From pocket change to six-figure incomes, the amount of money nannies earn varies in the extreme. This can make it tricky for families to determine a fair budget for childcare help. There are a couple factors to consider when deciding how much to pay a babysitter in Berlin. In this article, we’ve laid out a couple of the most important things you’ll need to consider.
Should I hire a nanny or a babysitter?
The technical difference between a nanny and a babysitter is crucial when determining a fair hourly rate. A nanny is a private caregiver that will work for your family on a regular basis—anything from 10 to 40 hours per week or even more. A babysitter is a private caregiver that works occasionally, such as for date nights or special events.
Because nannies are more likely to work only for one family at a time, they are more likely to be paid via an employment contract. Babysitters, on the other hand, can work for multiple different families and do not need to set up a contract for each session. They are more likely to work on a freelance basis.
Nannies may also work on a freelance basis, if they are splitting their time among multiple families. Whether your nanny works as a freelancer or on an employment contract will be one of the biggest determining factors when deciding how much to pay. More on this in the next section.
Is it okay to pay my nanny cash?
Many families and caregivers in Berlin wind up working on a cash basis. This decision poses great legal risks to both parties. Whether you are aware of the risks or not, both families and caregivers can still be penalized to the full extent of the law for using cash payment.
For workers, this is generally categorized as an “administrative offense” for performing unregistered work. This can result in fines of up to €50,000, per HandbookGermany.de. For employers, failing to properly register and pay social contributions is categorized as a “criminal offense” and can result in even higher fines or jail time.
Freelance nannies vs. Employed nannies
In Germany, the legal way your nanny works will be one of the biggest indicators of how much she should earn. There are two main options for a nanny or babysitter to work legally in Germany:
- freelance (freiberuflich)
- employed (angestellt)
When it comes to employed work, categories can be further broken down even further into mini-job, midi-job, part-time, full-time, or temporary work—but we will delve into those differences in a separate article. For now, let’s stick to freelance and employed nannies.
Freelancers handle all their own social contributions—insurance, tax, and so on—out of the income they make. What’s more, they generally don’t receive any paid sick time or holiday. This means their earnings need to be substantial enough so that the nanny can set around 30-40% aside to cover these mandatory expenses, and still have enough to live on.
In contrast, an employee is entitled to benefits like paid sick leave and vacation days. Plus their employer (in this case, the family) contributes to their social contributions (health care, pension, unemployment, etc.). This means that while the nanny’s take-home income (netto income) is less, part of her social contributions are being paid out before she receives that take-home amount,
Because of this difference, freelance nannies need to receive a higher hourly rate than employed nannies in order to wind up with comparable wages.
How much do nannies earn in Berlin?
Because so many nannies work for cash, there are no comprehensive surveys on exactly how much the average nanny salary in Berlin is. Even international surveys rarely clarify whether they have surveyed cash workers or legal workers (legal workers meaning those paying taxes and other social contributions).
Therefore, it’s impossible to say for certain how much the average Berlin nanny or babysitter earns each month. Looking at averages can be misleading, anyway, because the rate a nanny earns is based on multiple different factors, such as years of experience and specialized training or skills. For instance, a bi-lingual nanny with a drivers’ license, first aid clearance, a Montessori certificate, and 15 years of experience might charge up to €50 per hour. A 20-year-old nanny with only a high school education and one language might charge just €15.
How much should I pay my nanny?
The pay range for Berlin nannies is broad, so we’ve come up with a few questions to ask your nanny to decide on a fair rate.
1. Are you working as a freelancer or on an employment contract?
If your nanny is a freelancer, a fair minimum starting salary is around €25. Remember that around 30% of a freelancer’s income is going to social contributions. So a freelancer earning €25 per hour is really only earning around €16.25 netto. Plus, freelancers don’t receive paid sick time or holiday, so this is another eventuality they need to save for. This means they need a solid buffer compared to their employed counterparts, who can get by with around €19 or €20 as a fair starting rate.
2. How many hours will you be working, and when?
If you’re willing to commit to hiring your nanny for a full 40 hours per week, then she may be willing to give you a slight discount on her hourly rate. However, if you want your sitter to be available periodically on Friday, Saturday, and Sunday afternoons until late evenings, expect to pay more. A top-tier freelance babysitter is easily in the €25 to €45 range.
3. Can you provide references?
A nanny that can provide multiple, positive, verifiable references is generally a better candidate than one who cannot. If a nanny has already spent years cultivating and maintaining warm relationships with other families, the odds that she is able to replicate that for your family are higher than with a less experienced candidate. This should also be reflected in the nanny’s wage.
4. Do you have other qualifications?
Specific qualifications like being a native speaker of a language, medical training, a driver’s license, or newborn experience are all things that set certain nannies apart from the rest. These types of qualifications generally come at some time and expense to the nannies themselves, and should be valued as such. The more in-demand a skill, the more the nanny might be able to charge. A native English speaker with her own car and drivers’ license, for instance, could easily charge €35 or €40 per hour as a freelance rate.
The important thing to remember when deciding how to pay your babysitter is that not all caregivers are the same. They have different levels of experience and skills that should be evaluated and compensated accordingly. If you’re comparing the spare change you earned from babysitting in high school to the rate you’re paying a fully licensed professional, you might want to think again. And remember, we’re still in Germany. The taxes are high—even for babysitters.
5. How much does a Lighthouse nanny cost?
Every Lighthouse nanny and babysitter comes with a myriad of qualifications. They each hold a university degree or are currently enrolled in uni, they have verified references, infant and child first aid certification, and German liability insurance suitable for working in others’ homes. These come at great cost to the caregiver themselves, which is why we insist on a minimum rate of €20 per hour for employed nannies and €25 per hour for freelancers. These are the minimums we impose, but each nanny is allowed to set their own rate as they see fit. Nannies with more experience, superior references, and additional skills generally charge in the €28 to €40 range.
Need a nanny or babysitter for your family? Contact us at hello@lighthousenanny.com to learn more about our matching process.
