Should you give your nanny a raise?

Should you give your nanny a raise?

Your nanny makes your life easier, yes, but they are also a professional — and you should treat them as one. Part of that is thinking about things like raises, which are common in most jobs. Here are the six instances when you should increase your nanny̵7;s pay rate.

Do you have a babysitter? Learn when you should give your sitter a raise.

1. A year has passed

“It’s customary and traditional to give your nanny an annual raise,” says Susan Tokayer, former co-president of theInternational Nanny Association. A great time to discuss the raise is during your nanny’s annual review.

How much should you give? Start with the rate of inflation in the past year (check the Bureau of Labor Statistics’ Consumer Price Index), then add between two and five percentage points, based on your nanny’s performance.

Calculate how the raise will impact nanny taxes as well, so your nanny knows what her take-home pay will be.

2. You add more duties

Tokayer says it̵7;s also important to revisit your nanny̵7;s pay anytime job duties change. Did they go from part to full time? Did you ask them to start helping with light cleaning or meal prep? Are they now taking care of a pet? Make sure you pay extra for additional chores.

3. You had a baby

If your nanny will now be caring for a new infant in addition to your other kid(s), you should definitely raise your nanny̵7;s rate. It doesn̵7;t have to be a large raise, but it should start at a few more dollars per hour, to account for her new responsibilities.

4. Your nanny received new education or certifications

Whenever your nanny goes above and beyond to improve or expand their skill set, it̵7;s important to adjust their pay accordingly. Certification in CPR, child development or related skills makes them better at their job and more attractive to other families. Your rate should stay competitive.

̶0;The more experience your nanny has, the more marketable they̵7;ll be to other people, so you̵7;ll want to retain them,̶1; says Brandi Jordan, early child development specialist and founder of The Cradle Company.

5. You̵7;re underpaying

It̵7;s a mistake that happens to a lot of new parents; they just don̵7;t know how much a nanny should cost. Pair that with a nanny who is still learning the ropes and the result is often an underpaid nanny. Fortunately, this is easy to fix. Simply use our rates calculator to figure out the going rate for child care in your neighborhood. Adjust what you̵7;re paying, if necessary.

6. Your nanny is the best

While this is totally subjective, it can be the most important factor when you consider giving your nanny a raise. Do they regularly do more than what̵7;s expected? Do your kids love them? Do you love them? If you said yes to these questions, your compensation should reflect your appreciation. This will help ensure that your nanny stays with your family and feels appreciated for their hard work.

Did you budget for a raise?

Most families are on a budget, so the idea of having to shell out extra cash to your nanny each year makes many uneasy. But it doesn̵7;t have to, especially if you plan ahead when you create your child care budget. ̶0;Think about what your pay raise schedule would be (is it 6 months, a year, etc.),̶1; says Jordan. That way, you can be sure to put away a little extra money each month to account for the raise next year.

What if you can̵7;t afford a raise?

̶0;Although it̵7;s recommended to give a raise after a year, each case is different and there may be extenuating circumstances,̶1; shares Lauren Harris, a parent, former nanny and day care worker in Reston, Virginia. You have to consider your personal situation when making the decision, as personal circumstances play a role for parents when determining all expenses in their lives.

̶0;Maybe you can̵7;t afford a $50 weekly increase, but you can probably manage a smaller increase,̶1; says Harris. And raises don’t always appear on the paycheck. Extra money that would typically go towards a raise could go toward health insurance, car insurance, a cell phone or extra paid vacation time.

For ideas, check out these: nanny job benefits families should consider offering.

If you can̵7;t add anything to her package, it may be time to look into other child care options and ways to save money on child care. Just as you wouldn̵7;t buy a car you couldn̵7;t afford, you shouldn̵7;t be paying your nanny more than you can afford.

Nannies have expenses as well and shouldn̵7;t shoulder the entire burden of a weakened economy. And if you̵7;re cutting out your nanny̵7;s annual raise, but haven̵7;t cut back on pricey dinners out, they may have a harder time understanding than if they see you cutting back everywhere.

Did you have ̶0;the talk̶1;?

Whatever your economic situation, don̵7;t be afraid of having ̶0;the talk.̶1; It̵7;s important to be open and honest with your nanny about your raise expectations when drawing up the initial nanny contract. Be clear about when your nanny can expect a raise, and you’ll save them from the discomfort of having to ask for one later on.

̶0;Good communication is the key,̶1; Tokayer says. ̶0;Most nannies understand the state of the economy. It̵7;s important to talk about why you are giving a raise or why you are not.̶1; If a nanny has typically received annual raises, and now they are not, it̵7;s even more important to talk about contributing factors.

Though your nanny may form a strong bond with your children and your family, a nanny is still an employee and you̵7;re their boss. You need to respect their hard work and offer regular raises to keep them happy on the job.


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