boys as well.  She watched my first son up until last month when he started preschool and now she watches our second son.  We do a daily rate instead of hourly.  No matter how many hours (up to 8) she gets paid the same rate.  So even if it is a short work day and my kids are at her house for 3 hours she still gets the same amount.  I take my boys to her house so she doesn't have to go anywhere.  Because it is consistent work her daily or hourly rate is less than I would pay someone who would watch my kids at night or weekend when going out.  (I usually do about $7-8/hour for that).

    Based on that (and because she is a good friend) she charges me $20/day.  Once my 1st son became about 18mo we started giving her an additional $20/week to cover his food that he ate at her house.  She gets yearly bonuses of $100 at Christmas time.  

    Since you have this lady coming to your house maybe it would be reasonable to increase her daily rate to help with cost of gas and car maintenance.  Maybe $25-35/day.  Hope this helps!

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    I think it depends. I would never give just $20-30 for a day of work if it was a single day. I pay my nanny $10/hour to watch my son 1 day a week, and she also does some light housework. If she does additional tasks, I give her extra. However, i think $250 for a week of work would be fair- I base that on the average daycare rate for a week, plus a little extra because they are coming to your house and solely responsible for your child. 
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    We are hiring a nanny for 40 hours/week for $500 / week, so about $12.25/ hour is the breakdown.

    She also gets $100 on her birthday and $100 at Christmas and 2 weeks vacation.

    Our preK for our 1-year-old charges $1400/ month, so this is higher, but we also get to make her hours and have weekend help.   That's a huge advantage.

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    Wow... this is way less than I thought. I am nervous to bring this discussion up since the person we are wanting to ask to be our nanny is my husband's sister. I want it to be economical, but I have no clue what is reasonable. She would be watching our baby at our house that is less than 5 miles from hers. She has a 1 year old whom she stays at home with and mentioned that she is willing to watch ours as well since we both work full time. It would be for 40 hours a week. Is it better to do hourly or a flat day rate?
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    When my sister nannied she was paid a flat rate, but they would give her extra if they went over 8 hours for the day.
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