Casual vs Permanent Nanny: Which Employment Type Is Right for Your Family? | Pay The Nanny [ Skip to main content ](#app) [ ![Pay the nanny logo](https://assets.paythenanny.nz/images/logo-white.png) ](/) [Parents](https://paythenanny.com.au/For-Families) [Nannies](https://paythenanny.com.au/For-Nannies) [Agencies](https://paythenanny.com.au/for-agencies) [Pricing](https://paythenanny.com.au/pricing) [Contact](https://paythenanny.com.au/contact) [Sign Up](https://paythenanny.com.au/signup) [Log In](https://paythenanny.com.au/app/login) Article ------- Casual vs Permanent Nanny: Which Employment Type Is Right for Your Family? ========================================================================== By Mark Hudson · 23 July, 2026 Hiring a nanny is an exciting step, but choosing the right type of employment can be confusing. Understanding the difference between a casual and permanent nanny helps you stay compliant with Fair Work, avoid costly mistakes, and ensure your nanny receives the correct entitlements from day one. ![Casual vs Permanent Nanny: Which Employment Type Is Right for Your Family?](https://assets.caresies.io/articles/215/conversions/kWzbE5wABKzShJcXkzyo-webp-featured.webp) Deciding how to employ a nanny is one of the first real decisions a family makes once they've found the right person for the job. Do you engage them as a casual, or bring them on as a permanent part-timer? It sounds like a small administrative choice, but it actually shapes pay rates, leave entitlements and your obligations under Australian employment law. Get it wrong and you could be underpaying your nanny without realising it, or paying more than you need to. The confusion is understandable. Plenty of families assume "casual" simply means flexible and cheap, while "permanent" sounds like a bigger commitment reserved for full-time roles. Neither assumption holds up once you look at how Fair Work actually defines these categories. What counts as a casual nanny ----------------------------- A casual nanny is someone you employ without promising them ongoing work in advance. You offer shifts as you need them, and your nanny is free to accept or turn them down. Because casual employees miss out on paid leave, they're paid a higher hourly rate through what's known as casual loading, which is designed to compensate for that gap. Here's the part families often miss: calling someone casual in a contract doesn't make them casual in the eyes of the law. The Fair Work Ombudsman looks at the real nature of the working relationship, not just the label attached to it. If a nanny works the same days every week with a genuine expectation that the arrangement will continue, that pattern points toward permanent employment regardless of what the paperwork says. What counts as a permanent nanny -------------------------------- Permanent employment can be full-time or part-time, and most nannies fall into the part-time bracket because they tend to work set hours across the week rather than a standard 38-hour roster. A permanent nanny receives paid annual leave, paid personal leave (covering sickness and carer's responsibilities), and the other protections set out in the National Employment Standards. In exchange for these entitlements, the hourly rate is generally lower than a casual rate, since the leave is being funded separately rather than folded into pay. The real test: certainty of ongoing work ---------------------------------------- The clearest way to tell the two apart isn't the number of days worked, it's whether there's a firm, ongoing expectation of future shifts. A nanny rostered on Monday to Thursday, 8am to 4pm, every week of the school term, looks permanent. A nanny who's called in occasionally to cover school holidays, date nights or unexpected gaps in care looks casual. Working only two or three days a week doesn't automatically mean casual either; plenty of permanent part-time nannies work exactly that pattern. Leave entitlements make the biggest practical difference -------------------------------------------------------- This is usually where families feel the impact most directly. A permanent nanny is entitled to paid annual leave, paid personal leave, compassionate leave, family and domestic violence leave, and superannuation where it applies. A casual nanny generally doesn't receive paid annual or personal leave, paid redundancy, or notice of termination, though they retain access to certain unpaid leave and other workplace protections. The trade-off is the casual loading built into their pay rate, which under many awards and for award-free arrangements sits around 25%, though families should always confirm the figure against the applicable award (see the [Fair Work Ombudsman's guide to casual employees](https://www.fairwork.gov.au/starting-employment/types-of-employees/casual-employees)). Which arrangement actually costs less ------------------------------------- This is where the "casual is always cheaper" myth falls apart. A higher hourly rate sounds more expensive on paper, but it exists precisely because it replaces the value of leave a permanent nanny would otherwise accrue. If your nanny works consistent hours all year, the total annual cost between casual and permanent arrangements can end up surprisingly close, and in some cases casual employment ends up costing more once the loading is factored in against hours worked. Common misconceptions worth clearing up --------------------------------------- A few beliefs come up again and again with families we speak to. "Casual is always cheaper" isn't necessarily true once regular hours are factored in. "We agreed it would be casual, so that settles it" doesn't hold up, because employment status is determined by the actual working relationship rather than the wording of a contract. And "it's easy to change later" is true in principle, but the switch needs to be documented properly and handled in line with Fair Work requirements, not just agreed verbally over a coffee. Trusted by 1,000+ families across New Zealand & Australia We calculate, file and pay. You don't. ---------------------------------------- Pay The Nanny runs your payroll, files with the ATO and pays your nanny on time, so you never have to. [ Enquire Now → ](https://paythenanny.com.au/contact)Employment contracts are included for our clients Choosing what's right for your family ------------------------------------- If your childcare needs genuinely change from week to week, casual employment may suit your situation well. If your nanny works a consistent schedule with an expectation that the role will continue, permanent employment is usually the more appropriate and legally sound choice, and it tends to offer more stability for both sides of the relationship. The goal isn't to pick whichever option looks cheapest on the surface. It's to choose the arrangement that genuinely reflects how your nanny works, because that's what Fair Work will look at if the classification is ever questioned. Getting the classification right from the start ----------------------------------------------- Misclassifying a nanny is one of the more common (and costly) mistakes families make, often without realising it until well after the fact. Backpay, superannuation shortfalls and unpaid leave entitlements can add up quickly once an error is identified, and unwinding an incorrect classification is far more disruptive than setting it up correctly in the first place. This is where having payroll expertise on hand makes a genuine difference. Pay The Nanny works with families across Australia to assess how a nanny's hours and working pattern actually stack up against Fair Work's definitions, then manages the payslips, leave accruals, superannuation and STP reporting that follow from that classification. Getting the employment type right at the outset isn't just a compliance box to tick, it's what protects both the family and the nanny as the working relationship continues. If you're unsure whether your current or prospective nanny should be classified as casual or permanent, it's worth getting that confirmed before the arrangement begins rather than after. [ ![](https://assets.caresies.io/articles/148/conversions/sBOhv1v5CEY33KqGGBZO-webp-featured.webp) ](https://paythenanny.com.au/articles/nanny-pay-rates-australia)By Mark Hudson · 12 December, 2025 ### [Nanny Pay Rates for 2026](https://paythenanny.com.au/articles/nanny-pay-rates-australia) Nanny pay rates across Australia have lifted again as we head in to 2026, with all states recording increases for both permanent and casual roles. This update breaks down the numbers, highlights key trends, and explains what shifting wage patterns mean for families and nannies. [Read more...](https://paythenanny.com.au/articles/nanny-pay-rates-australia) [ ![](https://assets.caresies.io/articles/195/conversions/zQ8MU1YwYuavvbz1PUNl-webp-featured.webp) ](https://paythenanny.com.au/articles/casual-or-permanent-nanny-australia)By Mark Hudson · 04 February, 2026 ### [Casual, Part-Time or Fixed-Term? Understanding the different employment types for a Nanny](https://paythenanny.com.au/articles/casual-or-permanent-nanny-australia) Hiring a nanny is not just about finding the right person. The way you employ them changes what you legally owe. Casual, part-time and fixed-term arrangements all come with different payroll rules, risks and responsibilities. This guide breaks it down clearly for Australian families. [Read more...](https://paythenanny.com.au/articles/casual-or-permanent-nanny-australia) [ ![](https://assets.caresies.io/articles/201/conversions/YTi4iqWkrCfi7hqBviwi-webp-featured.webp) ](https://paythenanny.com.au/articles/nanny-payroll-when-family-goes-away)By Mark Hudson · 09 April, 2026 ### [Do You Still Pay Your Nanny When You Go on Holiday? The Australian Guide](https://paythenanny.com.au/articles/nanny-payroll-when-family-goes-away) Planning a family holiday during school holidays? If you employ a nanny, it is not as simple as “pausing” work while you are away. In Australia, employment laws still apply. Here is what you need to know to stay compliant and avoid costly mistakes. [Read more...](https://paythenanny.com.au/articles/nanny-payroll-when-family-goes-away) [ ![](https://assets.caresies.io/articles/25/conversions/p1jney0SU6mff8myUqtU-webp-featured.webp) ](https://paythenanny.com.au/articles/what-s-the-difference-between-a-nanny-and-a-babysitter)By Mark Hudson · 22 May, 2023 ### [What's the Difference Between a Nanny and a Babysitter?](https://paythenanny.com.au/articles/what-s-the-difference-between-a-nanny-and-a-babysitter) Nanny or babysitter - which is right for your family? While they both care for kids, the roles come with different responsibilities, hours, and employment rules. From casual evening help to a regular daytime presence, we break down what you need to know before you hire. [Read more...](https://paythenanny.com.au/articles/what-s-the-difference-between-a-nanny-and-a-babysitter) [ ![](https://assets.caresies.io/articles/151/conversions/DIIbsSY2oYI3xxjWzN6A-webp-featured.webp) ](https://paythenanny.com.au/articles/2025-guide-to-employment-contracts-for-nannies-in-australia)By Mark Hudson · 20 April, 2025 ### [2025 Guide to Employment Contracts for Nannies in Australia](https://paythenanny.com.au/articles/2025-guide-to-employment-contracts-for-nannies-in-australia) Hiring the right nanny is step one; step two is a compliant nanny employment contract. At Pay The Nanny, we offer all our customers a free, up‑to‑date nanny agreement built to 2025 Australian rules, so you can hire confidently with our contract for nannies. [Read more...](https://paythenanny.com.au/articles/2025-guide-to-employment-contracts-for-nannies-in-australia) ![Pay the nanny](https://paythenanny.com.au/images/logo-white.png)Join Our Community Stay in the loop! 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