The Financial Cost of Caregiving

Caregiver must be provided with their own bedroom.

Estimated Cost of Annual Live-In Caregiver:
Live-in Caregiver wages: $1,763 monthly x 12 months (HST not applicable) $21,156
Weekend care: costed at $200 – 250 for the weekend (average $225 x 4.3 weekends/month or $967.50 x 12 months = $11,610
Two weeks vacation, care provided by an agency:
Assumed to be provided at an agency rate of $23/ hour: $23 x 24 hours x 10 days $5,520
One week coverage for worker illness, provided at agency rates of $23/hour x 24 hours x 7 days
Total (HST to be added to all but the first item)

Option 2: 24-hour In-home Personal Support Worker (PSW) – Agency Hire

The agency pricing shown below is based on the understanding that the caregiver is able to obtain a full night of sleep (6-8 hours), with no more than two awakenings. Pricing includes: mandatory remittances, WSIB, general insurance, vacation, benefits etc. Public and civic holidays are invoiced at 150% of the regular rate, to cover the time-and-a-half requirement. There are no guidelines for community Home Care Agencies with respect to remuneration and therefore each agency tends to provide services at different rates. You will have to research costs in your local community. The cost associated with 24-hour care at various daily rates is shown below.

Agency A: regular rate of $275/day
$275 x 355 days = $97,625 + HST
$412.50 x 10 public and civic holidays = $4,125 + HST
Total Cost= $101,750/year + HST
Agency B: regular rate of $205/day
Total Cost = $72,775/year + HST (using the same calculations)
Agency C: regular rate of $195/day
Total Cost = $69,225/year + HST (using the same calculations)
Based on the above sample rates, the estimated average annual cost for an agency-hired live-in caregiver is $83,250 plus HST.

If overnight awake staff is needed, the hourly rate would apply to the full overnight shift and these costs would be higher.

Given the high cost of purchased care, more and more family members are taking on the caregiving role for their elders. While the various political parties are discussing caregiver allowances and caregiving tax benefits, the onus of care (both physical and financial) will remain on the shoulders of the family.

Written by: Audrey R. Miller MSW, RSW, CCRC, CCLCP, Managing Director, Elder Caring Inc. 416 658 8887/1 866 473 8887 [email protected]

Keywords: caregivers, costs