Figuring out what to pay a home caregiver in Colorado can feel surprisingly complicated.
You might think there’s a simple hourly rate you can look up and use. But once you start researching, you quickly realize the numbers vary a lot — and for good reason.
Caregiver pay depends on:
If pay isn’t calculated correctly, families often struggle with turnover, scheduling gaps, or compliance issues.
This guide breaks down how to calculate fair and realistic caregiver compensation in Colorado step by step.
Colorado has one of the tightest caregiver labor markets in the country.
Demand has surged because:
Caregivers have options. If compensation isn’t competitive, they move on quickly.
In many cases, paying a few dollars more per hour actually saves money long-term by reducing turnover and avoiding repeated hiring and training.
Let’s start with the baseline.
If agencies in your area charge clients $25 – $40 per hour, that’s a strong signal of the local market rate — even if you’re hiring privately.
Caregivers know these numbers.
Not all caregiving roles pay the same. The more complex the care, the higher the expected rate.
Companion care
Personal care
Dementia or Alzheimer’s care
Medical or skilled tasks
Night shifts, live-in care, and weekend work also require different pay structures.
These roles are calculated differently from standard hourly care.
Typical daily rates:
These arrangements must still follow minimum wage rules.
Colorado’s Consumer Directed Attendant Support Services (CDASS) program allows Medicaid recipients to hire their own caregivers — including family members.
Instead of using an agency, participants receive a monthly care budget and manage employment themselves.
This flexibility is powerful, but calculating pay requires understanding how the budget works.
Many families assume the entire budget goes toward wages.
It doesn’t.
Your monthly CDASS budget must cover:
Monthly CDASS budget: $3,000
After required expenses:
That amount is what you divide by hours to determine the hourly wage you can sustain.
This step is where many families accidentally under-budget.
CDASS sets minimum and maximum pay ranges.
Typical limits:
In high-cost areas like Denver or Boulder, private pay caregivers often earn more — but CDASS wages cannot be supplemented for the same hours.
However, families can hire additional private caregivers outside their Medicaid hours if needed.
Families hiring caregivers directly must follow overtime laws.
Live-in caregivers are treated differently and may be exempt from overtime, but minimum wage still applies.
Many families forget to budget for overtime — which can lead to unexpected costs.
Holiday pay isn’t legally required, but most professional caregivers expect it.
Typical holiday premium:
Offering holiday pay helps retain caregivers long-term.
If caregivers drive clients to appointments or run errands, mileage reimbursement is expected.
2024 IRS rate:
67 cents per mile
Driving time also counts as paid work hours.
Example:
That equals 2 paid hours beyond hands-on care.
Transportation costs should always be included in your pay calculations.
Hiring a caregiver privately means you become a household employer.
Key responsibilities include:
Payroll Taxes
Once you pay more than $2,700 annually:
You’ll also need to issue:
Ignoring these requirements can lead to serious penalties.
Workers’ comp insurance is required if
Typical cost: 2–4% of payroll
CDASS participants receive coverage through the program, which is a major advantage.
To attract and keep great caregivers, compensation should include:
A written caregiver contract helps prevent misunderstandings and protects both sides.
Calculating caregiver compensation in Colorado involves more than choosing an hourly rate.
You must factor in:
When done correctly, you attract reliable caregivers and avoid costly turnover.
If you’re navigating Colorado programs like CDASS, Panda Care Homecare helps families manage payroll, compliance, and caregiver administration. You can learn more at Panda Care Homecare.
