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Nanny Raises and More

Wondering when you should give your nanny more money?

 

 

In this article:

When it's been a year

When you have another child

 

When it’s been a year:

 

According to data from the 2015 Nanny Survey, employers typically give yearly raises (most often $1.20/hr per year).

 

To break it down:

76% of nannies working for a year or more for their employer received a raise. $1.20 was the average raise amount.
Of those who mention an hourly rate increase, 67% give a $1/hour increase, 23% give more than $1.00/hour, and 10% gave less than $1/hour

95% of families who have a nanny working for a year or more gave their nanny a bonus.
Of those who mention giving a bonus,  72% of employers paid 1 week’s pay as a bonus, 19% paid 2 weeks, with 14% paying a different amount.

 

When you have another child:

 

The Park Slope Parents research shows that it’s typically $1-3 per kid for an increase for child #2.

 

Important:

You should also make sure that you give a raise that does not cancel out the annual raise (e.g., give a $1 raise for #2 at the same time the nanny should be getting an annual raise).

 

Words of wisdom:

"It sounds like $1-3 dollars per hour is the norm. We settled on $2 per hour with the understanding that an annual raise ($1 per hour) is coming up."

“If you want to be safe $2 is good. Some people come up with a “1 vs. 2 kid” pay that if you are taking care of the baby when the nanny is out with the older child the pay rate is a 1 kid rate. Once the baby goes with the older child the pay is the 2 kid rate. Some people can keep this all straight but I just paid the higher rate from the get go. My nanny brought my older daughter to the hospital the day I had #2. It was great!”

"Our nanny's year anniversary coincided with adding our second kid, so we raised her pay $3/hr to address both (and plan to do $1/hr pay raises in future years)."

 "Our nanny seems to think $1 is way too little an increase for a second child, but this is getting too expensive for us."

"I am due with my 2nd very soon [...] We will give her a raise at year end, plus the extra $1 for my 2nd once I am back at work around end Feb and she has 2 kids to handle. She'll have to handle getting our older daughter to nursery school part time and pickup with the little one in tow until next year when she is full time in pre-K. While I am on leave, I planned on paying her the same as now but probably reducing her hours a little, just because I won't need her as often during that period. We love our nanny and want to keep her really happy. I have been working longer hours the last month in anticipation of going out so I feel ok to give her a bit of a break now without a pay cut when I can. I think of her career with us as a marathon and don't want to be overly measured in her favor so that we don't have to be overly measured when it's in ours. I really couldn't have the job I do without her." 

"Similar situation here and similar logic. I just had baby #2, am home on mat leave and our nanny is due for a raise on Jan 1. I was planning to raise her by $2/hr ($1 for annual raise and $1 for 2nd child) starting Jan 1 even though I won't go back to work for a bit after that. While on mat leave I reduced her hours to 40, which is kind of the "full time" minimum, instead of 50 when I was working.  I have to say I'm really thankful to have her here 40 hours a week to take care of my 3 year old while I'm focusing on the baby, even though I'm home. My daughter is in part time preschool but I'm still going to pay $18 even the hours she's in school and the nanny only has the baby instead of calculating hours with 1 kid vs. 2 which just seems too complicated."

 

Other ideas and situations:

"Our nanny is with us 4 years and instead of just offering her another raise this year which can really get costly we offered her 1 additional week vacation or 2% raise. She chose the extra week. 2% is not cost of living but frankly there have been many years where I have not gotten the full 3% increase at my job! So I feel it's fair but also what is doable for our family."

"Some people pay a different amount for a nanny taking care of 1 or 2 children. I found that to be confusing, but if one child goes to school and the other is at home you can get more creative with how you pay."

"This is not quite the same thing but we do a nanny share sometimes and when the kids are alone, we pay our nanny $17/hour. When she has the 2 kids together she gets $24/hour, $12 from each family. The kids are the same age so not the same as a baby and toddler... We're hoping to keep our nanny and end the share when I go back to work after our baby comes and I have been wondering if she will expect $24/hour when she is watching both kids. I thought I'd just ask her what she thinks is fair and we will negotiate from there." (wages as of 12/2016)

 

Other related information on Park Slope Parents

 

FAQs about the Nanny Relationship

FAQs about Hiring a Nanny

Maternity Leave for a Nanny

Nanny and Paid Vacation

 

Last updated: December 2016

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