Nanny payroll & true cost
What does a nanny truly cost in BC? Nanny payroll estimator for 2026.
Quick answer
A nanny in BC costs $27–$35+/hour in 2026, which works out to roughly $63,000–$80,000/year for full-time (40 hours/week), which includes employer CPP, CPP2, EI, WorkSafeBC, vacation pay, and statutory holidays.
Nannies in Vancouver and across BC typically range from $27 to $35+ per hour in 2026, depending on experience, certifications, and the role itself. What you actually pay also depends on whether you are agreeing on a gross rate (the wage before deductions) or a net rate (what your nanny takes home).
On top of the hourly rate, there are employer costs to plan for:
- CPP (5.95%)
- CPP2 (on income above the YMPE)
- EI (2.324% on the employer side)
- WorkSafeBC premiums
- Vacation pay (4%)
- Statutory holidays
For a full-time nanny working 40 hours a week, your annual planning range usually lands between $63,000 and $80,000+ depending on hourly rate, hours, and benefits.
Use the estimator below to plug in your own numbers and see what works for your family.
Employer cost estimator
Uses 2026 Canada rates for CPP, CPP2, and EI. This is an estimate for planning only and is not tax, legal, or payroll advice.
- Estimated annual gross pay
- $0
- Estimated monthly gross pay
- $0
- Gross pay per pay period
- $0
- Employer CPP
- $0
- Employer CPP2
- $0
- Employer EI
- $0
- Estimated annual employer CPP, CPP2, and EI
- $0
Estimated monthly set-aside: $0
Nanny payroll glossary
Terms to know before you hire
- CPP
- Canada Pension Plan. A federal program that requires both employers and employees to contribute a percentage of earnings toward retirement income.
- CPP2
- A second tier of CPP contributions introduced in 2024, applied to earnings between the YMPE and a second annual ceiling (the YAMPE).
- EI
- Employment Insurance. A federal program that provides temporary income support to workers who lose their jobs. Both employers and employees contribute.
- YMPE
- Year's Maximum Pensionable Earnings. The annual income ceiling for the first tier of CPP contributions. Earnings above this ceiling fall into CPP2.
- WorkSafeBC
- British Columbia's workers' compensation system. Employers, including household employers of nannies, pay premiums to cover workplace injury claims.
- Gross rate
- The hourly wage agreed before any deductions. Most employment math in Canada uses gross rates.
- Net rate
- The hourly wage a nanny takes home after CPP, EI, and income tax deductions. Some families negotiate net rates; this requires a gross-up calculation to know the true cost.
- T4
- The year-end tax slip an employer issues to each employee showing annual earnings and deductions. Required for nannies, generated by Heart Payroll.
- Record of Employment (ROE)
- A document an employer issues when an employee stops working. Required by Service Canada when a nanny leaves a household.
Daycare waitlist backup
Didn’t get the spot you wanted, or one at all? We get it.
Sunhouse Nannies and babysitting memberships help families cover the gap when waitlists do not come through, maternity leave is ending, or daycare hours do not fit the family schedule.
Questions
Nanny payroll & cost FAQs
How much does a nanny cost in Vancouver?
Nannies in Vancouver typically range from $27 to $35+ per hour in 2026, depending on experience, certifications, and the role's responsibilities. Newborn specialists, nannies with ECE training, and live-in or live-out arrangements all influence the rate. Use the estimator above to see what your specific situation might look like.
What is the true cost of a nanny in BC?
On top of the hourly wage, BC families plan for employer CPP, CPP2 (if applicable), EI, WorkSafeBC, vacation pay, and statutory holidays. For a full-time nanny working 40 hours a week, the annual planning range is roughly $63,000 to $80,000+ depending on hourly rate and benefits. The estimator above breaks this down using your numbers.
Do I have to pay CPP and EI for my nanny?
Yes. When you hire a nanny in Canada, you become a household employer, which means CPP, CPP2 (above certain income thresholds), and EI contributions are required. Both you and your nanny contribute. Sunhouse families use Heart Payroll to handle the remittances automatically so nothing gets missed.
What is CPP2 and does it apply to my nanny?
CPP2 is a second tier of Canada Pension Plan contributions introduced in 2024 for income above the Year's Maximum Pensionable Earnings (YMPE). For 2026, it applies to earnings between the YMPE and a higher second ceiling called the YAMPE. Most full-time nannies earning a competitive rate in BC will hit this threshold, and the estimator above includes CPP2 in its calculation.
Is a nanny cheaper than daycare in Vancouver?
For one child, daycare in Vancouver (averaging $1,200 to $2,200 per month) is usually less expensive than a nanny. For two or more children, the math often shifts in favour of a nanny, since the nanny cost stays flat while daycare costs scale per child. The break-even is typically around two to two-and-a-half children, or when your family needs flexible hours daycare cannot accommodate. A nanny also takes school pickups, snack prep, and the daily logistics of a busy household off the parents’ plate, value that does not show up in the cost-per-month math.
Do I need WorkSafeBC for my nanny?
Yes, in most cases. WorkSafeBC coverage is generally required for nannies and household caregivers in BC, with premiums calculated at roughly 1.5% of payroll. Coverage protects both you and your nanny in the event of a workplace injury. Heart Payroll can handle WorkSafeBC registration and remittance on your behalf.
What is the Sunhouse Heart Payroll discount?
Sunhouse is a Heart Payroll affiliate, which means Sunhouse families receive a discount when signing up for Heart Payroll’s household payroll services. The discount applies automatically when you indicate that you are a Sunhouse family during signup. Heart Payroll then handles all CRA paperwork, remittances, T4s, and Records of Employment so you can focus on your family.
Rate sources and assumptions
CPP and CPP2 assumptions use Canada Revenue Agency 2026 payroll deduction tables. EI assumptions use the Canada Employment Insurance Commission 2026 rate for Canada outside Quebec. Always confirm current requirements with CRA, Service Canada, or a payroll professional.
Sources: CRA CPP rates, CRA YMPE and YAMPE limits, and CRA EI rates.