Is an Au Pair Cheaper Than a Nanny?

Childcare is an essential consideration for many families, particularly for working parents seeking reliable and affordable assistance. In Australia, parents often weigh the options of hiring an au pair or a nanny to care for their children. Both options offer unique advantages, but one factor that significantly influences decision-making is the cost. In this article, we will explore the costs associated with hiring an au pair versus a nanny in Australia to help parents make an informed choice that aligns with their budget and childcare needs.

Understanding the Roles of Au Pairs and Nannies

Before delving into the cost comparison, it is essential to understand the roles of au pairs and nannies. An au pair is typically a young person, often from a foreign country, who comes to live with a host family and takes care of their children in exchange for room, board, and a small allowance. Au pairs are seen as cultural exchange participants, and their responsibilities usually include child care, light household duties, and providing a cultural experience for the family.

On the other hand, a nanny is a professional caregiver who is hired to look after children within their own home. Nannies may have various qualifications and experience levels, and their roles primarily focus on providing personalized care for the children, assisting with educational and developmental activities, and undertaking some household tasks related to the children.

Factors Influencing Cost

The cost of hiring an au pair or a nanny can vary significantly based on several factors:

  1. Wages and Allowances: When employing a nanny, families typically negotiate a monthly or hourly wage based on the nanny’s qualifications and experience. In contrast, an au pair generally receives a weekly allowance, which is often less than a nanny’s wage due to the inclusion of room and board.
    Au Pair: Host families must provide an au pair with a weekly stipend, which can vary depending on the country of origin and the number of working hours.

    Au Pair vs Nanny Cost:
    Most nannies in major cities in Australia cost between $30-35 per hour, while for an au pair the recommended hourly wage is $9 – 10 AUD

    On average, au pairs receive a stipend between $250 to $300 per week.
    Nanny: Nannies, as professional caregivers, command higher salaries. Their pay can vary greatly based on experience, location, and job responsibilities.
  2. Accommodation and Meals: Hosting an au pair involves providing them with a private room and meals, which can add to the overall cost.
    Au Pair: Host families are required to provide the au pair with a private room and regular meals, which are typically included as part of the agreement.
    Nanny: Nannies usually do not receive room and board as part of their compensation package since they commute to the family’s home.
  3. Agency Fees: Families may choose to hire nannies through agencies, which may incur additional fees for matching them with suitable candidates. Au pairs are also sometimes hired through agencies, leading to similar cost considerations.
  4. Taxes and Legal Obligations: Employing a nanny in Australia means adhering to tax and superannuation obligations. These expenses should be factored into the overall cost.
    Au Pair: Families may incur extra costs for the au pair’s cultural activities, transportation, and other personal expenses.
    Nanny: With nannies, additional costs may include benefits such as health insurance, paid time off, and potential tax obligations.

Cost Comparison

On the surface, hiring an au pair may appear more cost-effective than a nanny due to the provision of room and board and the smaller weekly allowance. However, there are additional costs associated with hosting an au pair, such as agency fees and potential cultural exchange program expenses. Conversely, nannies may have higher hourly or monthly wages, but the absence of accommodation and meals might balance out the costs in the long run.

It is essential to consider the duration of child care needed as well. For short-term childcare needs, an au pair might be a more economical choice. However, for long-term arrangements, employing a nanny could offer better financial benefits.


Deciding between an au pair and a nanny in Australia involves assessing various factors, including cost, cultural exchange opportunities, childcare needs, and legal obligations. While an au pair may seem cheaper on the surface, additional expenses like agency fees and cultural exchange program costs should be taken into account. On the other hand, nannies’ wages might be higher, but families can save on accommodation and meal expenses. Ultimately, the choice between an au pair and a nanny should depend on the family’s unique needs, budget, and preferences for their children’s care.