Should grandparents be paid to babysit their grandkids?

Written by Natalie Reilly for Australian Seniors

Christina Atherton had been living in Sydney for 10 years with her husband, Joel, when her daughter Harriet turned one. Christina was planning to return to work part-time as PR manager for Tourism Victoria, but with no close family nearby and Joel working long hours as a lawyer, it seemed like daycare was a natural fit. Until Christina’s mother, Johanna, suggested she mind the little girl. 

“Harriet was the first grandchild on my side of the family and my mum was just so excited to finally have a grandchild and loved spending as much time with her as possible,” Christina explains. 

There was one problem: Johanna, then in her 60s, lived in Newcastle, two-and-a-half hours away. “I didn’t expect her to do this for free given they were long days, and she was travelling from Newcastle, so despite her protesting, we paid her a nominal amount each week.”

The fee, $100 for two days’ work, including one night staying over, turned out to be a great decision. “Mum stayed at our place so she was there in the mornings to help with Harriet, while Joel and I got ready for work,” Christina says, who would arrive back home after work without the worry of rushing back to pick up Harriet from childcare.

Most grandparents enjoy babysitting

Christina is not alone. According to research published in 2022 by the Australian Institute of Family Studies (AIFS), 63% of grandparents are caring for their younger grandchildren (aged 10 and under) and the biggest reason is to help parents who work. Caregiving grandparents bring with them a wealth of lived experience and similar value systems to their own children. Then, of course, there’s the fact that the child is already familiar with them, alleviating the stress from childcare drop-offs. 

Getting paid for it, though? That might feel a little wrong to a grandparent who already adores their grandchild and likes helping out. In fact, the AIFS research finds that 97% of grandparents say they enjoy providing childcare.

If you’re looking after grandchildren or want to build a closer relationship with them, read our 10-step guide to being a good grandparent.

Payments for grandparents looking after grandchildren in Australia

Looking after a baby or small child, even if you can ‘hand them back’ at the end of the day, is undeniably labour-intensive. The Australian government recognises this, so grandparents who care for their grandkids for more than 65% of the time, and meet other criteria, might be eligible for a grandparent subsidy payment. Some employers even allow grandparents to take parental leave – or ‘grandternity leave’ – as a job perk. “Beyond the obvious financial benefit, grandparents enjoy the sense of being valued for their contribution and not taken for granted,” social researcher Ashley Fell says, from McCrindle Research.

How much should grandparents be paid for babysitting? 

Payment arrangements can vary widely based on family dynamics and financial flexibility. But factors such as housekeeping, cooking and length of hours need to be taken into account, Ashley says. It might be helpful to find out what the average nanny earns and go from there. “Some families agree on a weekly stipend, while others pay an hourly rate or offer ‘pay’ through covering specific expenses. Establishing clear expectations helps both parties understand the value of time and effort.”

Set boundaries early to avoid family friction

Clear communication is also vital if you want to stave off resentment on both sides, Ashley says. “To avoid potential friction, it’s helpful to set clear boundaries from the beginning. Grandparents and parents should regularly check in about schedules, responsibilities and preferences to ensure everyone’s on the same page. Balancing flexibility with respectful communication can prevent misunderstandings and micromanaging frustrations.”

Finding other caregivers

Unfortunately, not everyone has the advantage of calling on family to help with caregiving. This was certainly the case for Paige Kilburn and her husband Warren, founders of NannyGranny, a company that connects experienced caregivers aged over 50 with families who need help. 

Without any immediate family living close by, the Kilburns instead hired nannies to help look after their young children while they worked. “We spent the first year training new nannies in what seemed like a never-ending doom-loop,” Paige explains. “The nannies were good, but all in their early 20s and had busy lives with uni and travel and we kept having to start again.”

After a year of this cycle, they decided to seek out someone more settled with real-life experience raising kids: a retired mother. “Finding our NannyGranny was a game changer,” Paige says. “She quickly became an extension of our family, she was reliable, hardworking and really loved our kids. She still works with us today.”

For Paige’s nanny, meanwhile, helping out a family was more lucrative and satisfying than her past 20 years working retail, and she set up the online network. Today the Victorian-based business has 1,500 NannyGrannies in its community, with plans to expand the brand Australia-wide. “We don’t discriminate as NannyGranny is an inclusive culture, so you can be any gender from any background, but we mandate that all NannyGrannies have a valid Working with Children Check.”