When to give your nanny a raise and how much to pay
Regular raises can help retain your favorite nanny for the long term.
Nannies are employees just like any other. Working for your family, whether full time or part time is how they make their living and helps them plan their lives. So just like in any other job, there is an expectation that a regular raise at appropriate times is part of an ongoing working relationship.
Why should you give your nanny a raise?
The main reason to give your nanny a raise (other than the fact that you are a caring employer, of course) is that it will ensure your nanny stays with you for a longer time. A nanny or sitter who feels valued and who feels that their professionalism is respected is more likely to stay in a job than one who feels like an employer isn’t taking their job seriously.
Because nannying is such a personal type of employment, often with strong emotional ties to the family, most nannies want to stay with a family they know and love. So if the working conditions continue to be good, they won’t want to be looking elsewhere.
When is a nanny raise appropriate?
The most common time nannies and babysitters get a raise is on a yearly basis as part of the regular work agreement. This may even be outlined in your nanny job contract at the beginning of your working relationship. A certain percentage at the start of each new 12-month period is appropriate. It is also reasonable for a nanny to negotiate a larger cost of living increase at times when costs are going up severely, such as times of high inflation.
Another instance where a nanny raise is appropriate is if the scope of their work has changed significantly. If new responsibilities have been added to their plate since you first agreed on the terms, a raise shows that you acknowledge and value the expanding role the nanny fills in your home.
Examples of increased nanny responsibilities include:
A new baby joins the family (yay!)
Added tasks like housekeeping, driving, or more elaborate cooking
Combined caregiving tasks with more personal/family assistant type tasks
New responsibilities like regular travel with the family (when there should also be a separate compensation agreement for the travel time itself)
How much should a nanny raise be?
Once you’ve decided it’s time to give your nanny a raise, the next question comes up - how much should you raise the rate? Here, it’s a combination of general averages with your personal situation and relationship with the nanny.
Ways to calculate the raise amount for your nanny:
Use a standard annual raise. For a regular annual raise based on a general cost-of-living increase, 3-5% is appropriate.
If you want to use your raise as a way to communicate that you adore your nanny, the higher range or beyond is a good way to go. (Some families choose to signal that appreciation as a nanny holiday bonus instead.)
To use the raise as a way to keep your nanny around, you can also work the increase (or bonus system) into your work contract as a sort of retention plan, increasing % raises the more years the nanny stays on.
In times of high inflation, a 3% may not be enough, even as a standard.
Used increased responsibility raises. This raise is trickier and much more based on your unique situation.
For a second child, an additional $2-3/hour is often standard.
For a third child, the addition is often closer to $4-5/hour, or even more. Nannies for families with three or more children often have a significantly higher wage in general, so it may be hard to keep on a nanny who is making much less than other similar positions may offer.
For other types of added responsibilities, some sort of rate increase signals to the nanny that you acknowledge the change in work scope, but is much harder to find a standard range for.
How to handle unique childcare situations
Your family’s nanny situation may also be entirely unique. Perhaps you are bringing a new partner’s children into an equation.
Or you might have a new baby, and a newborn care specialist will be on hand for the first few months, then your older children will spend the day at school, so the nanny is effectively still spending most of their day working with one child.
You might you have a very close relationship with your nanny and know they are struggling financially, so you want to give a higher raise this year, but not set a precedent for equally high raises every year.
The bottom line is to keep open communication with your nanny and work together to find a setup that works for both sides. Make sure to always write down any new agreements in a job contract so that everyone knows the plan and can refer back to it in case of any confusion. You may also consider adding nanny benefits into a job contract to help retain your fantastic nanny for the long haul.
When in doubt about nanny raises, ask an expert
Raises, compensation, and benefits can be a tricky world to navigate. If you need someone to guide you along the way, while also helping you find the best nanny for your family, reach out to us at Smart Sitting. We know what works because we’ve seen it.
And if you’re not yet looking to hire a nanny but still want all the advice about parenting, hiring nannies, and fun activities to do with your kids - sign up for our newsletter. It brings all the knowledge from our years in the business straight to your inbox!