Hiring a nanny is one of the best long-term investments a family can make for their children. Nannies help keep a household running and keep parents from pure exhaustion; they work hard so that the time you spend with your children can be spent with the best versions of yourself. Like any other profession, nannies deserve to be compensated fairly for their efforts, and this includes providing raises and bonuses. Are you unsure of when raises and bonuses are customary to provide? Read on for our suggestions!
Annual Raises: When and How Much?
The most traditional time to offer a raise is during the performance review for the nanny’s yearly anniversary of working with your family. This is also the time when you can renew your annual work agreement and reflect on the past year. At the very least, families should offer a Cost of Living Adjustment (COLA) or the annual percentage increase in the Consumer Price Index—this is typically around 3-5%. If your family has the means, offering anywhere from a 3 to 10% annual increase can show your appreciation for their hard work.
For tips on how to conduct a performance review with your nanny, please check out our previous blog on the topic: How to Perform an Annual Performance Review with Your Nanny.
Raises for Added Responsibilities
Another standard time to offer a raise is when the role’s requirements change, such as an increase in schedule or job responsibilities. This can involve anything from extra housework to specialized childcare, such as newborn care. It is especially important to remember this when you have more children—in 2025, offering a raise of 10-25% of the current wages with each additional child is common.
Bonuses: When Are They Appropriate?
In addition to significant winter holidays, when a nanny goes above and beyond in their job duties, offering a raise or even a one-time bonus can help show your nanny how much you appreciate them and tell them that their effort does not go unnoticed.
While it’s not always necessary, offering a bonus during a significant milestone in your nanny’s life, such as marriage or the birth of their child, can be a kind gesture showing that you care about your nanny not only as an employee but as a person your family cherishes. A standard annual or holiday bonus is often around the same amount as one to two weeks of their gross pay.
Are you still looking for your perfect nanny? Contact us at Nanny Authority today! Email info@nannyauthority.com, call (973) 466-2669, or visit www.nannyauthority.com.