What tips should I keep in mind?

If paying a family caregiver, use a written care agreement to protect Medicaid eligibility. Direct hire saves 20-40% vs agency, but you handle taxes, insurance, and backup coverage. Caregiver wages may be tax-deductible as a medical expense if the recipient is a dependent.

Caregiver Salary Calculator

Calculate fair compensation for family or professional caregivers based on care level, hours, and local market rates.

Local Base Hourly Rate ($)(National median: ~$16 companion, ~$27 home health aide)

Level of Care(Higher skill = higher pay)

Hours Per Week(Average family caregiver: ~24 hrs/week)

Live-In Caregiver?(Live-in caregivers earn a daily rate)

Overtime Hours/Week (over 40)(Federal law requires 1.5× for over 40 hrs)

Results

Visualization

How It Works

Family caregivers provide an estimated $600 billion in unpaid care annually in the US. Whether hiring a professional or compensating a family member, fair pay depends on care level, hours, and local labor market.

The Formula

Hourly = Base Rate × Care Level Multiplier
Annual = (Regular Hours × Rate + OT Hours × Rate × 1.5) × 52 weeks
Employer Cost = Annual + 7.65% FICA + ~2% Workers Comp

Variables

Base Rate — Local going rate for basic companion care
Level Mult. — Care complexity multiplier (1× companion to 1.65× skilled)
Employer Tax — FICA (7.65%) plus workers compensation (~2%)

Example

Personal care aide at $18 base, 30 hrs/week: $18 × 1.25 = $22.50/hr. Weekly = $675, Monthly = $2,923, Annual = $35,078. With taxes: $38,486.

Tips

If paying a family caregiver, use a written care agreement to protect Medicaid eligibility.
Direct hire saves 20-40% vs agency, but you handle taxes, insurance, and backup coverage.
Caregiver wages may be tax-deductible as a medical expense if the recipient is a dependent.
Some Medicaid programs pay family members as caregivers — check your state's self-directed programs.
Veterans with Aid & Attendance can use the benefit to pay family caregivers.