Caregiving remains one of the fastest-growing professions in the United States. As the population ages, the need for skilled individuals who can help with daily tasks like grooming and dressing, as well as medical needs and medication management, continues to grow. Some private caregivers are self-employed, while others help assist family members. What is the self-employed or family caregiver pay rate? And how can you get paid to care for a family member with a disability or illness?
Caregivers assist with daily tasks and medical needs. For example, they may help transport an elderly relative to their medical appointments or the grocery store. They may manage medication remotely or help with bathing, dressing, and daily exercise. Caregivers may live with a care recipient, help an elderly relative remotely, or work in a facility.
There are many types of caregivers:
Many family caregivers end up helping aging relatives out of necessity and may not even plan on becoming full-time caregivers. Those that work in facilities often have certifications and degrees that make them more qualified. In other cases, a private caregiver may offer services to the community outside an agency or run their own business.
Becoming a caregiver requires little more than a high school diploma, a driver’s license, and fundamental skills like helping the elderly bathe and dress or light housekeeping. When you start as a caregiver, list your relevant skills and qualifications. For example, certifications, degrees, or specialized skills can help you earn more and gain better employment.
If you are a family caregiver looking to become a paid private caregiver from your family member, sit down with them to discuss your pay rate, tasks needed, liability, and other issues. Moving from a relative helping out to be a paid family caregiver can be a big adjustment. However, since many family caregivers spend considerable time and personal finances to support their loved ones, moving to a regularly paid position may be the best situation for everyone
If you decide to start your own business, build your profile online and work on a list of references to help you gain meaningful word-of-mouth recommendations. Sometimes even posting a notice on a community bulletin board or offering services through a church or synagogue is an excellent first step to building clientele.
Some places to advertise your private caregiver services:
Treat your caregiving services as a private business. Take the time to research how to manage your business, legal issues, state requirements, and how to manage a small business in your state. Each state differs. Think about liability, insurance, and paying taxes. If your business expands, consider the costs of hiring additional employees, costs like gas and transportation, and other expenses to help you run your private business.
Maybe you don’t want to manage your own caregiving business or need a steady income. If you decide that working on your own involves too much, apply to entry-level positions at area nursing homes, assisted living facilities, and hospitals. There is a growing need for skilled caregivers nationwide. Finding your foothold in the industry should not be too difficult if you have the skills and ability to do the work.
Countless agencies, assisted living facilities, and nursing homes hire caregivers annually to manage an increasingly elderly population. When working with an agency, you will be expected to complete assigned tasks like assisting with bathing, housecleaning, running errands, preparing meals, or providing transportation. Private caregivers typically receive lower wages than those working with an agency or facility.
Private caregivers may make between $17-25 per hour. Higher-paid caregivers may make up to $67,000 per year. Live-in caregivers may earn between $25,000 to $44,500.
In most states, a caregiver makes about half the median average income for workers in that state. For example, if a state has a median salary of $50,000, most caregivers in that state make around $25,000. For this reason, most caregivers try to increase their income by acquiring skills, education, and certification. This increases their overall value and allows them to demand higher wages and benefits. The family caregiver pay rate should reflect the same as a private caregiver.
Needless to say, many private caregivers need additional income to make ends meet. They may include other services like housekeeping, pet sitting, dog walking, cooking, or childcare as part of their services. If you already include these services when you care for your clients, then make sure your rates reflect the work and expenses involved. For example, gas reimbursement can add up over time.
Experienced private caregivers may build up their business by offering specialized services like end-of-life doula services or caregiving coaching for family caregivers. Increase your overall pay by trying to monetize your current skill set.
Maybe you excel at working with older adults with dementia. Then you may find yourself able to build a niche coaching families caring for those with dementia, teaching art classes for dementia patients, or offering counseling services to elderly couples dealing with a new Alzheimer’s disease diagnosis.
According to the IRS, an independent caregiver who does not work for an agency is considered a household employee if they make more than $2100 a year. The family hiring the caregiver takes on employer responsibilities, including taxes and payroll. As an employer, the family can dictate the hours and activities involved in caregiving. An independent contractor, however, will choose their work days and has more control over their schedule and tasks.
The level of caregiving can vary differently from client to client. Some elderly individuals need light housekeeping, help with bathing, or even social company. Other adults with Alzheimer’s disease may require full-time care, and extensive help with daily needs, which may be a challenge. Remember that these rates all apply to family caregivers, as well.
Consider all the tasks and requirements when negotiating with a family for private caregiving. Also, look at the actual number of hours you will be working. Most private caregivers work fifty or more hours each week. Be realistic and reasonable when negotiating hourly compensation with potential clients. Know your rights if you plan on working long-term with a family. The family caregiver pay rate does not change because someone is family. They are treated like an employee.
Private caregivers that are considered household employees have all the same protections as non-exempt employees under the IRS, and they fall under the Fair Labor Standards Act. Families hiring private caregivers as employees need to pay minimum wage and overtime for any time over 40 hours a week. The minimum wage varies state-to-state, but most private caregivers make at least a minimum of $10-$20 hourly.
Private caregivers provide a necessary and affordable service to aging adults. Many people find that caregiving earns them extra income while allowing them to make a big difference in someone’s life. Explore the benefits of becoming a caregiver in your community. Make a difference.
