What every nanny should know about annual raises
As a nanny, your role is invaluable. You provide care, stability, and love to the families you work with. But it’s also a job, and you deserve to be fairly compensated according to industry standards – which are sometimes murkier in childcare than in other types of employment.
In our 15+ years of helping nannies get great nanny jobs, we’ve made it our mission to empower caregivers and enable them to build a true career out of what they do best. We want to make sure you know what you can expect and help you get there. Today’s topic: annual raises. Other types of jobs have them, what about nannies?
Should nannies expect annual raises?
Short answer: YES.
Annual raises are common in the nanny industry! Many families recognize the importance of rewarding their nanny’s commitment and exceptional work. Raises not only reflect your value but also account for rising living costs and inflation, and as such are an imperative part of a long-term working relationship with a family.
Annual raises may contain two parts:
Cost-of-living increases (COLA):
These typically range from 2-4% annually and are designed to help you keep pace with inflation and higher expenses. The last few years’ high inflation have increased the average COLA compensation, especially in larger cities.Performance-based increases:
Families may also reward you for exceptional performance, loyalty, and going above and beyond. These increases are harder to quantify on average, and depend on the family’s budget and your contributions, but may be between 3-7%.
It’s common for these two raise types to be combined, resulting in a total increase of 5-10%. Sometimes families will also add a holiday bonus or other type of annual bonus based on your performance (or substitute it for the performance-based rate increase).
When should you expect a raise?
Just like in many other jobs, raises often coincide with an annual review. This is an opportunity for families to discuss your performance and make adjustments to your compensation. Here are the most common timings:
Work anniversary:
Many families give raises at your one-year mark to celebrate a full year of dedicated service.Start of the calendar year:
Some families align raises with the new year as part of their financial planning or performance review process.
Not all families think to have an annual review, forgetting sometimes that their beloved “bonus family member” is also an employee. This is why nanny job contracts are so important (see below).
Top tip: You can also request an annual review if the family doesn’t bring it up. It’s a great chance to talk through what’s going well and what might need adjusting!
Is a raise mentioned in your contract?
A well-written nanny contract should include a section about raises or regular salary reviews. This takes out any anxiety you (or the family!) may feel about it and make it easier to discuss.
If your current contract doesn’t mention this, or you don’t have a contract, don’t worry—it's never too late to discuss it. This may feel daunting, we get it. If you are a nanny through Smart Sitting, we are always here to guide you through it, or to help mediate with the family if you hit a snag in the communication.
Top tip: Our Community Coordinator is always ready to answer any questions you have. Or you can bring them to our weekly meetings to get advice and guidance! Check out the nanny resources page for more. ♥️
What about part-time nannies and babysitters?
While annual raises aren’t as standardized for part-time nannies or regular babysitters, it’s still fair to ask for periodic increases in your hourly rate. Consider discussing:
Adjustments if your responsibilities or the number of children you care for have increased.
Recognition for additional training, certifications, or years of loyal service.
You might also get a bonus during the holiday season as a token of appreciation. If you a regular sitter for a family, say as a part-time, after-school sitter or in some other way have a standardized agreement with them, you should be able to expect an annual raise.
If you are an as-needed babysitter this is rarely the case with individual families, but you may increase your rates yourself as the years go by and your experience increases.
Tips for advocating for yourself
If you’re nervous about discussing a raise, remember these tips:
Do your research: Understand local nanny salary standards and typical raise percentages.
Highlight your value: Share examples of how you’ve gone above and beyond for the family.
Be professional: Keep the conversation positive and centered on your role within the family.
Advocating for yourself is a skill—and one that can help you grow professionally and personally. Remember that this is your job, and it deserves to be treated as such!
Are you an extraordinary nanny looking for your next family?
At Smart Sitting, we connect exceptional nannies and babysitters with families who appreciate and value their contributions. We help you not only to find the right family for your skillset and availability, but set you up with contracts, rates, and support fo as long as you’re in our network.
If you’re ready for your next adventure or need support navigating your career as a caregiver, we’re here for you! Apply now via the button below, let us know more about you, and if we think we can help you, we will set you on the path to your next great nanny job. Let’s make it happen, together!